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Is Free Republic a Fraud? Is it time for Free Republic to go away?
Free Republic | 11/28/01 | Jim Robinson

Posted on 11/28/2001 7:31:29 PM PST by Jim Robinson

Free Republic has had one helluva run over the last five years or so. We helped impeach one president and helped get another into office. We've been active in demonstrations and protests in nearly every city across the nation. We've participated in conventions, petition drives, activism campaigns and projects for dozens of conservative causes.

We've grown from a tiny web site with a few hundred posters and readers from the time of inception in 1996, to one with tens of thousands of participants today. Along the way we've made lots of great friends and, unfortunately, also made lots of bitter enemies.

We've grown from a small web site that I could manage myself on a part-time basis to a huge monster that has totally consumed all of my time and resources plus nearly all of John's time, plus the time and resources of many dedicated FReepers who volunteer or contribute large amounts of their own time and money.

The site is now consuming all of a 10 mbps dedicated line with two servers and we're still growing, and it consumes large amounts of money to keep all this running. In the early years, it only took a few thousand dollars per month to keep Free Republic on the air, but it is now costing over $20,000 per month to cover all expenses.

The major costs include approximately $8,000 per month for bandwidth, 3,000 for systems management and programming services, 7,000 for management, operating and administrative services, plus two or three thousand per month for miscellaneous office expenses, telephone, communications, repairs & maintenance, travel & lodging, postage, rentals, insurance, legal fees, accounting fees, etc., etc.

We anticipate a reduction in bandwidth costs next year as we renegotiate our contract (the market price for bandwidth has fallen recently), however, that will be more than offset by an expected increase in costs of our legal expenses. As most of you know, our pro bono attorney has left us and we've hired a new attorney to continue with our case, plus we have the suit against eschoir to pay for. My projections are that our regular monthly expenses for next year will be running in the neighborhood of $22,000 per month, or approximately $264,000 total for the year. This means we will need to raise approximately $66,000 per quarter.

Talking about making enemies, we've got several ex-FReepers and other detractors who are claiming on their anti-freeper web sites that I am ripping off the donors and that Free Republic is a fraud. Now, Free Republic is what it is, and it is definitely not a fraud. It is a conservative news discussion forum that encourages participation in politics and activism projects. It is not being billed as anything else. We are not selling or promising anything. And I am being up front about our operating costs. The costs of running Free Republic are what I've stated above and they are necessary to keep FR on the air. I do not have the financial wherewithal to operate this site without your help. If the majority of the FReepers feel that these costs are out of line or too much to bear or that Free Republic is no longer wanted or needed, then we will either cut it back or shut it down or do something altogether different.

I've also been criticized about not making our financials public. Well, the reason I do not want to do this is that I have been sued, both personally and as Free Republic, LLC. The people suing us want to bankrupt us and shut us down. They subpoenaed our financial records, but we refused to turn them over. The judge agreed that the plaintiffs have no right to the information, thus I have no intention of making any more of it public than I absolutely have to, until this lawsuit is resolved. You all know the amounts of money we raise if you follow the fundraising threads. It is all above board and out in the open. The totals posted by BadJoe are usually pretty close to the actual cash received and the amounts expended are pretty close to the amounts projected. No one is getting rich here and no one is being ripped off. The funds raised are being used for the purposes stated, and that is keeping this website on the air and that's it. Nothing fraudulent about it. Those who want to help fund us freely do so with nothing expected in return. Those who do not want to contribute do not have to.

There was a thread running this morning where people were making all kinds of accusations about Free Republic "hiding the truth" or whatever. These accusations are being made by Chuck Allan and others and fall along the same line with the accusations being made by some of the earlier banees or AFers including Mojo, Inspector Harry Callahan, Arator, keep U.S. Sovereign, TKEman and others. Some of these people are existing FReepers and some are banned. I am going to reinstate Mojo, Inspector Harry Callahan and Arator's accounts so they can join Chuck Allan, TKEman, K.U.S.S. and whomever else wants to get involved, and I invite them to come onto this thread and make their accusations public. As long as they do not go onto other threads and make a nuisance of themselves, I will let them have their say.

Like I said above, if it is time for Free Republic to go away so be it. Those who want to keep it going speak up. Those who want it to go away, tell us why. But if those who want it to be gone lose out in the debate, then I'd say they should just go away themselves, or, in the very least, shut up and quit whining about it.

