[nc-budget] PROPOSAL FROM NAMES COUNCIL BUDGET COMMITTEE ON THE ADMINISTRATION OF DNSO VOLUNTARY FUND

["Cochetti, Roger" <RCochetti@verisign.com>]

Stuart and Louis-

As you will recall, over the past several months, the DNSO Names Council's
Budget Committee has been designing a structure for the administration of
the funds that we expect to be voluntarily donated later this year to the
DNSO. During our consideration of this subject, ICANN management represented
to us that it would be willing to enter into an agreement with the Names
Council under which ICANN management would be willing to serve as a
custodian for the DNSO of the funds that are voluntarily donated to the
DNSO.  Under this custodial relationship, as the Budget Committee discussed
it with ICANN management, ICANN management would be responsible for
faithfully executing financial decisions of the Names Council or its
designee, unless ICANN management feels that the execution by ICANN
management of any particular instruction would either be illegal or would
jeopardize ICANN's tax exempt status.  These decisions would mainly involve
the deposit or release of funds donated to the DNSO.

The Council has asked the Committee to resolve this administrative matter
quickly in order that the solicitation and generation of funds for the
voluntary fund can get underway.  Accordingly, the NC Budget Committee
approved the attached resolution last week in which we accept ICANN's offer
to administer these voluntarily-collected funds under defined circumstances.
Because we are anxious to proceed with this matter, the Committee asks that
you both confirm that you accept our understanding of your offer; and
acknowledge our acceptance of your offer within five days of today.

As an aside, I would note that the administration of these voluntary funds
is distinct from  -- but not entirely un-related to -- the administration of
the funds that are collected from the DNSO Constituencies for dues payments
to the DNSO.  The funds generated by the dues paid annually by the DNSO's
seven Constituencies have been administered by ICANN management since 1999
(without any formal agreement) and the Budget Committee will now begin an
examination of the administration of the funds generated by assessed
Constituency dues.

Thanks for your cooperation on this,

Roger Cochetti,
Chair
Names Council Budget Committee


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The NC Budget Committee resolves to accept the offer by ICANN to administer
DNSO funds on the understanding that:
* ICANN will charge no administration fee
* ICANN management will dispense these funds according to instructions
from the Names Council or its designee, unless ICANN formally notifies the
Names Council and its Budget Committee that  to do so would either be
illegal or jeopardize ICANN's tax status.

To ensure that arrangements for the administration of DNSO funds are
completed in a timely manner, the Budget Committee requests ICANN
confirmation within 5 days to the arrangements outlined above.

The Budget Committee further resolves that, in the event that ICANN is no
longer willing to manage DNSO funds, it will  proceed with the establishment
of a custodial relationship for its voluntary funds by a non-profit
corporation that would be organized in, and under the laws of, France;
recognizing that this French non-profit organization may establish a bank
account for the DNSO's voluntary fund with a bank either inside or
outside of France.