Date: Thu, 25 Jan 2001 00:00:28 -0600 (EST) From: Jason Haas <jhaas@linuxppc.com> To: news@macgeeks.com, pr@macintouch.com, news@maccentral.com, pr@ogrady.com, Subject: [Announce] LinuxPPC to become a non-profit organization LinuxPPC to become a non-profit organization Move will strengthen LinuxPPC operating system and community January 25, 2001 -- WAUKESHA, WI LinuxPPC Inc. has formally announced its plans to become a non-profit organization (NPO). The NPO will focus on the development and promotion of the Linux operating system on the PowerPC processor. It will also be better able to support the growth and development of the operating system. Transition marks a return to LinuxPPC¹s roots Like many other free software projects, the LinuxPPC operating system was largely built by volunteers. Non-profit organizations are designed to organize such efforts, rather than have a for-profit corporation controlling it. Original intent of company founders being fulfilled In 1996, Jeff Carr registered the linuxppc.org domain with the intention of creating a not-for-profit organization. However, LinuxPPC Inc. was formally created in 1997 as a for-profit corporation because it was less difficult and less expensive than creating a NPO. Since that time, it was feared that a NPO would fail to keep up with the apparently burgeoning ".com" sector. LinuxPPC Inc. was very careful not to take on any investors. Luckily, it was able to survive without taking on investors, and turned down several offers. With the recent collapse of that sector, becoming a not-for-profit organization seems to be a safe and logical move. Advantages of being a NPO There are myriad advantages to being a non-profit organization. Unlike a for-profit corporation, contributions and donations to a NPO cannot be used as distributions to the owners. This guarantees that the donated resources go directly to the benefit of the NPO¹s mission. As a not-for-profit organization has no stock or shareholders, there is a much more even distribution of power and control. Many of the ideas and principles of non-profit organizations perfectly match the ideas and principles of the free software movement. With that in mind, becoming a NPO is a natural step in LinuxPPC¹s evolution. Disadvantages of being a NPO One potential disadvantage of being a non-profit organization is the lack of investment and venture capitol. Investors are not interested in investing in something that will not yield any return, and there is no return on investment with free software development, and. Thus the normal advantage to being for-profit corporation is inapplicable. However, many people are willing to donate money to support free software development. For example, LinuxPPC users have donated over $20,000 to the Free Software Foundation and Linux International, two organizations dedicated to promoting free software. Donations from LinuxPPC also expected to become more frequent Over the course of its history, LinuxPPC Inc. has made many hardware donations to Linux developers. These donations have often resulted in software being ported to LinuxPPC, and were crucial moves in making Linux compatible with certain Apple computers. The most important donation was probably the donation of an iMac to kernel developer Paul Mackerras. Prior to this donation, the iMac was not able to boot Linux. Within weeks of the donation, the iMac became compatible with Linux. In the past, the company has donated PowerBook G3, Power Mac G3, and Power Mac G4 computers to kernel developers. All of these led to the machines becoming more compatible with Linux. In the application realm, the company donated an iMac to the AbiSource project, ensuring that AbiSuite is ported to LinuxPPC. Transition expected to take several months Given the amount of planning and pre-transition effort involved in becoming NPO, LinuxPPC probably will not become a non-profit organization for several months. When the transition if made, LinuxPPC Inc.¹s services and assets to be taken over by the organization. There will be no disruption in services in the meantime. About LinuxPPC Inc. LinuxPPC Inc., headquartered in Waukesha, Wisconsin, develops and distributes the most popular Linux distribution for PowerPC computers. Formally incorporated in 1997, the company has been making Linux for the PowerPC for more than three years. The company sponsors development of Linux on PowerPC through hardware donations and developer sponsorships. The company is a member of Linux International and the Motorola Computer Group Partner Program. Contact Information LinuxPPC Inc. 262-436-2000 http://www.linuxppc.com/ PowerPC is a trademark of International Business Machines Corporation and is used under license therefrom. Linux is a registered trademark of Linus Torvalds.