It has been quite a challenging year. In February, we, the Board of Directors of Open Collective Foundation (OCF), announced that we had made the difficult decision to dissolve OCF by the end of this year. Today, we are announcing that OCF’s fiscal sponsorship program has officially ended, as of September 30, 2024.

We are grateful to core OCF staffers Wayne Kleppe and Mike Strode for helping collectives navigate the staged winding down of our fiscal sponsorship program. Mike left the organization in June, and Wayne has stayed on as our sole employee to manage the many financial and administrative tasks related to our dissolution.

This staged process allowed many collectives the time to create their own 501(c)(3) organizations or transfer to new fiscal sponsors. While we recognize that many collectives had to cease operations, we are heartened that many others are continuing their important work.

With the end of our fiscal sponsorship program, all prior collectives are now frozen on the Open Collective platform. We are now refocusing our efforts on the many legal and financial tasks related to the dissolution of OCF.

We are around to answer any questions you may have. The best way to reach us is by emailing generalinquiries@opencollective.org.

We have been honored and proud to work with this community, and wish you all well.

Hafidha Acuay and Bart Westdijk

Board of Directors, Open Collective Foundation

During OCF's dissolution, the details in the 'termination' section of our terms still apply.

Collectives can either spend down and sunset, or transfer their funds to another 501(c)(3) organization (either another fiscal sponsor or a new 501(c)(3) legal entity). You can review your options in our Dissolution FAQ here.

This page gives additional detail on the steps you need to take.

➡️ Do this first

To complete offboarding from OCF, please complete the Exit & Unhosting Review Form to inform us of your plan.

If you are spending down and sunsetting your collective

If you want to shut your Collective down completely, you first need to zero the budget. You can do this by submitting expenses or transferring to another 501(c)(3). Once the balance is at zero, go to settings > advanced > archive.

Review the Exit Checklist to make sure all other services are shut down properly.

After you have zeroed out your balance, if you are no longer going to use the Open Collective platform, it is a best practice to "archive" your collective.

More about archiving/deleting Collectives.

If you are transitioning to another 501(c)(3) or fiscal sponsor

OCF is limited by the regulations regarding 501(c)(3) nonprofits. During our dissolution, we can only transfer money to another 501(c)(3). If you're moving to a different kind of entity, you'll need to spend down the funds OCF holds on Collective expenses before leaving.

Once we give a tax-deductible receipt for donated funds, we have to ensure they are only spent on allowed 501(c)(3) purposes. We can do that either by holding the funds for you as you spend them down, or by transferring them to another 501(c)(3) entity who is bound to follow the same rules.

Required documentation for sending funds to another 501(c)(3)

If you are moving from OCF to another 501(c)(3)—whether it's a new fiscal sponsor or your own new entity—submit an expense to move your balance over (or invite one if you don't run the other entity), and upload the determination letter as an attachment.

• Bank-provided ACH direct deposit info for your new fiscal host / 501(c)(3) / nonprofit legal entity (e.g., bank verification letter)

• A list of all current grants and their balances. If grants are being transferred to your new fiscal host, we require a signed letter from the grantor.

• Signed letters from all grantors stating they approve the release of funds to your new fiscal host and OCF is no longer responsible for receiving or distributing ongoing funds for this collective

• W9 from new fiscal sponsor/501(c)(3) entity

• IRS determination letter from new fiscal sponsor/501(c)(3) entity

• A MOU/signed agreement between your collective and your new fiscal sponsor

Questions to consider

If you are moving to a new fiscal sponsor:

• Have you evaluated the services you currently use at OCF to ensure that they are offered by your new fiscal sponsor?

• Have you obtained the following from your new sponsors:

  • IRS determination letter

  • ACH deposit information (only bank-provided documentation will accepted)

  • An MOU (signed agreement)

If you are starting your own 501(c)(3):

• Have you identified legal and accounting advisors for your org? Our minimum recommendation would be a CPA and attorney, but orgs with larger budgets might also require a CFO firm.

• Have you considered a payroll provider to support with onboarding, payroll, and benefits?

• Have you obtained an IRS determination letter and bank details to submit for final distribution?

Exit Checklist

Review this checklist before transitioning out of OCF.

• Have any funders for actively reporting or multi-year grants been informed of your transition?

• Are all associated expenses with your project submitted and approved?

