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The Wiki Piggy Bank
Wikimedia grows rich as Wikipedia donations are used for political causes
August 20, 2023
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Over the last two decades, Wikipedia has become one of the most visited -- and most referenced --websites on Earth.

And nearly every one of us is familiar with Wikipedia's regular requests for donations, often including urgent-sounding text along the lines of "protect Wikipedia's independence" and "without reader contributions, we couldn’t run Wikipedia."

Sounds pretty dire, right?  Wikipedia must be in pretty rough shape!  They need those donations right away!  If I don't donate, they might need to shut down!  Surely they run a pretty tight ship, with some pretty lean and mean operations... right?  And surely -- surely -- the funds they have are being handled in a transparent way!

You know what?

Just for kicks, let's take a look at the finances of Wikipedia -- using all publicly available sources of documentation (including IRS filings, annual reports, and audits) -- and see what the real financial state of Wikipedia is like.

Because this is The Lunduke Journal.  And that's what we do.

Spoiler: It's all really, really weird.  And highly sketchy.  Also a ton of money donated for Wikipedia... isn't used to run Wikipedia.

The Wikimedia Foundation

The financial core of Wikipedia is the Wikimedia Foundation.  The Foundation, itself, is responsible for running the actual Wikipedia servers -- and that is where everything else branches out from.

Let's start with the most basic piece of information we need:

How much money does The Wikimedia Foundation receive, in donations, every year -- from people who believe they are directly funding the Wikipedia servers?

According to the most recent IRS filings (2021)... roughly $164 Million USD for the year.

Public Donations to Wikimedia, per year.  Source: 990.

Year-on-year, Wikimedia is seeing significant growth -- with each year recording record donations.  Up an additional $9 Million between 2020 and 2021 alone.

While those numbers seem large, at first glance, they really only tell a small part of the story.

What if -- for example -- Wikipedia needs even more than $164 Million, every single year, to operate?  What are the various expenses of Wikipedia?

Luckily, we have a high level breakout of expenses in the yearly Wikimedia Foundation audit.

Turns out, the costs associated with the server hosting of Wikipedia for 2021 was just shy of $2.4 Million.

But server hosting costs are only part of the equation, right?  There's also other wages, travel, and all manner of expenses.  So let's add it all up.

Revenue and Expenses.  Source: 2021 Audit.  Note: The numbers shown for 2022 are not final and are likely to be wildly different than the numbers published in the official 2022 audit.

After all is said and done -- and all revenue and expenses are taken into consideration -- The Wikimedia Foundation received over $50 Million dollars more than they spent in 2021.

They made $50+ million in profit.

Doesn't sound like an organization that is hurting for funding... does it?

Let's take a look back over the last few years (starting in 2015) and chart out the yearly financials of Wikimedia.  It shows some absolutely astonishing growth in terms of total assets (such as money in the bank).

Sources: Yearly 990's and Public Wikimedia Audits

A few items worth noting:

  • Server Hosting related costs for all Wikipedia related sites was $2 Million in 2015.  It has remained mostly flat (compared to income and other costs) only raising to $2.4 Million as of 2021.
  • As of 2021, Wikimedia has over $231 Million in assets.  And growing... rapidly.  Just look at that blue line!
  • Assets and profit are growing, despite a massive increase in Salaries and Wages: from $26 Million in 2015... to $67.8 Million in 2021.

So.  Let's answer a burning question:

Q: Does Wikipedia desperately need your donations in order to continue operating?

A: No.  Not by a long-shot.  If donations dropped significantly, there would be no hit to Wikipedia operations.  Certainly not for quite some time.

When Wikipedia tells you they need your $5 donation to keep running?  They are lying to you.

In fact... this is just the tip of the iceberg.

There are also two unique financial entities, related to Wikimedia, that are... extremely strange: The Wikimedia Endowment and The Knowledge Equity Fund.

Let's take a look at those.

The Wikimedia Endowment

Back in 2016, The Wikimedia Foundation establed "The Wikimedia Endowment" -- with a goal of stockpiling $100 Million dollars worth of funding within the endowment.

So what is the stated goal of The Wikimedia Endowment? 

"The Wikimedia Endowment is our enduring commitment to a world of freely shared knowledge, now and in perpetuity."

Ok.  Vague.  But that tends to be the way with these sorts of foundations.

