Expenses FAQ

What does the approval process look like for expenses?

Please see Submitting Expenses for more information on the approval process.

Can we send or receive funds via Venmo or Cash App?

Unfortunately, these services do not currently allow nonprofit accounts.
If you work with a mutual aid or solidarity project and must use these apps, please see our Cash Assistance Policy.

Do you offer payroll services? Can I have employees?

Yes! More info.

What about tax forms?

Open Collective Foundation must collect tax forms for any individual who invoices (this does not apply to reimbursements or payroll) over $600 in year. Those individuals will be automatically issued a 1099. Here's a good explanation of how W-9s work for independent contractors, and there's more info on what a 1099 is here.
When you submit an expense that puts you over the $600 threshold, you will be sent an email with a link to complete your tax form online. This email will come from HelloWorks, the system we use to handle the forms.
Expenses will not be paid out to you until you submit the tax form.
If you don’t meet the $600 threshold, simply report your earnings as miscellaneous self-employment income when you file your taxes as described above.
Please note: If you are paid via Paypal, OCF will not issue you a 1099 because Paypal is responsible for that. So you will not be asked for a tax form if paid via Paypal. However, Paypal only sends out 1099s when >$20,000 is invoiced. This means you will not get a 1099 from Paypal or OCF if you receive less than $20,000 total from Paypal.

Can I be incognito/not display my name?

We now have the option to differentiate between your public display name, and your private legal name.
We do need your real name as your legal name, because we are bound by IRS regulations and need to be able to ensure funds are being used appropriately. This private legal name will only be visible to admins.
Details such as attachments, comments, the private note section, and the payout method information are only visible to the submitter of the request, the collective admin, and the fiscal host admin who processes the actual payment. Confidential details can also be included in those areas to ensure privacy.

How can we pay for large expenses that we cannot 'pay out-of-pocket and then get reimbursed later'?

As a 501(c)(3) we cannot give out lump sums first and get receipts later. This is because, with the IRS regulations for a charitable nonprofit, we have to be able to track all funds that come in and go out of our accounts.
Check our Payouts page for information about all the different ways payouts can be made through OCF.
For large expenses that you cannot pay out-of-pocket, you can also have your vendors and service providers submit their invoices directly via your initiative's page, or you can use the "invite expense" option, where you fill in the details and they recieve an email and then just need to confirm. So vendors can invoice OCF through your page to get paid, and then we pay them directly.
Last modified 1d ago