> 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/welcome-and-introduction-to-osc/what-is-fiscal-hosting.md). # What is Fiscal Hosting? ## What is Fiscal Hosting, And What is OSC's Approach? [Fiscal hosting](https://opencollective.com/fiscal-hosting) lets your project access financial and legal infrastructure without needing to form your own legal entity. At Open Source Collective (OSC), we offer this service to projects, communities, and funding initiatives focused on their code and community. If your project is approved, OSC provides: * **Fund management** — we hold the project's funds, providing you with the tools to fundraise and track expenses. * **Contribution processing** — we manage third-party payment processors, such as PayPal and Stripe, and handle refunds, chargebacks, and fraud prevention. We are also registered with vendor portals to receive funds from organizations, including Meta, Google, Amazon, Intel, and others, when a donation invoice is required. * **Payment processing** — we process payments to your vendors and maintainers, including individuals and organizations worldwide, while navigating international currencies and compliance requirements. * **Tax and legal compliance** — we handle tax filings, issue receipts, and ensure compliance with nonprofit regulations. * **Legal contract review** — we draft, review, and sign agreements on behalf of our hosted member projects. * **Oversight and accountability** — we ensure funds are used responsibly and in line with your project's open source work. This setup lets you focus more time on building your project and serving your community. Under the fiscal hosting model we’ve adopted, projects retain their autonomy. However, OSC remains responsible for financial oversight, ensuring your funds support open source initiatives. *** ## Using the Open Collective Platform OSC uses the [Open Collective platform](https://opencollective.com/opensource) as our public financial ledger. This offers our hosted member projects a transparent, accessible, and real-time way to manage their funds. Using this platform means: * **Direct contributions —** our hosted member projects can receive contributions directly via credit card, PayPal, and more — just share a direct link to your Open Collective profile to make it easy for supporters to donate to your project\*. * **Public visibility** — anyone can see where money comes from and how it's spent * **Real-time tracking and reporting** — your balance updates instantly when contributions are received through the platform or expenses are paid. **Privacy Note**: While transactions are publicly visible, private details (such as emails, names, and addresses) are only visible to admins. The platform also includes tools to help you engage with your community, share updates, set funding goals, and more. Learn more about what you can do on Open Collective [here.](https://docs.opencollective.com/help/collectives/quick-start-guide) {% hint style="info" %} *\*If an organization prefers to contribute via an invoice, we can facilitate that and allocate the funds directly to your Open Collective balance, too.* {% endhint %} *** ## How We Differ From Other Fiscal Hosts OSC is a U.S.-registered 501(c)(6) nonprofit that supports the infrastructure needs of open source projects. Unlike charity-based fiscal sponsors, which are typically 501(c)(3) organizations, our model works a bit differently. Here are a few key points to know: **Projects can hold funds outside of OSC** Unlike some fiscal hosts that require all project funds to remain in a single fiscally hosted account, OSC offers flexibility. We don’t have a “no outside money” policy, so projects can hold funds in separate business entities. Keep in mind that OSC can only help you manage the funds we hold on your behalf, nothing else. **Donations are not tax-deductible** Because we are a 501(c)(6), OSC is not a registered 501(c)(3) charity; donations to hosted member projects are not tax-deductible. This is consistent with IRS guidelines — open source donations aren't automatically classified as charitable simply because they are FOSS. If your project has a clear charitable purpose, a 501(c)(3) fiscal sponsor may be a good fit. *** ## If We're Not the Right Fit Not every project is a match for OSC. If your project doesn't fit within OSC's scope, other fiscal hosts may be a better fit. If you're considering other fiscal hosts, here are a few questions to ask: 1. Do they align with your project's mission? 2. Do their tools and processes support your needs? 3. Are they transparent to their donors and sponsored projects? If you want to use the Open Collective platform but need a different fiscal host, you can [browse the other fiscal hosts](https://opencollective.com/search?isHost=true) that use the Open Collective platform to find one that better suits your project's needs. Looking for more guidance? Check out [Ten Things to Look for in a Fiscal Sponsor](https://taicollaborative.org/ten-things-to-look-for-in-a-fiscal-sponsor) from Tai Collaborative. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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. 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