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Open Collective Foundation can fiscally sponsor Collectives that meet the following requirements:
The IRS has a specific definition of "charitable" purposes that it uses when granting 501(c)(3) status.
From the IRS website:
The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
Contributions to your Collective must be devoted to your charitable purpose. You can’t use your Collective’s funds for anything other than furthering your charitable purpose, and if you do you have to pay it back. You may not use your Collective’s funds to influence legislation, to support breaking the law, or for private profit.
Here are things that are not required by Open Collective Foundation that are sometimes requested by other fiscal sponsors:
- No application fees.
- No minimum budget balance.
- No minimum amount you have to raise per year.
Open Collective is a home for your community or collaborative charitable project - no matter how much money comes in.
If accepted to be hosted by Open Collective Foundation, any raised funds are now part of the 501(c)(3) space and must remain in it. This mean if you ever want to transition away from OCF or close your account, the funds will either need to be disbursed to the community or transferred to other 501(c)(3)s.
Or to learn more about How it Works, keep reading these Docs: