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Comment by cm2012

18 hours ago

Everyone wants a piece of the wikipedia gravy train.

In 2010: Wikimedia Foundation annual expenses were about $20m

In 2025: Wikimedia Foundation annual expenses are about $200m

The story of Wikipedia of the last 10 years especially is endlessly higher spending for a very stable number of monthly users (1.5b or so). You can make the case that 80% of this spend is not necessary to what the average users donating to Wikipedia think of as "wikipedia".

It makes sense for the employees to want to lock in their share of the bag.

> It makes sense for the employees to want to lock in their share of the bag.

That's the problem, isn't it? Suppose that e.g. Wikipedia traffic is down year over year because of AI summaries and then they get fewer donations. Now something needs to be cut. It's a non-profit so "investor profit" can't be that thing.

If you then also make it so that it can't be workers, what's left? It's mostly either spending down savings (which isn't long-term sustainable) or sacrificing things that ought not to be, like infrastructure or servicing technical debt. So now you've put off a given percentage of layoffs for a few years until that catches up to you and sinks the whole foundation.

  • > It's a non-profit so "investor profit" can't be that thing

    Non-profits get corrupted through spending on well-connected vendors.

  • One option would have been to stay small. Keep the yearly spend down where it was in 2010, don't hire too many more people, and save all the donation money they brought in. Build that fund in the good years to pay for salaries in the lean years.

    • Wikimedia foundation actually have a rather large endowment¹ set up from donated funds to help sustain the organization through a hypothetical future downturn. I'm sure it wouldn't sustain the current level of spending but it would theoretically cover minimal operating expenses.

      There are a lot of things to criticize about Wikipedia but lack of financial planning probably isn't top of the list.

      1. https://wikimediaendowment.org/

      1 reply →

    • >One option would have been to stay small. Keep the yearly spend down where it was in 2010

      And what are the realistic chances of that actually sticking long term?

      Same chance as corporations and governments keeping spending, corruption and cronyism under control long term. So, virtually zero.

  • > you then also make it so that it can't be workers, what's left?

    What was the core reason that readers gave donations? Probably most donors want employees treated well and to ideally keep their jobs, and yet the main thing they probably had in mind was the existence and continuation of the service itself.

  • The infrastructure isn't that much. If they need to be less ambitious about other projects I'm not going to worry about it. A union isn't going to make them keep every single project.

    If they were paying each employee 10x as much, and that got locked in, and then they didn't have the money to pay them, there would be bad consequences. But that's not what's going on here.

    • The infrastructure isn't that much is the problem, because labor costs are the largest single expense. When you take that off the table as something that can be cut, you're then stuck needing to make up the difference from the things that never cost that much to begin with, which means the cuts you have to make to them to make up the same amount of shortfall are deep.

      > If they were paying each employee 10x as much

      They're presumably paying the market rate either way. The issue is, what happens if they need to reduce the number of employees? Or they have too many front end developers and not enough back end administrators or vice versa, and then need to let some people go and hire others with a different skill set?

      2 replies →

Half of that goes to wages and salary for ~650 staff members. Of the ~114M that goes to wages, 90M goes to people working directly on projects, 15M goes to admin/management, and the other 9M goes to people in fundraising/financials.

9M goes to paying donation processing fees.

3.5M goes towards network infra.

~2M of in-kind services were donated (i.e. doing free work or donating goods) and that shows up as a dedicated expense.

Professional Services (accounting, consulting, etc) make up another 15M (same as the total management/admin cost).

General operating expenses (property, taxes, office software, office equipment, etc) make up 8M.

Conference and Travel is 6M.

And then 4.5M is expensed as depreciation and amortization of owned assets.

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So to be entirely clear here. WMF projects make up 147M / over three quarters of the total expenses for the year. Fundraising makes up 20M all together (half being essentially fees and the other half is people running fundraising campaigns). And the remaining 21M / 11% is general admin.

11% is quite good for such a large foundation.

And if you want to nail down into it that 75% for projects is going towards a lot of engineering work to support long standing gripes with wikipedia's tooling and infra.

https://wikimediafoundation.org/annualreports/2024-2025-annu...

https://meta.wikimedia.org/wiki/Wikimedia_Foundation_reports...

https://meta.wikimedia.org/wiki/Wikimedia_Foundation_Annual_...

