{"id":599067,"date":"2025-06-18T16:07:06","date_gmt":"2025-06-18T14:07:06","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=599067"},"modified":"2025-06-18T16:14:24","modified_gmt":"2025-06-18T14:14:24","slug":"truth-about-donating-to-wikipedia","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/internet\/599067-truth-about-donating-to-wikipedia.html","title":{"rendered":"Truth about donating to Wikipedia"},"content":{"rendered":"\n

Wikipedia relies on donations from its users to fund most of its operations. However, a quick look at the company\u2019s financials makes the desperate tone in the donation banners seem disingenuous.<\/p>\n\n\n\n

Wikipedia was the brainchild of financial trader Jimmy Wales and philosopher Larry Sanger. In March 2000, they created Nupedia, a free online English encyclopedia with articles written by experts.<\/p>\n\n\n\n

After Wales defined the goal of creating an encyclopedia that anyone could edit, Sanger, Nupedia\u2019s editor-in-chief, proposed using a wiki, software designed for that type of open collaboration.<\/p>\n\n\n\n

This concept was proposed in a Nupedia newsletter in early 2001, and Wikipedia was launched on 15 January as a wiki feeder project.<\/p>\n\n\n\n

Eventually, given Wikipedia\u2019s rapid growth, Nupedia had its servers permanently taken down in 2003, and its content was incorporated into Wikipedia.<\/p>\n\n\n\n

That same year, the Wikimedia Foundation (WMF), the organisation responsible for hosting and funding Wikipedia, was founded.<\/p>\n\n\n\n

Following fears that the website would begin using commercial advertising, Wales announced it would not display ads, and the domain was changed from wikipedia.com to wikipedia.org<\/a>.<\/p>\n\n\n\n

However, the company needed capital to operate. According to WMF, it has primarily financed itself through donations from the public, using email campaigns and fundraising banners.<\/p>\n\n\n\n

It launched its first funding campaign in 2005 from 17 to 28 February, followed by another in August, and a third in December.<\/p>\n\n\n\n

Wales personally endorsed the final fundraising campaign of 2005, and his face appeared on banners across the site.<\/p>\n\n\n\n

WMF also receives grants from various tech companies and philanthropic organisations. However, these only started coming in in the late 2000s.<\/p>\n\n\n\n

\u201cThe Wikimedia Foundation is primarily funded by Wikipedia readers, which allows us to maintain our independence and ensure that Wikipedia is not influenced by outside financial interests,\u201d a WMF spokesperson told MyBroadband.<\/p>\n\n\n\n

\u201cThe remainder of our day-to-day funding comes from institutional grants and gifts as well as smaller revenue-generating projects, including the Wikipedia Store.\u201d<\/p>\n\n\n\n

Finances looking stable<\/h2>\n\n\n\n
\"\"\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
WMF expenses from 2004 to 2020<\/figcaption><\/figure>\n\n\n\n

According to a summary of WMF\u2019s revenue and expenses, its first few years saw it generate nearly double the money needed to cover its costs.<\/p>\n\n\n\n

In the 2003\/04 financial year, it generated $80,129 (R1.44 million) in revenue, comfortably covering its expenses of $23,463 (R421,630).<\/p>\n\n\n\n

By 2010\/11, it generated $24.8 million (R446 million), with $17.9 million (R322 million) in expenses and a $24.2 million (R435 million) net asset value.<\/p>\n\n\n\n

This trend has continued ever since, with expenses remaining well below revenue generated and net asset value rising, reaching $256.3 million by the end of the 2023\/24 financial year.<\/p>\n\n\n\n

In 2016, the WMF established the Wikimedia Endowment, a long-term fund \u201cto ensure the sustainability of Wikipedia and other Wikimedia projects.”<\/p>\n\n\n\n

According to its 2023\/24 FY financial reporting, the endowment was valued at $144 million.<\/p>\n\n\n\n

The same report provides a breakdown of the company\u2019s finances, with $168.2 million received from contributions and total support and revenue amounting to $185.4 million.<\/p>\n\n\n\n