  • If you have any outstanding contracts with unbilled amounts or non-transferable grants, OCF may need to hold back funds.

• Did you migrate your Google Workspace data?

• Have any nonprofit discounts in use been transitioned to your new entity?

• Have all associated leases or contracts signed by OCF been transitioned to a new signatory?

• Have any grantees served by an individual grantmaking program wound down?

If you have employees:

• Have all employees had an end date set in Justworks and been informed of this transition?

  • Have external provisions been made for employee benefits transition?

• If you have virtual cards, make sure to change your card information on any outside services that may have payment information saved. Virtual cards associated with your collective will be deactivated once you are unhosted.

Questions?

Email us if you need help leaving OCF.

Open Collective Foundation allows donors to support amazing Collectives without them having to go through the laborious process of setting up a legal entity and bank account to receive funds.

While Open Collective Foundation provides plenty of benefits for our sponsored Collectives, there are also benefits for financial contributors. Since our hosted Collectives use the Open Collective platform, their finances are transparent, and you can feel confident that the funds will be put to good use.

Since we have 501(c)(3) status with the IRS, financial contributions are tax-deductible to the extent of the law. Once received we will issue a receipt that certifies that you have made this charitable contribution and you are not receiving any goods or services in return.

If you value what a project produces or stands for, support them to maintain and grow it! You can also be recognized by appearing on their page as a financial contributor.

Donors can contribute via the following methods:

• Credit Card, Paypal, and Electronic Bank Transfer

• Check

• Donor-Advised Fund

• Matching Gift

• In-Kind (i.e., “non-cash”)

• Stock donations

• Other ways to donate

Further instructions on how to support one of our hosted Collectives via the above methods are included below. See Official Information and Documents for our EIN, determination letter, and banking info.

Thank you!

On behalf of our Collectives, thank you for your support! We highly value all of our contributors. If there is anything you need as a donor, please reach out.

Other ways to fundraise

In addition to receiving funds via the above donation methods, hosted Collectives can:

• Apply for grants from institutional funders

• Use 3rd-party fundraising tools

• Coordinate fully manual off-platform donations

• Other ways to give

The Terms of Fiscal Sponsorship Agreement (sometimes called FSA) is the legal agreement that defines the relationship between OCF and a hosted Collective.

It includes a “plain English” version alongside it to help you understand the ins and outs. And we really encourage you to read the whole thing.

For some key highlights of the agreement, see our Policies.

Have any questions? Reach out to us.

Check Contributions

To contribute to an Collective via check, please follow the following procedure:

• Make the check out to Open Collective Foundation.

• Put the name of the Collective you would like to support in the memo line.

• Mail the check to the following address:

Open Collective Foundation 501(c)(3)

440 N. Barranca Avenue #3717

Covina, CA 91723

• Name & Email address of contributor (whether an individual or organization)

• Email address to send receipt

• Mailing address of contributor

• Name of Intended Collective

• Amount

• Contribution method (e.g. Paypal, bank transfer)

• Purpose of check (e.g. Grant payment, Initial balance transfer, donation)

We will process the check and designate the funds to the proper Collective once the check is received.

FAQ

When is the last date to spend down funds?

All money in your fund should be spent on mission-aligned activities or transferred to another 501(c)(3) organization by September 30.

When is the last date I can receive funds for my project?

At the end of the day (midnight PT) March 15, all donation platforms will be shut down, including Stripe, PayPal, Benevity, and crowdfunding. Collectives will also no longer be able to accept transfers via ACH after March 15. Any donations made via check or ACH that are in transit by the end of the day March 15 will be credited.

What are our options?

There is no one-size-fits-all solution for the 600+ collectives at OCF. While all collective balances must be spent down by September 30, there are many ways to go about this.

Regardless of your chosen path forward, all expenditures must be allowable under 501(c)(3) regulations and devoted to your charitable purpose. You can’t use your collective’s funds to influence legislation, to support breaking the law, or for private profit. We are not allowed to transfer any funds to individuals* or for-profit companies.

Here are the most common scenarios, and who they would be most appropriate for.

If a collective fails to reach out to us by April 1 with a proposed plan, we will be reaching out with a plan based on our assessment of the collective’s activities. Our recommendation will be based on your balance amount, income history, spending activity, charitable purpose, and level of complexity.

How do I transfer funds to another fiscal sponsor?