What sort of work actually gets funded by this Endowment?  According to their website... they only give a list of "select projects".  Not a complete list.  And we also don't have any details of how much this Endowment spends on any given project.

Source: wikimediaendowment.org

Not specific.  Not transparent.  No amounts given.  Or dates.  Or... much of anything.

But we do know that the Endowment has met its $100 Million funding goal (and still growing) as of 2021:

"as of December 31, 2021, the Endowment held $105.4 million ($99.33 million in an investment account and $6.07 million in cash), with an additional $8 million raised in December 2021 due to be transferred to the Endowment in January 2022."

Now... here's where The Wikimedia Endowment starts to get... weird.

From the time the Endowment was created, in 2016, to 2021... The Wikimedia Foundation deposited $5 Million dollars (of Wikipedia donations) into the Endowment.  Totalling $30 Million according to the most recent Wikimedia Foundation Audit.

Source: 2021 Audit

But... wait.  Wait.  Wait.

Two big questions crop up from that paragraph from the 2021 audit:

  1. If Wikimedia Foundation only contributed $30 Million (from user donations) to the Endowment... who contributed the rest of the money?  A company?  Rich benefactor?
  2. And what is this "Tides Foundation"?

Turns out, the benefactors of this Endowment are absolutely fascinating.

Source: Wikimedia Endowment Benefactors

You read that right.  George Soros.  Yes, that George Soros.  (Also Facebook & Google).

As for "The Tides Foundation", they run and manage the entire Wikimedia Endowment.  All $100+ Million of it.

Here is a very intereting bit, from Wikimedia:

"The funds may be transferred from Tides either to the Wikimedia Foundation or to other charitable organisations selected by the Wikimedia Foundation to further the Wikimedia mission."

Go ahead.  Read that sentence again.

That Wikimedia Endowment money?  That 100 Million bucks?  Could go to "other charitable organisations".  What are those?  Who knows!  There's close to zero transparency about it.

Whoever the heck "Tides" is... they have an awful lot of power here when it comes to this "Wikimedia Endowment" money.  Let's go further.

What, exactly, is Tides?

This is what Wikipedia says about Tides (it seemed an approriate place to reference):

"Tides Foundation is an American public charity and fiscal sponsor working to advance progressive causes and policy initiatives"

Yep.  The Tides Foundation is a specifically political organization... for funding, organizating, and pushing specific political agendas.

Editorial Note: Here at The Lunduke Journal of Technology, we try our best to stay away from politics.  As such, we will not be discussing some of the many, and varied, political stances of The Tides Foundation in any detail here.  But, since Tides (and, as we will see, Wikimedia) are making pointed political statements and investments... The Lunduke Journal will be including those and letting you, the reader, make up your own mind about any political ramifications.

Is it strange that Wikipedia donations are being sent, by the Millions, to be handled by a political orgainzation?  Yes.  That is, most definitely, strange.  Considering Wikipedia has repeatedly stated the importantce of neutrality... incredibly so.

But it gets... even weirder.

Neither Wikimedia nor The Tides Foundation publish details about how those funds are being used.  It appears to be a secret.  But, considering what The Tides Foundation does, it is something political.  And only on one side of the political spectrum.  Not neutral, like Wikipedia says they must be.

And the ties between Tides and Wikimedia go way, way beyond just managing a hundred million dollars...

In 2019, The Wikimedia Foundation hired a new General Council.  Where did that person work in her previous job?  You guessed it.  The Tides Foundation.  Seriously.

What do we know?

  • The Tides Foundation manages and runs all $100+ Million of the Wikimedia Endowment.
  • Donations to Wikipedia paid for roughly $30 Million of that Endowment (with the remainder coming from unknown sources).
  • The Tides Foundation exclusively does political work for one part of the political spectrum.
  • The connections between Wikimedia and Tides run deep.
  • Neither Tides, nor Wikimedia, have published how that money is being used.

Which brings us to yet another area where Wikimedia is investing Wikipedia donations... in ways that are extremely political.

Once again: The Lunduke Journal of Technology is not going to tell anyone what they should think about any particular political views.  The official stance of The Lunduke Journal is that extreme politics -- of any kind -- tend to not be a positive force in the running of software and other computing projects.

Knowledge Equity Fund

Let's talk about one more way that Wikipedia donations are spent.  This concerns a much smaller amount of funds than we previously talked about with the Endowment... but the stated goals around it warrant documenting.