Thanks,

Jim


TOPICS: Activism/Chapters; Announcements; Breaking News
KEYWORDS: bushbabeslist; enviralists; hughhewitt; jimroblist; opuslist; usocanteen; zionist
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To: blackbart1
I ran into Blanquita Cullum a few weeks ago at an event in DC and she couldn't say enough great things about FreeRepublic.

Informed, loyal, committed to the cause were just a few of the words that she used to characterize FReepers.

2,821 posted on 12/02/2001 7:19:39 AM PST by ReaganGirl
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To: A_dutiful_daughter
Ok Mom? I did my homework. Can I go out and play now?
2,822 posted on 12/02/2001 7:20:47 AM PST by A_dutiful_daughter
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To: ReaganGirl
You and I have a busy day ahead of us, don't we? I did not realize that if you used a service and paid for it, you have all these rights.

Here's my list of people to call tomorrow morning bring and early:

CP&L
Bellsouth
Verizon
Visa
Centura Bank
MBNA
Road Runner
Time Warner Cable
Carolina Country Club (there is a LOT Of stuff I want to know about over there.......LOL)
Nordstrom's
Lord & Taylor
Nationwide

Gosh, it's gonna take all day today just to make up the list!

2,823 posted on 12/02/2001 7:22:28 AM PST by Howlin
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To: ReaganGirl
Treeemendous, This IS the greatest place to be for sure. :-)
2,824 posted on 12/02/2001 7:23:58 AM PST by blackbart1
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To: A_dutiful_daughter
if some of the people do want more info, like my Mom, why can't it be provided?

Because it's none of her business. She can always go over to "your site" and hang out.

And, btw, what's wrong with your mother that she can't do her own dirty work?

2,825 posted on 12/02/2001 7:26:13 AM PST by Howlin
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To: Z2
BuZZZZZZ!

Wrong answer! You don't get to ask a queston until you've answered mine.

But thanks for not playing. It shows me that you have no point to make and are only capable of stirring up problems and not answering questions yourself.

When you can answer the question I posed please get back to me, otherwise I won't hold my breath.

2,826 posted on 12/02/2001 7:28:30 AM PST by ReaganGirl
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To: misunderestimate
Hey! You wanna argue with a "wingnut", come get me!
2,827 posted on 12/02/2001 7:28:41 AM PST by RedWing9
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To: A_dutiful_daughter
These are all pretty general questions

No, they are not.

I've read every word of this thread and the vast majority of those "questions" aren't mentioned on it. So you're obviously not getting your information from this thread nor for the first time.

One thing that might help when "you people" come on here would be if you wouldn't start out with a pack of lies. Then maybe somebody would take your seriously.

2,828 posted on 12/02/2001 7:29:00 AM PST by Howlin
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To: A_dutiful_daughter
You make some good observations. It does get rowdy here, it is a little awkward in the fundrasing department not knowing all the details, the admin mods are overboard. That said, this is the dawn of a new way of information dissemination. It's gonna take time to work out the kinks. It is the grandest sort of experiment in freedom. It is worthy of review, but I refuse to let it go away. Jim Robinson is not flawless, who is, but he's a helluva visionary, a good leader, a gutsy guy, and I am going to continue my support. I ask you dutiful daughter to acknowledge the necessary growing pains here and to add more input on positive ways the site can go and grow, while staying true to the original intent of the forum and its followers. V's wife.
2,829 posted on 12/02/2001 7:30:18 AM PST by ventana
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To: Howlin
What is the AF site, anyhow? V's wife.
2,830 posted on 12/02/2001 7:32:12 AM PST by ventana
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To: ReaganGirl
Well now, since Jim is answering (some of) my questions, it would seem to follow that I'm entitled to ask them, insofar has he is concerned.

Insofar as YOU are concerned, I am not concerned. ;-)

2,831 posted on 12/02/2001 7:32:47 AM PST by Z2
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To: Howlin
How nice, I wonder where her "Mother" is that she can't do this herself. I know my mother handles her own matters.

You deserve some kind of award, Howlin, for hanging around on this thread. Somthing like the EAGLE AWARD FOR SUPER-HUMAN PERSERVERENCE, we should look into it...

2,832 posted on 12/02/2001 7:33:58 AM PST by diotima
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To: ReaganGirl
Do you really have s*** for brains or do you honestly believe that you have some right to the communications.

