#do not keep that status

So, there is a postcirculating and harping on the don’t donate to Ao3 again.  I thought about replying to it directly, but I really didn’t want to give it more attention. While they have done some research into past 990 forms, they are being very irate about a figure of about 13,000 for Management & Administrative because the Non-Profit staff doesn’t get paid and fear-mongering that the higher ups are embezzling the money instead of putting it to good use.

Now, I cannot speak to server costs and the massive scalability increase needed for the newer requirements especially in these Covid-era years.  Although, I know as a writer and reader on Ao3 myself, I know that Ao3 has made lots of improvements since this time.

However, the linked post OP seems to fundamentally miss something very important, something which I assume most people in the general public do not even need to know exists.  That 13,000 cost and category looks like it could absolutely be a Non-Profit accountant, which is a very specialized niche of accountant who knows the tax code relevant to Non-Profits and who make sure all of the accounts meet the legal requirements and the organization wouldn’t lose that hard won Non-Profit status.

Now, I myself would be very in the dark were it not for the fact that I personally was a treasurer for a much smaller non-profit for about 3-4 years nearly a decade ago.  That means I didn’t get paid for the hundreds of hours of my timing tracking all of the financials for my group.  However, you better believe even a small organization like ours shelled out about $7,000 (during my tenure) to have that accountant with the right expertise vet all my work and handle all coordination between the federal and state tax authorities, even though we were also a group that never broke past about $200,000 revenue/income mark at the time.  (My memory on what the exact thresholds were or are now is fuzzy at best.)  Since Ao3 is seeing numbers in the millions, that larger dollar figure raised explicitly requires more time (and cost) intensive level of scrutiny by the accountant to ensure auditing compliance of all records submitted to the tax authorities. 

The one complaint review cited on Guidestar (of a past BoD member in 2014) talks about the functional sunshine requirements and visibility.  This likely expense 100% speaks to make sure they are doing everything right and above board.

Now, obviously I cannot confirm that Ao3 doesn’t have some tax accountant volunteer who is out there somewhere doing this work pro-bono (as nearly all the all-volunteer staff clearly does.)  However, it is just one very expensive line item that comes to mind off hand that most people are not aware is not just required, but is essential to ensuring the organization continues to serve its users as intended.  

The 990 form will never be that detailed, as they are intended to provide a big picture view to the public (and the authorities, of course).  However, that detail is there behind the scenes and is going to be vetted in incredible depth to ensure the organization is properly serving the public.