  • > And if you want to nail down into it that 75% for projects is going towards a lot of engineering work to support long standing gripes with wikipedia's tooling and infra.

    I do not believe it's possible to spend that much money on those things in an effective way.

    • You can see the breakdowns of what goes where in the links I included.

      Half goes directly to engineering and support for infra. ~17% goes to equity projects. ~10% goes to safety & integrity. And the remaining 23% goes to "effectiveness" goaled projects.

      The projects in the equity category are focused on supporting various smaller language Wikipedia communities get established and cross-translate articles.

      The safety and integrity projects put a lot of work into protecting volunteers well being, general moderation stuff, legal compliance, etc.

      The effectiveness category is a little weirder but it's mostly various "experimental" projects that attempt to address longstanding issues across the WMF without forcing them under a particular sub-org's budget potentially taking away funding from essential services.

      NGL They could cut back across the board in various ways and save some money but if they have the money (and they do), I don't see anything outright wasteful that they are spending on. Everything seems pretty clearly like hedged bets to make things gradually better for the future.

      And notably these are expenses. There's a gap between expenses and revenue and all that extra revenue gets invested into the endowment, etc to gradually support more and more of their operating expenses with time.

  • Thank you for breaking this down. Every time Wikipedia comes up the exact comment parent to yours is posted in some form.

    This comment and all its flavors is posted by a contingent of people out there who:

    1. Think that Wikimedia is a wasteful, corrupt organization full of greedy employees (I guess that could be true? Doesn't seem that greedy to me given that they've never run an advertisement or enshittified their product)

    2. Think that Wikimedia should operate more similarly to a for-profit organization with investors (e.g., it should start downsizing and stop investing in its platform because it stopped growing in MAUs)

    3. Think that Wikimedia is being financially irresponsible and will run out of money (even though their own data shows that donations have grown faster than expenses)

    I think we can just accept that Wikipedia gets a lot of donations and has the luxury of hiring people. And they really don't have that many employees given their traffic.

    I don't get upset that my local art museum can buy better art when they get more donations even though the same number of people visit the museum every year. The people who donate to Wikipedia want more money to go into Wikipedia.

    • This completely supports 1. The extremely useful website provides the funding for all the much less useful efforts.

      And of course it’s not immoral greedy people. It’s ordinary greedy people who like comfort, security, and doing interesting work.

      And yes the admins want more money so they can do more projects and have more people work for them. And that’s also a kind of greed for status and importance that people who work in admin typically have.

    • I doubt most people have put that much thought into it. However, a $100M a year for a website with an amount of traffic that isn't absurd, pages which are largely static, and doesn't have to secure financial transactions, seems a bit high to many people. Its that coupled with the constant requests for donations that doesn't match in most people's heads. For that amount of money, I expect most people think they can accomplish a lot more than the wiki foundation does. I expect that's most of where the criticism comes from, not the ideological attacks you are claiming.

  • 6 million dollars in conferences sounds like a lot? Are they holding the conference?

    • It's for travel and conferences. IIUI this includes dedicated Wikimedia photographers that attend events and/or travel around the world to take royalty free/CC licensed photos for Wikipedia articles to use.

      Long term it's far cheaper and gets you more, higher quality images than trying to hunt down images and negotiate license terms on each one.

      1 reply →

  • And all of that (along with the serious problems in how WMF/Wikipedia operate) is why I no longer donate to WMF.

    Clearly, they don't need my money. But if they ever want to bring me back into the fold, they need to adopt Larry Sanger's prescriptions. This unionization seems likely to push WMF (IMO) further in the wrong direction.

    • I think all employees should work for a union. My local art museum has a union. My local school system has a union. The non-profit university I graduated from has a union. Why shouldn't WMF have a union?

      I really don't understand the bitterness toward them. If you look at their data, their donations are growing faster than their expenses.

      The people who donate to Wikipedia/WMF want more money to go into the organization. That's the whole point of the donation. What else do you want them to do with the money exactly?