Jim launched this thread (one of the best) to address various questions, including "(Is) FR ripping off donors?" He's under no legal obligation to give an accounting, and probably few who donated want one, but he invited probing, knowing full-well that adversary "lawyering" might result.

2,833 posted on 12/02/2001 7:34:15 AM PST by alcuin
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To: IronJack
I don't feel that purely theological subjects are particularly valid here, but certainly the moral derivatives of religion bear on our social structure.

Oh, absolutely. And religion has a real impact on things that are on topic. Heck, I wouldn't be too rigorous about the really, really off-topic stuff either - a little fun and letting off steam is good all around.

If I remember right, the original injunction was against "preaching", as opposed to a blanket rejection of any religious discussion. Lately, there just seems to be an explosion of posts of a creepy, foot-washing-and-snake-handling, you'll-be-sorry-when-you-fry-in-hell type. The innumerable Harry Potter threads are an example (can you tell this one is stuck in my craw?).

2,834 posted on 12/02/2001 7:34:52 AM PST by Ratatoskr
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To: A_dutiful_daughter
...if some of the people do want more info, like my Mom, why can't it be provided?

Because this is not a publicly traded company and as a LLC does not have to disclose the items you suggested. If you still have concerns about how your mom is spending her money then you should become her guardian and take over her finances. If I thought that my parents were "throwing money down a hole" that's what I would do.

If you go to any of the non-profit organizations and ask the questions that you asked you would see only their form 990. If you asked the owner of a small privately held company they would laugh you right out of the building.

BTW. Good for you for looking out for your mother.

2,835 posted on 12/02/2001 7:35:35 AM PST by ReaganGirl
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To: diotima
It reminds me of the Taliban, hiding in among the "chill-run."

I'm not hanging in anywhere. If I were still in college, I'd do a paper on these people. I am fascinated with their psychological slants on how this place runs.

And like I said, I'll be calling The News & Observer first thing in the morning to find out all their financial information!

2,836 posted on 12/02/2001 7:37:01 AM PST by Howlin
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To: ReaganGirl
whoops...forgot to add the < /sarcasm > at the end there.
2,837 posted on 12/02/2001 7:40:13 AM PST by ReaganGirl
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To: Howlin; TLBSHOW
Good Morning! Just checking in. Since our friends are here so often, I thought they might like to contribute! Heaven knows, if this site went belly-up, they wouldn't have anything useful to do. With that, here's the link:

Click on the FreeRepublic eagle for secure credit card donations,
or Snail Mail:
FREE REPUBLIC, LLC, PO BOX 9771, FRESNO, CA 93794

Oh, if you send a check via snail mail, just sign it and leave the rest blank. I'll take care of all those little annoying details...

2,838 posted on 12/02/2001 7:42:03 AM PST by WIMom
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To: Howlin
I've been expecting you. As I said, I have read most of what's here and explored the links provided. I am neither omniscient nor telepathic, so everything I have learned about this issues came from this thread or the links.

You seem to be one of the alpha attack dogs here. I anticipated you would try and characterize my questions as one of the Antis, and I can't prove you wrong so I intend to ignore you.

There is nothing wrong with my Mom. She is a gentile, gracious women. In fact, your repose speaks volumes as to why she would not want to ask any questions in person.

2,839 posted on 12/02/2001 7:42:07 AM PST by A_dutiful_daughter
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To: A_dutiful_daughter
I'll take a stab at these.

How many people and who, are drawing salaries from money donated to FR?

Jim, John, and a bookkeeper.

Is there a board of paid advisors?

No.

Do they have a vote on how monies are spent?

See above.

Does Badjoe get a salary for processing the donations? Or a cut?

No. No.

Who operates the sales of FR logo stuff?

BADJOE processes the sales. The money goes to FR.

Do they pay a royalty for the right to use the logos?

No. FReepStuff is a fundraiser for FR.

Does FR get a percentage of sales?

Yes.

What is that percentage?

100.

Will FR pay for the use of the new software?

I don't know what internal arrangements Jim has made with John regarding the new software. And it would not be appropriate for me to speculate.

Was the developer paid a salary from FR during development?

See above.

These answers are correct to the best of my knowledge. If anyone knows different, I will defer to them.

2,840 posted on 12/02/2001 7:43:48 AM PST by IronJack
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