According to Wikimedia:

The "Wikimedia Foundation Knowledge Equity Fund" is a US $4.5 million fund created by the Wikimedia Foundation in 2020, to provide grants to external organizations that support knowledge equity by addressing the racial inequities preventing access and participation in free knowledge.

Here are some quotes, from the same Wikimedia page, to provide clarity around their goals:

"The Wikimedia Foundation defines racial equity as shifting away from US and Eurocentricity, White-male-imperialist-patriarchal supremacy, superiority, power and privilege"

 

"Racial equity aims to promote ... non-White, non-US ... communities"

Whatever your thoughts around any of those statements, it should be noted that Wikimedia is spending $4.5 Million dollars worth of Wikipedia donations to further those goals.  Money that is not being spent on running Wikipedia.

In fact... it is worth noting that the dollar figure being allocated towards this "Knowledge Equity Fund" is twice the size of the yearly Server Hosting costs for all of Wikipedia.

What does all this mean?

Regardless of what any of us think about the specific political spending of Wikimedia, one thing is crystal clear:

A significant portion of donations -- solicited for the stated purpose of the running of Wikipedia -- are being spent furthing political goals.  Not on running Wikipedia.  All while Wikipedia is claiming to be barely surviving.

And Wikimedia is getting rich in the process.


Like this type of 100% independent Tech reporting?  Be sure to subscribe to Lunduke.Locals.com.  Even a free account is a good idea.

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Editor of OSNews calls for the murder of a Conservative, Jewish Tech Journalist
Leftist Extremist OSNews says Lunduke is "Nazi" who must "die".

The Editor of OSNews.com has declared that I, Lunduke, am a member of the Nazi party -- and encourages others to murder me.

I repeat: A Tech Journalist has stated -- as a matter of fact -- that a proud Jewish man is a Nazi that must be killed.

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A few hours later, the OSNews.com Editor followed up with the following statement:

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No quarter for nazis. The only good nazi is a dead nazi."

 

Source: Mastodon

 

"No quarter for nazis. The only good nazi is a dead nazi."

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Which means, according to the Editor of OSNews, "The only good [Lunduke] is a dead [Lunduke]."

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He also appears to be stating that anyone who simply exists on the same server as me is, by proximity, also a Nazi.  And they must also be murdered.

Few Will Condemn This

I wish I could say this was a completely isolated incident.

The sad fact is, a number of Tech Journalists share the extreme, Leftist, disturbed, violent views of the Editor of OSNews.  They believe that many groups (including both Conservatives and Jews) are evil "Nazis" who must be murdered.

And, while many other Tech Journalists do not agree with those warped, twisted ideas... few, if any, will speak out against those calls for violence and death.

All Hope Is Not Lost

In those vile messages quoted above, the Editor of OSNews was clearly attempting to bully the administrator of a specific server -- whose only crime was allowing me to exist.

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Source: Mastodon

 

No name-calling.  Present evidence if you have a concern.

Reasonable.  Calm.  Practical.

Seeing that sort of response gave me just a little extra hope for the future of the Open Source and general computer industries.  If we can get more brave, reasonable, thoughtful people -- like that server administrator -- speaking against the hate and violence of people like the Editor of OSNews... we might just stand a chance.

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A Related Thought From Lunduke

Let's pause, and take a step back.  I'd like to talk, for just a moment, about politically charged discussions (like this one) within the broader Tech World... and on The Lunduke Journal specifically.

When I first started The Lunduke Journal, I focused entirely on the technical aspects of computing.  "Stay clear of politics, Lunduke," I told myself.  "Stick to the happy tech stuff!"

And, by and large, I managed to stay true to that for many years (with no more than a passing, momentary blip into politically charged topics once in a blue moon).

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At a time when people are being banned from Open Source projects solely because of their political leanings (often leading to the complete destruction of those projects).  When entire Open Source organizations and concepts are being re-shaped -- into something not-at-all "Open" -- by political activists.  When Big Tech corporations are regularly discriminating against people based on the color of their skin or their sex.

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Because I love computing.  I love the history of it, the technical aspects, the future... all of it.  And computing is worth saving.

So, I will keep covering all of it.  Even if these extremists keep threatening to kill me.

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Open Source AI Definition: Not Open, Built by DEI, Funded by Big Tech
Run by an "Anti-Racist, Decolonizing" Activist, the new Open Source Definition is anything but Open

The Open Source Initiative is preparing to finalize what they call "The Open Source Aritificial Intelligence Definition" -- a set of rules which A.I. systems must adhere to in order to be considered, officially, "Open Source".