      7 replies →

> very stable number of monthly users

Wikipedia has seen their traffic decline with AI eating more and more of their lunch. I imagine it’ll only accelerate from here.

Agents are increasingly accessing Wikipedia, but do not make donations.

There will be a lot of belt tightening at the foundation in the coming years.

  • >Agents are increasingly accessing Wikipedia, but do not make donations.

    Irrelevant when donations from humans keep growing YoY way outpacing the actual expenses of running wikipedia. Half of people can stop donating tomorrow and they still would have enough money.

    Having internet on your PC and your phone on the go didn't kill off the library, people still go there. Similarly, LLMs won't kill online libraries like Wikipedia.

So 1/40 of Reuters annual revenues, 1/1000 of Facebook annual revenues, is being wasted on ... lobbying governments against internet censorship and cross-subsidising translations into less popular languages?

How dare the most useful human knowledge resource spend the money freely given to it in such a way!

The 'Wikipedia is spending your donations on DEI' conspiracy has run its course I think.

Exactly. The WMF spending growth is completely decoupled from its effect on Wikipedia. This only works because the donations pop-up makes people think they are donating to Wikipedia, not to a foundation which mostly does totally unrelated stuff. There is no feedback loop which would limit this spending toward the core aspects of Wikipedia.

>In 2025: Wikimedia Foundation annual expenses are about $200m

Am I correct in understanding, the $200M annual spend include the salary of those workers. And in case of any mass layoffs incoming, they are forming an union to better bargain?

  • I don't think the union is motivated by fear of mass layoffs. Staff simply want some venue for solidarity and meaningful channels to have their grievances heard and by management without fear of retaliation. What I have gathered is that there have been some very questionable management decisions and arbitrary firings of people for reasons other than job performance. One specific case which appears to be reprisal for raising concerns about questionable/unethical behavior of certain senior management.

    Discussions of unionization have been ongoing for many years, they only gained momentum recently due to the some recent events that, AFAIK, have very little to do with overall job security or any threat from economic forces or AI eating Wikipedia's lunch.

Worst is that there is zero interest to deal with sock puppet accounts, state actors or just typical cliques

I saw a pair of an admin and other person (probably sock puppet) that were used for edit wars, the 2nd account was used to ban edits, especially from non registered users.

This is 95% of all NGOs and their ilk.

Related:

"We now have evidence of how at least $7.7 billion for homelessness was spent on salaries. They created a jobs program that grows at the expense of the actual homeless who need help instead of helping the homeless."

https://x.com/Twolfrecovery/status/2095661343215141026

  • Levels of waste in NGOs are a fully fair subject for debate but without context an arbitrary number is only misleading and therefore sadly cynical.

    Also - you have no evidence for '95% of NGO's and their ilk'.

    This is not Twitter.

    • Please remember that NGOs are not charities. And the entire point of an NGO is to get around restrictions on what governments can do. I think most of the grips about NGOs comes from the selling of NGOs as charities which they very much are not. They are however, taxed in the same way as charities and donate significant amounts to political campaigns (mostly local and state level).

      So they get around centuries old restrictions on governments, get taxed like charities and donate heavily to political campaigns. That set of properties can and should draw significant criticism. When you act like they are charities, it just makes you seem naive. If they were charities, they would call themselves charities.

      3 replies →

> In 2010: Wikimedia Foundation annual expenses were about $20m

The numbers are worse than that. FY2009-10 expenses were $10.3M. FY2024-25: $190.9M. 19x increase in fifteen years.

  https://en.wikipedia.org/wiki/Wikipedia:Fundraising_statistics

Salaries alone were $106.9M last year (from the Foundation's own Form 990 FAQ). And it's not as if the money is needed: the Foundation holds $296M in assets, plus a further $169M in a separate endowment.

Wikipedia's own editors held an RfC in 2022 and found "broad, near-unanimous consensus" that the donation banners were misleading - the ones hinting the site might go dark without your £2.

  https://slate.com/technology/2022/12/wikipedia-wikimedia-foundation-donate.html

The spending grew anyway. What do donors clicking those banners imagine they're funding?

yea...200m is totally a gravey train.

Do you live in the same universe where elon musk was work 1 trillion?