OWASP 2021 Budget
In 2021, we are forecasting a small net loss of $94k, with a budgeted income of $1,408,433 (down 36.5% from $2,218,745 in 2020), and expenses of $1,502,878 (down 31.8% from $2,202,512 in 2020). COVID has been an especially challenging time for the OWASP Foundation, which prides itself on spending on mission per non-profit best practices. Our goal is to keep expenses and overheads as low as we can, enhance delivery of our mission through fundamental finance and policy reform, and diversify our income sources dramatically, whilst adding many new sources of income.
2020 Financial Performance
OWASP exceeded the revised COVID era Budget Model Z targets by over $316,000, and we made a small profit for the year. Despite this, in 2020, OWASP has had a income reduction of 37.5% year on year over 2019. As a result, we had to take drastic action to reduce our costs to the bare minimum. We had to defer the two scheduled Global AppSecs, which in a normal year, pays for nearly all of OWASP’s expenses and allows us to save for the future.
2021 Income Forecast
In 2021, we forecast a very conservative income stream based around the activity and earnings of the latter part of 2020. As this is a conservative forecast, we need to add new lines of business, merchandise, fundraising, grant seeking, donations, increase corporate and individual memberships, and to run sufficient numbers of virtual events to try to plug the gap in our income created by not running any in person events in 2020 and 2021. We will be leaving no stone unturned as we look to new revenue sources and government relief throughout the year.
2021 Expenses Forecast
Shedding $700k in expenses in a single year is testament to the hard work and belt tightening by our staff and community since 2019. We will continue to keep a very close eye on expenses, and with finance reform, we are expecting lower administrative overheads and costs, which is required as the community returns to in person events and activities and starts spending to similar levels as 2019.
Future outlook
We plan on returning to two Global AppSec events in Dublin in June and San Francisco in October 2022, which will create pressure on the Foundation to pay some large deposits early in 2022, in return for hopefully a healthy profit and then financial recovery in 2023.
Charity Spending Guidelines
Generally, it is best practice for non-profits to spend at least 80% of their funding on “Programs” - with the goal of getting to 85% or better. The FY21 budget forecasts the OWASP Foundation will spend 68.1% of its funds on Programming. A major goal is to get this to 80% by increasing revenue and maintaining low expenses through out the year.
APPROVED by Board of Directors at the Special Board Meeting held on March 8, 2021
FY 2021
Income
Conferences
Registration
Global AppSec
Nov 2021 Global AppSec ............. $350,000
20th Anniversary Virtual Fall 2021 . $50,000
Regional Events
Australia Day ...................... $124,933
AppSec Days
LASCON 2021 ........................ $110,000
AppSec local/regional
Other Conferences
Lightening Conferences ................ $50,000
Brain Breaks ......................... $60,000
Call to Battle ........................ $12,000
To 7 Trainings ........................ $119,000
Grant income ................................ $10,000
Crowdfunding
Google Summer of Code ....................... $6,500
Bequests
Corporate Sponsorship ....................... $50,000
Membership
Individual ............................ $150,000
Corporate ............................. $200,000
Fundraising and Donations
Corporate ............................. $20,000
Individual ............................ $16,000
Merchandise (drop shipping) ................. $10,000
Trademark licensing ......................... $60,000
Online Training
Interest
Total Income ................................... $1,408,433
Expenses
Events Program
20th Anniversary Virtual Fall 2021 ....... $45,000
Global AppSec Virtual 2 .................. $75,000
Regional event
Australia Day ............................ $80,000
Set up ANZ entity ........................ $5,000
Staff .................................... $77,760
Eventbrite platform fees
Global AppSec Deferred Obligations
San Francisco Cancellation Contingency
Dublin cancellation contingency
Dublin deposit pre-paid expense
AppSec Days
LASCON ................................. $100,000
Brain Breaks ........................... $12,000
Lightening Conferences ................. $3,000
7 Trainings ............................ $49,000
Call to Battle ......................... $2,000
AppSec Days Seed Fund ..................... $36,000
Bonus/Commission .......................... $20,000
Projects and Technology Program
Project Virtual Summit (x2)
Online Books
Grants
Learning platform ......................... $10,000
Expenses .................................. $28,000
Awards
Scholarships
Marketing
Staff ..................................... $133,766
Project Platform fees ..................... $21,900
Outreach and Marketing Program
Outreach Virtual Event
Merchandise costs ......................... $5,000
Grants
CC fees for membership .................... $6,000
Awards
Scholarships
Marketing
Staff ..................................... $51,552
Local Partnerships
Global Partnerships
Online
Branding & Trademarks
Event Promotions
Public Relations/Marketing ................ $36,000
Chapters and Members Program
Grants
Expenses
Awards
Chapter pool/seed funds ................... $64,000
Scholarships
Membership rewards
Staff ..................................... $60,112
Local Events
Chapter Platform Fees ..................... $13,000
WIA, Diversity and Inclusion
Grants
Expenses
Awards
Scholarships
Marketing
Staff ..................................... $38,000
Local Events
WIA, Diversity and Inclusion Virtual Event (x2)
Education and Training
Grants
Expenses
Awards
Scholarships
Marketing
Staff ..................................... $46,189
Education Virtual Summit (x2)
General and Administrative
Travel
Board F2F Meetings (2x/yr.)
Projects Summit Travel Assistance
General Travel Assistance
Staff
Legal & Insurance ............................ $6,500
Trade Mark fees ........................... $16,500
Staffing
General & Administration-Staff ......... $208,800
Fundraising & Development-Staff ........ $90,000
Professional Services ........................ $111,000
Bank Service Charges ......................... $2,400
Other G&A
Software/Internet/Hosting .................... $36,000
Portal & Web ................................. $8,400
Replacement tech contingency
Bad Debt
Total Expenses .................................. $1,502,878
Profit / Loss ................................... $(94,446)
Quarterly Plan
Q1 Q2 Q3 Q4 Total
Income $186,750 $196,750 $193,250 $811,683 $1,388,433
Expenses $296,595 $308,095 $296,595 $591,595 $1,492,878
$(94,446)
Please note, compared to prior years, FY21 now apportions program management and staff costs to program delivery, which is aligned with common non-profit accounting practices, and also ensures that each program delivery area has an opporutnity to earn income, fundraising and sponsorships, rather than solely rely upon Foundation income from global events and event sponsorship.