Proposed Revised (12/19/00) Three-Year Operating Budget

ITEM	FY 2001 Projected	FY 2002 Estimated	FY 2003 Estimated
Computers	2,400	4,800	9,600
Staff *	95,000	152,000	225,000
Consultants	9,000	50,000	60,000
Student Interns/Scholarships	900	10,000	15,000
"Ambassador" Summer Stipends	0	12,000	36,000
Summer Trainers/Leaders	0	5,000	12,000
Insurance: Health, Life, Liability, Pension Trip, D&O	11,345	20,000	35,000
FICA	3,000	11,000	14,500
Pension	3,333	7,000	10,000
Performance Bonus	0	10,500	11,500
Office & Equipment	12,000	12,000	12,000
Office Supplies, Materials, Meetings	1,937	4,000	6,000
Legal & Audit	600	15,000	20,000
Website Awards	0	3,000	5,000
Administrative Travel	4,934	13,500	20,000
"Ambassador" Travel Assistance	0	12,000	34,000
Internet Access Logistics	1,864	10,000	15,000
Installation Materials/Parts	0	8,000	14,000
Computer Shipping	9,000	60,000	120,000
Interest (Line of Credit)	1,355	5,000	0
Cash SubTotal:	154,268	420,000	665,000
"Ambassador" Travel Raised Locally	0	25,000	50,000
Adult Volunteer Time	25,000	100,000	250,000
Donated Computers & Monitors ($400 per)	960,000	1,920,000	3,840,000
CASH & IN-KIND TOTAL:	$1,139,268	$2,465,000	$4,805,000

* Schools Coordinator is added to staff in FY’02 and Field Coordinator is added to staff in FY’03.

The expense budget presented above assumes that a large percentage of the expenses will be covered by in-kind donations of locally raised funds for "Ambassador" and Leader Travel, the contributed time of adult Club Leaders, and donated new and used computers. We project that in-kind donations will total as follows: FY 2001: $995,000; FY 2002: $2,045,000; and FY 2003: $4,140,000. We will also try to get donating companies or NGOs or Government Agencies to pay for the direct costs of ocean and land shipping.

It is assumed that cash donations and contracts will be needed to cover all administrative expenses to leverage these large scale in-kind contributions as follows: FY 2001: $154,268; FY 2002: $420,000; and FY 2003: $665,000.

FY'01 VOTED by the Board of Directors: 3/18/00

Revisions Voted by the Board of Directors: 9/17/00

BUDGET ASSUMPTIONS

Half of the computers will go to support ongoing multi-national projects designed to connect schools to the Internet.

Expense Item	FY 2001	FY 2002	FY 2003
Computers To Be Garnered & Shipped	2,400	4,800	9,600
Estimated Total Cost Per Computer&Monitor Shipped	$100	$60	$50
International Schools To Be Recruited (already 510)	250	500	1,000
U.S. Schools To Be Partnered *	50	250	500
Grants & Contracts Needed (Direct) (was $218,500)	$154,268	$420,000	$665,000
Number Of International Allied Organizations (now 9)	10	25	50
U.S. Business Trade Associations Helping	5	10	15
Number Of Countries Participating (now 34)	30	40	50
Participating U.S. Business Partner Companies (more)	10	25	50
"Ambassador" Teams To Be Trained (was 3)	0	5	15
Total "Ambassadors" To Be Sent (was 30)	0	40	120
Number Of Leaders To Be Sent Along (was 3)	0	5	15
Total Number Needing Air Fare (was 39)	0	45	135
International Schools To Be Connected (higher?)	100	500	2,000
Website Awards To Be Presented (was 5)	0	15	25
Planned Active U.S. Partner School Clubs (was 25)	0	125	500
Volunteer Club Leaders Needed In U.S.(was 25)	0	125	500
Club Leader Hours Needed in U.S. (50?)	500	2,000	5,000
Adult Volunteer Hours Maintaining Computers (50?)	500	2,000	5,000
Summer "Ambassadors" To Be Sent	0	12	36
Leaders To Be Sent (2 week cycles)	0	4	12
Total Number Needing Air Fare	0	16	48
Projected Value Of In-Kind Donations	$960,000	$2,045,000	$4,140,000

7/00-6/01: Organizing and piloting the organization and logistics so that it will be able to handle the complexity of logistics and partnerships needed to successfully accomplish the mission. During the first year, the President will begin work forming partnerships and securing the funding for the organization and then hiring an individual with strong capacity in logistics. This process will be assisted by international consultants as needed and affordable. The expenses for youth staff, travel, and shipping will all be low in the first year as these will be related only to implementing our initial pilot efforts. One of the first explorations will be to see about the feasibility of U.S. computer manufacturers directly donating and shipping 2,400 new and used working Internet-accessible computers to the NGOs and schools in developing countries that World Computer Exchange identifies.

7/01-6/02: Expand the logistical staff and increase funding for youth staff, travel, and shipping as the pilots are expanded and systems stabilized. We are proposing delivering, installing, and networking 4,800 computers in about ten different developing countries in the second year while securing the funding needed to substantially increase the number of participating students, schools (250 in US and 250 in developing countries), businesses, business volunteers, international schools, international non-government organizations, and computers secured, shipped, installed, and networked.

7/02-6/03: Begin the process of bringing Exchange to scale. We are projecting our student "ambassador" teams delivering, installing, and networking 10,000 computers in 100 schools in 20 different countries while maintaining ongoing active student-to-student partnerships among 1,000 US schools and 1,000 schools in developing countries.

"Ambassador & Leader Spring Travel

Assumes $500 cost per person raised by the local school and business partners. These trips will be in the spring for 2 weeks each team. They will stay with local families arranged by local NGOs and Partner Schools. They will move on land to a total of 5 schools during the 2 weeks. Year 1 Travelers: 0. Year 2: 45. Year 3: 135.

"Ambassador" & Leader Summer Travel

Assumes $500 cost per person. These trips will be in the summer for 4 weeks for the "ambassadors" and two weeks for the adult leaders. They will stay with local families arranged by local NGOs and Partner Schools. They will work in smaller sub-teams to network & train. Year 1 Travelers: 0. Year 2: 16. Year 3: 48.

Adult Exchange Volunteer Club Leaders

Assumes that each active Club will have a volunteer adult leader who will be a teacher from a partner School or a volunteer from a local Partner Business. We estimate that their time is worth $25 per hour and that they will work with the Club for about 2 hours per week for each of the 40 weeks of a school year for a total of $2,000 for a leader per Club. FY 2001 Hours: 500. FY 2002: 4,000. FY 2003: 10,000 hours.

Computer Maintenance Support Volunteers In Developing Countries:

Assumes two hours per month per school in-kind donation at $25 per hour.

"Ambassador" Summer Stipends: $1,000 for 4 weeks

Students who have successfully shown maturity, leadership, resourcefulness, and computer competence in their visit to a developing country as a World Computer Exchange volunteer. Year 1 "Ambassadors": 0. Year 2: 12. Year 3: 36.

Adult Leader Summer Stipends: $1,000 for 2 weeks

Teachers or business people who have successfully shown judgment, trustworthiness, resourcefulness, and computer competence during their help to a local school's Exchange Club. Assumes adults can only stay two weeks. If they can stay full four week period they get $2,000. Ratio 1 adult to 6 students. Year 1 Leaders: 0. Year 2: 4. Year 3: 12.

Website Awards: $200 Each (Average)

Educational or cultural website awards will be an average of $200 each. Year 1 Awards: 0. Year 2: 15. Year 3: 25. Form an Awards Committee

19^th December, 2000