WIKIMEDIA FOUNDATION, INC. 
Notes to Consolidated Financial Statements 
June 30, 2024 and 2023 
 8 (Continued) 
prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority 
to measurements involving significant unobservable inputs (Level 3 measurements). 
The three levels of the fair value hierarchy are as follows: 
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical investments that the 
Foundation has the ability to access at the measurement date. The Foundation’s Level 1 assets 
are investments in marketable securities, including stocks and mutual funds. 
• Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the 
investment, either directly or indirectly. The Foundation’s Level 2 assets are investments in 
corporate bonds, mortgage-backed securities, and U.S. Treasury securities. 
• Level 3 inputs are unobservable inputs from investments. Level 3 inputs incorporate assumptions 
about the factors that market participants would use in pricing the instrument. 
(i) Property and Equipment, Net 
Expenditures for property and equipment with useful lives of one year or more are capitalized and 
recorded at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of 
the assets. The estimated useful life of furniture and data center equipment is five years and computer 
equipment such as laptops and desktops is four years. Leasehold improvements are amortized over 
the shorter of the life of the lease or the leasehold improvement. Donated computer equipment and 
software are recorded at the fair value at the time of the donation and are deemed as contributions  
without donor restriction in the year in which they are received. Repairs and maintenance of equipment 
are charged to operations. Upon retirement, sale, or other disposition of property and equipment, costs, 
and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is 
included in operations. 
The Foundation incurs software development costs related to internal use software. Qualifying costs 
incurred during the application development stage are capitalized. These costs primarily consist of 
internal labor and third-party development costs and are amortized using the straight-line method over 
the estimated useful life of the software, which is generally three years. These assets are reviewed for 
impairment whenever events or changes in circumstances occur that could impact their recoverability.  
External use software is expensed as incurred since there is generally no passage of time between 
achievement of technological feasibility and the availability for general release . 
(j) Other Operating Expenses 
Other operating expenses primarily include facility expenses, staff related expenses, insurance and 
personal property tax expenses, and other general administrative expenses. 
(k) Contributions of Cash and Other Financial Assets  
Unconditional promises to give are recognized as revenue when the underlying promises are received 
by the Foundation. Contributions that are conditional are not recorded until the condition is substantially 
met. Conditional contributions must include both (1) one or more barriers that need to be overcome 
before the Foundation is entitled to the contribution, and (2) a right of return or a right of release from 
the donor’s obligation to provide the contribution.