And everything about it is truly peculiar.

From the fact that it considers "No Data" to be "Open Data" (yeah, try to wrap your brain around that little nugget) to the corporate sponsorship (from corporations in the "Closed Source A.I." business)... to the "anti-racist, decolonizing" consultant they hired to put the whole thing together.

Yeah.  "Decolonizing".  The whole thing is just plain weird.

A Little Background

The Open Source Initiative's cliam to fame is that they are the steward of what is known as the "Open Source Definition" (aka "the OSD").  A set of rules which any software license must adhere to in order to be considred, officially, "Open Source".

The "OSD" began life back in 1997 as the "Debian Free Software Guidelines", written by Bruce Perens.  Later, with the help of Eric Raymond, that document morphed into the "Open Source Definition"... at which point the two men created the "Open Source Initiative" to act as a certification body for the OSD.

Fun Historical Tidbit: The Open Source Initiative likes to tell a long-debunked story about the creation of the term "Open Source" which they know is historically incorrect.  That little tidbit isn't critical to what we're talking about today... but it's just plain weird, right?

Flash forward to today, and both of the founders -- Perens and Raymond -- have been forced out or banned from the Open Source Initiative entirely.  Now the organization, free from the influence of the founders, is looking to expand into the newly exciting field of "Artificial Intelligence".

Thus: The creation of "The Open Source A.I. Definition"... or the OSAID.

The Anti-Racist Leadership

To create this new "OSAID", the Open Source Initiative hired Mer Joyce from the consulting agency known as "Do Big Good".

 

Mer Joyce: Process Facilitator for the Open Source AI Definition

 

Why, specifically, was Mer Joyce hired to lead the effort to create a brand new "Open Source" definition, specifically focused on Artificial Intelligence?

  • Was it her extensive background in Open Source?
  • Or her expertise in A.I. related topics?
  • Perhaps it was simply her many years of work in software, in general?

Nope.  It was none of those things.  Because, in fact, Mer Joyce appears to have approximately zero experience in any of those areas.

In fact, the stated reason that Mer Joyce was chosen to create this Open Source definition is, and I quote:

 

"[Mer Joyce] has worked for over a decade at the intersection of research, policy, innovation and social change."

 

Her work experience appears to be mostly focused on Leftist political activism and working on Democrat political campaigns.

As for the consulting agancy, Do Big Good, their focus appears to be equally... non-technical.  With a focus on "creating an equitable and sustainable world" and "inclusion".

 

The "Values" of "Do Big Good".

 

When "Do Big Good" talks about what skils and expertise they bring to a project, they mention things such as:

  • Center marginalized and excluded voices.
  • Embody anti-racist, feminist, and decolonizing values.
  • Practice Cultural humility.

 

How "Do Big Good" works.

 

Note: Yes.  They wrote "decolonalizing".  Which is not a real word.  We're going to give them the benefit of the doubt and assume they meant "decolonizing".  Spelling errors happen.

Now, how does "Embodying decolonizing values" help to draft a definition of Open Source Artificial Intelligence licensing?

No clue.  But, apparently, "decolonizing" and being "anti-racist" is important to the Open Source Definition and software licensing.

You'll note that the only software-related skill this "Do Big Good" company appears to have is that they can "work virtually or in-person".  In other words: They know how to use Zoom.

In fact, this consulting firm only gives three examples of client projects they've worked on.  And the other two are non-technical policy documents for the government of Washington State.

 

The other work of "Do Big Good".

 

Why this agency, and this individual, was hired to lead the work on the OSAID is beyond baffling.  Just the same, this appears to be part of a larger pattern within Open Source and Big Tech: Hiring non-technical, political activist types to lead highly technical projects.  It doesn't usually go well.

The Diverse Working Groups

Considering that the leadership hired to oversee the OSAID's creation is extremely non-technical --  and almost 100% focused on "anti-racist" and "decolonizing" activism -- it's no surprise that one of the first steps taken was to create "working groups" based entirely on skin color and gender identity.

 

"The next step was the formation of four working groups to initially analyze four different AI systems and their components. To achieve better representation, special attention was given to diversity, equity and inclusion. Over 50% of the working group participants are people of color, 30% are black, 75% were born outside the US, and 25% are women, trans or nonbinary."

