Fiscal hosting enables Collectives to transact financially without needing to legally incorporate. In other contexts, this is sometimes called fiscal sponsorship.
A fiscal host is a legal company or individual who holds a Collective’s funds in their bank account, and can generate invoices and receipts for backers and sponsors. You can think of a fiscal host as an umbrella organization for the Collectives in it.
The fiscal host is responsible for taxes, accounting, compliance, financial admin, and paying expenses approved by the Collective’s core contributors (admins).
The Open Collective platform makes the job of fiscal hosts a lot easier by providing our software platform for tracking budgets and expenses, generating reports, and automating bookkeeping. Fiscal hosts have a dashboard where they can see their Collectives and perform common actions.
By sharing a host, Collectives are effectively mutualizing the cost and overhead of having a legal entity.
Fiscal Hosts can be in any location and take any form of legal entity (as long as they have a bank account, PayPal account, and Stripe account). Each one determines its own policies for which Collectives it will host and what fees it will charge.
Below are the hosts that Open Collective manages, plus some more examples.
Open Source Collective
Open source projects
Open Collective Foundation
US-based charity projects
Open Collective Inc
Our own transparent budget
Open Collective Europe ASBL
Open Collective Paris
Brussels citizen initiatives
Women Who Code
HQ/umbrella organizations with Collectives for each of their chapters (e.g. Women Who Code)
Organizations that support an ecosystem by hosting Collectives in a specific area/vertical/topic (e.g. Open Source Collective)
Charitable organizations who host Collectives that align with their mission (e.g. Open Collective Foundation)
Organizations that host different Collectives in a certain city or country (e.g. BrusselsTogether)
If your initiative is not already on our platform, you will still need to completely close out your agreement with and remove all of your funds from your previous fiscal host (since hosted initiatives cannot hold their budgets in two separate places).
A DAF is a Donor-Advised Fund
A DAF is a centralized charitable account
It allows charitably inclined individuals, families, and businesses to make tax-deductible charitable donations of cash, publicly-traded stock, and, in some cases, certain illiquid assets, to a public charity that sponsors a DAF program..