Background
Pumping Station: One has from the start been primarily funded by member dues. Members are currently paying $65, with less than 10% doing work in lieu of dues (WILD). Out of currently 700+ members this means we can afford to pay rent on a 11,000 sq ft. space, maintain our infrastructure and tools, and occasionally buy new tools. We are also projected to be able to save and buy the building without any additional or outside funding.
PS:1's money is distributed for use by vote. Votes are run to authorize people to buy new tools, and traditionally a yearly vote is run to authorize Area Hosts to spend a fixed amount for the development and maintenance of their Area. Creating these budgets can be difficult, as the actual cost of maintenance can vary depending on a lot of factors. Typically Area Hosts spend less than their allocated amount every year, but occasionally they may need to spend more.
One of the most difficult things for Area Hosts to predict is the usage of 'consumables' -- for example, propane for the forge in Hot Metals or resin for the Specialty 3d Area. Consumables are purchased from the Area Host budget, and members who use significant amounts of consumables are encouraged to donate back to the space. Currently there is no method to donate directly to an Area Host's budget, so donations for consumables do not directly fund the purchase of more consumables. The more popular an area becomes, the more consumables get used. Even when all consumable use is matched by cash donation, the money allocated for the purchase of more consumables can run out. In that case, either the membership or the board needs to vote to authorize the additional funds, an inconvenience to everyone and embarrassment for the Area Host.
The yearly Budget Vote is organized to make it easier for Area Hosts who aren't accustomed to writing votes to get funding from the membership. When additional money is required, some Area Hosts may avoid the hassle and mental load of writing their own votes, and not put themselves before the membership. This creates a perverse incentive for Area Hosts to avoid excellence so that their Area is only as popular as their budget permits.
While the money required to buy the building is accumulating as planned, the more money we raise means we spend less on interest, a significant savings to the membership. Many members have made inroads finding additional revenue streams besides membership dues, such as seeking outside donations. Donors occasionally like to place stipulations on their philanthropy. While we generally discourage this, donations made to fund an Area or Club benefits the entirety PS:1. Money not spent from Area and Club budgets returns to the general pool at the end of the year. Improvements to Clubs and Areas serve to increase and retain dues-paying members, and are a benefit to the entire space.
Mechanics
Donations to individual areas are made through DonorBox https://donorbox.org/ Don't call anything a fund?
Synopsis
If a donation is earmarked for a particular Area or Boosted Club, the membership grants that Area Host or Boosted Club Host authorization to spend the amount of the donation in addition to the money already authorized by previous votes.