 

What does having "25% of the people being Trans or nonbinary" have to do with creating a rule-set for software licensing?

Your guess is as good as mine.

But, from the very start of the OSAID's drafting, the focus was not on "creating the best Open Source AI Definition possible"... it was on, and I quote, "diversity, equity and inclusion".

The best and brightest?  Not important.  Meritocracy?  Thrown out the window.

Implement highly racist "skin color quotas" in the name of "DEI"?  You bet!  Lots of that!

"No Data" = "Open Data"

With that in mind, perhaps it is no surprise that the OSAID is turning out... rather bizarre.

Case in point: The OSAID declares that the complete absence of the data used to train an A.I. system... does, in fact, qualify as "Open".  No data... is considered... open data.

If that sounds a bit weird to you, you're not alone.

Let's back up for a moment to give a higher level understanding of the components of an A.I. system:

  1. The Source Code
  2. The Training Data
  3. The Model Parameters

If you have access to all three of those items, you can re-create an A.I. system.

Now, we already have the OSD (the Open Source Definition) which covers the source code part.  Which means the whole purpose of having the OSAID (the Open Source AI Definition) is to cover the other two components: The Training Data and the Model Parameters.

Without an exact copy of the Training Data used in an A.I. system, it becomes impossible to re-create that A.I. system.  It's simply how the current generation of A.I. works.

However, the OSAID does not require that the Training Data be made available at all.  The definition simply requires that:

 

"Sufficiently detailed information about the data used to train the system, so that a skilled person can recreate a substantially equivalent system using the same or similar data."

 

At first that sounds pretty reasonable... until you really think about what it means.

This means that an A.I. system would be considered "Open Source A.I." even if it provided zero data used to train it -- it simply must be possible for someone to use the closed, proprietary data... if they should happen to obtain it.

That's like saying "My software is open source.  But I'm not going to let you have the source code.  But, if you did get the source code -- like through espionage or something -- you'd be able to use it.  Which means it's open source.  But you can't distribute or modify that source.  Because it's mine."

Now, an argument could be made that the source code for an AI system could be open even if the data is all closed... and, therefor, it would be "Open Source" under the old OSD.  Which is absolutely true.  But, in that case, why have an "OSAID" at all?  Why not simply keep the existing OSD and focus on that?

Well... I think we have a simple answer to why this OSAID is so utterly strange...

The Corporate Sponsors

The Open Source Initiative is not a huge foundation, especially when compared to some.  But it's revenue is not insignificant.  And it's growing.

In 2023, the Open Source Initiative brought in a revenue of $786,000 -- up roughly $200,000 from the year prior.

 

Source: Open Source Initaitive 2023 Annual Report

 

And who sponsors the Open Source Initiative?

Google.  Amazon.  Meta.  Microsoft (and GitHub).  Red Hat.  And many other corporations. 

 

A Sampling of the Open Source Initiative Sponsors.

 

 

Many of these companies have some noteworthy things in common:

  • They are in the A.I. business in some way.
  • They make use of "Open Source" in their A.I. products.
  • They use "Open Source" as a promotional and public relations tool.
  • They, in one way or another, work with a closed, proprietary set of A.I. training data.
  • They have significant "Diversity, Equity, and Inclusion" efforts.

When you add that all together, this "Open Source AI Definition" begins to make a lot more sense.

It is, in short:

An effort to create a "Certification" which will declare all of their A.I. systems (no matter how closed their data is) as "Open Source"... while simultaneously being run by a DEI activist organization with a focus on racial and gender identity quotas.

It checks a whole lot of check boxes.  All at once.

What Impact Will This Have?

While many may argue that this "OSAID" is simply irrelevant -- and can be ignored by the broader "Free and Open Source Software" industry -- that misses a key impact that is worth noting.

That being: The continued corruption of both the ideas and the organizations of Open Source.

Not only has the Open Source Initiative banned their founding members (and re-written their own history)... they are now seeking to create a new "Open Source Definition" which will allow for systems consisting primarily of closed, proprietary data to be considered "Open Source".  Thus making their Big Tech financiers happy.

The meaning of the term "Open Source" is being actively modified to mean "A little open, and a lot closed".  And many of the same corproations which are funding this effort are also funding things like... The Linux Foundation.

Which means this corruption and dilution of the concept of "Open Source" is likely to spread far beyond the reaches of one, small (but growing) licensing certification foundation.

Also, apparently, decolonizing values... or something.

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