The Freecycle Network's current annual budget is running at about $140,000 in income. The funding comes from corporate underwriting, on-site advertising (in the form of a Google sponsor bar), grants and individual donations. Approximately 90% of these funds are used directly for program expenses. The remaining 10% is split evenly between membership, fundraising and other administrative expenses. Our IRS 990s are posted at the hotlink below as well as on Guidestar.com. We are delighted to report that we have now received our 501(c)3 status from the IRS (11/06) and that donations to The Freecycle Network are tax-deductible! We likewise are a charity in the UK. Further, we are registered as a nonprofit corporation in the State of Arizona. Tax deductibility is retroactive to our application date in July of 2004.
Our expenses of about $130,000 are mainly in the paying of four individuals and the maintenance of our current website and design of the new community. These individuals include the executive director, two contractors responsible for the current web community and one contractor for the new website design project. We have several servers to this end, coding expense and related site-design expenses. We also are incurring substantial legal expense, primarily in defending our trademark.
Our model is much like that of PBS. We seek to provide a free public forum for our members, and seek grants, underwriting and voluntary donations to fund these efforts. It's a rather unique model for a website, but The Freecycle Network is a unique organization. As we further develop community reuse and recycling on a globally local scale in over 70 countries we are creating a global gift economy in the process. Simply beautiful how one can change the world, one gift at a time.