What kind of money does Open Source Collective handle?
As a 501(c)(6) nonprofit fiscal host, Open Source Collective (OSC) receives and handles funds on behalf of our hosted projects. While we support a wide range of funding types, all funds must be used to advance the mission of the project in a way that aligns with OSC’s purpose: supporting the sustainability and health of the open source ecosystem.
This page explains the most common types of funds we handle and how we approach them from a compliance and operational perspective.
These are voluntary contributions made by individuals, companies, or foundations to support an open source project’s mission and activities. These are not charitable donations (and therefore not tax-deductible), but they are still made without the expectation of direct benefit or a specific deliverable.
Key characteristics:
No exchange of goods or services
Intended to support the project’s general mission or community impact
Not subject to sales tax or refund
Donors may receive public recognition, but not a transactional benefit
Business payments, or contract-based funding, on the other hand, involve a transactional exchange. These funds often arise when a hosted project engages in activities that directly benefit a customer or client (in some cases, though, they might also come from a grant, which may have a broader scope and have a larger impact base). These can still be received through OSC and must
Be used in ways that serve the open source project that we host
Be documented with a written agreement (grant letter, contract, etc)
An example of this could include grants, which OSC can assist with. These often require a signed agreement to ensure accountability for certain deliverables. While OSC, as a nonprofit, does not have a 'No Outside Money' policy, we ensure that any expenses that we process are ultimately used to benefit the open source side of the project, adhering to our nonprofit mission.
As a 501(c)(6) nonprofit, OSC must ensure that all funds we manage support open source. Properly classifying and handling incoming funds helps us:
comply with IRS and nonprofit law
maintain transparency
uphold the trust of contributors, hosted projects, and funders
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