> For the complete documentation index, see [llms.txt](https://docs.oscollective.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.oscollective.org/for-donors-companies-organizations-and-individuals/why-projects-use-open-source-collective-for-donations.md).

# Why Projects Use Open Source Collective for Donations

If you're wondering why the open source project you support is hosted by Open Source Collective (OSC) and why your donation is processed through us — great question!

Many open source projects depend on funding from users or organizations, but accepting and managing those funds independently can be a heavy lift. It often requires setting up a legal entity, handling financial reporting, managing taxes, distributing funds to contributors, and staying compliant with regulations. For many projects, that’s time and energy better spent on their community and their code — not on financial and legal administration.

That’s where OSC comes in. As a fiscal host, we provide the structure and support projects need to receive and manage funding responsibly, without having to go it alone.

:point\_right:[**Read more about fiscal hosting here.**](/welcome-and-introduction-to-osc/what-is-fiscal-hosting.md)

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## Want to Know More About What OSC Does?

* **No Need to Set Up a Legal Entity**\
  Starting a business or nonprofit to accept donations comes with legal, tax, and operational responsibilities. By using OSC as a fiscal host, projects can receive funding without the burden of managing a separate legal entity and taxes, regulations, and compliance that come with it.
* **Financial Accountability and Transparency**\
  OSC ensures that donations are handled securely, expenses are tracked, and financial reporting is fully transparent via Open Collective. This means you can see exactly where the money goes. 
* **Efficient Fund Distribution**\
  Open source projects often involve multiple contributors. OSC provides the infrastructure to pay maintainers, reimburse expenses, and manage funds efficiently so projects can keep moving forward with their community and code. 
* **Access to Grants or Corporate & Institutional Funding**\
  Many companies and funding organizations prefer to donate through an established, well-known nonprofit rather than make direct payments to individuals for a host of reasons. As a hosted member project with OSC, the project gains access to grants, sponsorships, and corporate contributions that might not otherwise be available. 

By donating through OSC, you're ensuring your donation is handled responsibly and used to support the long-term sustainability of the project you are about. If you have any questions, feel free to reach out!