Money contributed to an initiative goes to the bank account of the Fiscal Host. When someone wants to be paid, they submit an expense through your initiative's page. After you approve it, the person can be reimbursed via PayPal, Transferwise, or wire transfer.
Expenses are visible publicly, so everyone can see how much money was spent and on what (though private details like emails, names, and addresses are only visible to that user and the Collective admins).
Go to the initiative's page and click "Submit Expense". You will need to upload a valid receipt or invoice, and provide your PayPal address.
Expenses are paid out weekly, on Thursdays.
Anyone can file an expense to any Collective. To be paid, it must be approved by one of the Core Contributors of that Collective.
Please ensure your expense meets the expense policy of the Collective, which appears on the 'submit expense' form. If you modify an expense, it will have to be approved again. Once paid, it cannot be modified.
Basic data for all expenses, like the amount and description, are public. But attachments like invoices are private, as they may contain personal information. Only the administrators of the initiative and the Fiscal Host can see invoice and receipt details.
Right now, we only support PayPal and Bank Transfers for one-click payouts through the platform. You can manually record any money that you receive or send outside of the Open Collective platform. In the future, we hope to build other payout methods into the platform
The Open Collective Foundation fiscal host must collect tax forms from users who invoice more than $600 USD per year (receipt reimbursements don't count toward the $600 limit, only invoices):
A W9 form (for US persons) or W8-BEN/E (for non-US persons).
For tax purposes, you will likely be treated as an independent contractor and you will be issued a 1099 if your earnings exceed $600. Here's a good explanation of how W-9s work for independent contractors, and there's more info on what a 1099 is here.
If you don’t meet the $600 threshold, simply report your earnings as miscellaneous self-employment income when you file your taxes.
Expenses will not be paid out until the tax form has been submitted.