# Why Projects Use Open Source Collective for Donations If you're wondering why the open source project that 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) *** ## 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 comes with it. * **Financial Accountability and Transparency**\ OSC ensures donations are securely handled, 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 Corporate & Institutional Funding**\ Many companies and funding organizations prefer to donate through an established and known nonprofit rather than making direct payments to individuals for a host of reasons. By being a hosted member project with OSC, projects gain access to receiving 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 the support the long-term sustainability of the project you are about. If you have any questions, feel free to reach out! --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.oscollective.org/for-donors-companies-organizations-and-individuals/why-projects-use-open-source-collective-for-donations.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.