May 31, 2021 20:00:00

It has been pointed out that the Wikipedia management organization, which frequently asks for donations, has considerable assets.

Wikipedia , an internet encyclopedia edited by volunteers, is known for its extensive content and frequent banners asking for donations . Those who see these requests may think that Wikipedia must be struggling financially, but the non-profit organization that runs it, the Wikimedia Foundation , has ample funds, as pointed out by the web media The Daily Dot .

Wikipedia Endowment: The Site Is Rich. Why Is It Fundraising?
https://www.dailydot.com/debug/wikipedia-endownemnt-fundraising/

Unlike most websites, Wikipedia does not earn revenue through advertising or other means, but it does display a prominent banner on the page to solicit donations from users. The donation requests include statements such as '98% of readers will not donate,' 'If everyone who reads this message donates 300 yen, Wikipedia can continue to grow for the next few years,' and 'It would cost the price of a cup of coffee.'

These banners seem to appeal to how Wikipedia, which is a non-profit organization, is suffering from a lack of funds, and some people may think that 'Wikipedia is in danger of closing down due to lack of funds.' However, in fact, Wikipedia has enough assets that it does not need to worry about funds for a while.

In 2016, the Wikimedia Foundation announced the establishment of the Wikimedia Foundation as a permanent source of funding for Wikipedia and other services, with a goal of raising $100 million over 10 years. Just five years later, in 2021, the Wikimedia Foundation has already succeeded in raising more than $90 million, and is expected to reach its initial goal of $100 million by the end of 2021.

The Wikimedia Foundation's net assets reached $180 million in the 2019-2020 fiscal year, and it

raised $142 million in donations in the first three quarters of the 2020-2021 fiscal year. The graph below shows the Wikimedia Foundation's financial situation, with the vertical axis representing the amount and the horizontal axis representing the fiscal year. The green graph showing 'income' exceeds the red graph showing 'expenses' every year, and the black graph showing 'net assets' is also growing steadily, so it can be seen that the Wikimedia Foundation continues to operate in the black. Note that this net assets does not include the assets of the Wikimedia Foundation, and funding from the Wikimedia Foundation to the Foundation is included in 'expenses,' so the foundation's overall assets are more abundant than they appear.

The Wikimedia Foundation has been able to raise a lot of funding through traditional donations alone, but in recent years there has also been a move to offer a paid enterprise version of the API in order to make profits from companies that use Wikipedia data commercially.

The Wikimedia Foundation has already established a limited liability company (LLC) in the United States and is said to have already begun negotiations with technology companies.

Wikimedia Foundation announces it will offer a paid 'enterprise version API' - GIGAZINE

By Noj Han

The Wikimedia Foundation's move has been met with concern even among Wikipedia's core editors. For those who sympathize with Wikipedia's ideals, the large banners calling for donations have also been a source of disappointment , The Daily Dot points out.

At the time of writing, the Wikimedia Foundation has more than 500 employees, with the top earning between $300,000 and $400,000. Meanwhile, tens of thousands of editors who add information to articles and discuss their content are all unpaid volunteers. Some volunteers are wary of the possibility that the foundation's profits could lead to potential corruption.

The Daily Dot pointed out that 'the Wikimedia Foundation's financial independence is clearly not at risk,' and criticized the way in which the Wikimedia Foundation displays donation banners not only in developed countries but also in developing countries, even if the Wikimedia Foundation is seeking surplus funds to function as a 'knowledge infrastructure' in the future.