I wholly endorse @malemburg’s observations and suggestions.
When I first heard about the pause, I was astonished. In my years on the first 13 Boards (some of which overlapped with @malemburg’s), there was no grants working group. The Board accepted or rejected each grant proposal individually. When a Board meeting started, we knew the precise grant budget remaining, and when it ended it was a simple matter of subtraction to reduce it by the total of grants accepted during that meeting. “Over budget surprises” were simply impossible. Note the “surprise” part of that. Going over budget was certainly possible, but spending more than we had on hand was a deliberate choice, made with eyes wide open. We always knew exactly how much of the budget remained, second by second.
Things are more complex now in several ways, and the grants working group apparently has some level of independent (of the Board) spending authority now, but the basics of budgeting haven’t changed: X dollars in and Y dollars out is trouble when Y exceeds X, and in grants there is total control over Y. There’s isn’t, e.g., an act of God that can force grants to be made. “Acts of God” can affect X. For example, in my days we were always just one PyCon away from potential bankruptcy, and the PSF has no direct control over income sources, weather, terrorist acts, recessions, pandemics, changes in government policies, …
The most fiscally defensive approach is to budget for no more than a fixed amount of cash on hand in the bank at the start of a fiscal year. If income is higher than anticipated, great, you can increase the grants budget if that seems best. But if it’s lower than anticipated, that doesn’t affect the cash that was already set aside for the budget.
“More contributions” isn’t the answer. Spending always needs to be rigorously tracked and controlled, as requests for grants will always grow to exceed contributions.
I appreciate that this is especially difficult for the PSF to “stomach”, as it gets many requests for relatively small grants, almost none of which is a “budget buster” on its own, and almost all which it would like to grant. Effective budgeting is not a job for “nice people”
. It needs hard-headed accountants and “business types” in charge of it.