As for expenses, it says Internet hosting costs $3.1 million, less than half of \u201cdonation processing expenses,\u201d which come in at $7.5 million.<\/p>\n\n\n\n

However, most of the money is allocated to \u201csalaries and benefits,\u201d which WMF says it pays $106.8 million.<\/p>\n\n\n\n

To better understand how it spends its money, MyBroadband contacted the WMF, which provided a breakdown for its 2024\/25 budget.<\/p>\n\n\n\n

Just under half of the $188.7 million budget, or $92.8 million, goes towards the foundation\u2019s product and technology work, and providing critical functions to support its basic operations.<\/p>\n\n\n\n

\u201cThis includes the costs of all of the teams that do this work, the cost of running our data centres, and more,\u201d it said.<\/p>\n\n\n\n

WMF told MyBroadband that it employs nearly 650 staff, most of whom work in product and technology. They ensure quick load times, secure connections, and better reading and editing experiences.<\/p>\n\n\n\n

It’s worth noting that Wikipedia receives over 15 billion page views monthly and is available in more than 300 languages.<\/p>\n\n\n\n

$44.7 million has been allocated to \u201ceffectiveness\u201d. The foundation said this involves \u201cfocusing on sustainability, streamlining employee engagement and effectiveness, and streamlining foundation processes.\u201d<\/p>\n\n\n\n

Another $32.8 million was allocated to enabling more people to share information on Wikipedia and other WMF projects.<\/p>\n\n\n\n

The final $18.5 million is allocated to \u201clegal efforts that protect free expression, prevent censorship, and advocate for laws and regulations that keep Wikipedia accessible for all to use.\u201d<\/p>\n\n\n\n

The foundation noted that it has a working capital policy that allows for a 12 to 18-month buffer should it encounter revenue shortfalls or unplanned expenses.<\/p>\n\n\n\n

Encouraging donations<\/h2>\n\n\n\n
\"\"\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
An example of a Wikipedia fundraising banner<\/figcaption><\/figure>\n\n\n\n

Considering that the WMF relies on donations to fund its operations, it is no surprise that banners appear frequently when users access the website.<\/p>\n\n\n\n

However, the tone of the banners\u2019 copy creates the impression that Wikimedia is much worse off than it is, with banners using phrases such as \u201cplease don\u2019t wait until tomorrow to help.\u201d<\/p>\n\n\n\n

Other banners include references to Wikipedia editors, contributors, and fact-checkers, whose \u201cdedication ensures that the information you seek is accurate and reliable.\u201d<\/p>\n\n\n\n

Given that these individuals are volunteers who contribute to Wikipedia without being compensated, it is curious that they are referred to when seeking donations.<\/p>\n\n\n\n

MyBroadband asked the WMF about the desperate tone used in its fundraising copy.<\/p>\n\n\n\n

It responded without directly addressing the questions, saying that the \u201cbanner messages are crafted with feedback from donors and volunteers who edit Wikipedia to ensure they\u2019re clear, accurate, and meaningful.\u201d<\/p>\n\n\n\n

While the WMF says that it needs these funds to keep the platforms running, Wikipedia\u2019s VP of engineering estimated in 2013 that it could comfortably operate for $10 million per year.<\/p>\n\n\n\n

Therefore, Andreas Kolbe, former co-editor-in-chief of The Signpost, a Wikipedia community newspaper, argues<\/a> that the WMF is raising funds to boost its savings and fund other projects.<\/p>\n\n\n\n

\u201cThe WMF\u2019s financial independence is clearly not at any risk. So what is going on?\u201d Kolbe says.<\/p>\n\n\n\n

\u201cThe official answer is that the WMF thinks you can never have too much money put aside for a rainy day.\u201d<\/p>\n\n\n\n

\u201cThe WMF also has high-flying, global plans to ‘become the essential infrastructure of the ecosystem of free knowledge’ by 2030,\u201d he continues.<\/p>\n","protected":false},"excerpt":{"rendered":"

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