We will need to confirm that your new fiscal sponsor is a 501(c)(3) organization, and we will need to perform standard due diligence to help assure that the successor fiscal sponsor is qualified and reasonably capable of using transferred assets consistent with their charitable purposes.

If you choose to go to a new fiscal sponsor, the following information is needed to transfer funds:

• Bank-provided ACH/direct deposit info for your new fiscal host/fiscal sponsor (e.g., bank verification letter)

• W9 from new fiscal host/fiscal sponsor

• IRS Determination letter from new fiscal host/fiscal sponsor

• List of all current grants and their balances. If grants are being transferred to your new fiscal host, we require a signed letter from the grantor for their release to the new entity.

• A copy of your MOU/signed agreement between your collective and your new fiscal sponsor

We are starting our own nonprofit organization. How do I transfer funds to our new organization?

If you are seeking 501(c)(3) status, we cannot transfer any funds until you've received your IRS determination letter.

The following information is needed to transfer funds:

• Bank-provided ACH/direct deposit info for your new nonprofit legal entity

• W9 from new legal entity

• IRS Determination letter for new legal entity

• List of all current grants and their balances. If grants are being transferred to your new organization, we require a signed letter from the grantor for their release to the new entity.

If you choose this option, we will require a backup plan (either transferring your full balance to another 501(c)(3) organization or transferring to another fiscal sponsor).

What happens if I can’t spend down all of my funds?

If you cannot spend all of your funds on qualified charitable expenses by September 30, OCF will grant the remaining fund balance to another qualified, mission aligned organization.

What if we are expecting donations after March 15?

Any recurring donations through the Open Collective platform will be discontinued as of March 15. Recurring donors will be notified automatically that their recurring donation is canceled. All third party contribution-processing platforms (Stripe, Benevity, PayPal, etc.) will be shut down March 15.

Why is the final date to accept donations (March 15) so soon? Can I get an extension?

Where can I find a list of other fiscal sponsors?

Why can’t OCF transfer all collectives to another fiscal sponsor?

We are not able to manage the transfer of all collectives to another fiscal sponsor due to the diversity of our collectives’ mission and complexity.

However, we are happy to discuss your options as you consider whether to move your project to another sponsor.

Where can I find information about establishing my own nonprofit?

Can I transfer my funds to another host on Open Collective platform (OSC, OCE, etc.)?

We have employees. What do we need to do?

Will OCF be onboarding new collective employees in 2024?

What happens to our liability insurance, if we have a policy?

If collectives have selected liability insurance, their policies are paid in full for 2024. OCF's liability coverage applies through the end of the year, so it will cover your collective through your offboarding with OCF. Insurance policies are non-refundable.

Can I download my contributor & financial data from the OCI platform?

What happens to our Google Workspace (email, Drive, etc.)? Can I transfer it?

What does this mean for the Open Collective platform and other hosts on the platform (Open Source Collective, Open Collective Europe, etc.)?

Open Collective Inc. (OCI) is a for-profit entity responsible for building the Open Collective platform. Open Source Collective (OSC) and Open Collective Europe (OCE) are separate entities, each with different nonprofit status under law. OCF, OSC, and OCE were all founded by OCI. We realize it can be confusing, but Open Collective Foundation (OCF) is an independent nonprofit with its own board of directors.

The OCF board of directors decided to dissolve OCF only very recently, after many months spent exploring other solutions to various financial and operational challenges.

OCI, OSC, and OCE learned of the decision the same day as our community of collectives and our core staff. You can read each of these organizations’ official statements here:

How can I contact OCF?

Open Collective Foundation is able to receive donations of public stock on behalf of hosted Collectives.

Tax benefits

Normally when you sell stock, you have to pay capital gains tax. But if you donate it to a tax-exempt nonprofit, it can be sold tax-free. So everyone wins: the donor gets tax benefits, and the Collective gets a donation to support its mission.

How it works

1. The owner of the public stock transfers it to OCF

2. OCF sells the stock as soon as it comes in

3. The proceeds are credited to the Collective's balance

How to donate stock

Contact us to let us know about the stock donation.

FAQ

Are there extra fees?

No, the proceeds will be credited to the Collective less only OCF's normal hosting fee that is applied to all incoming contributions.

Can I donate private equity?

No, OCF is only able to accept public stock that can be immediately sold on the market.

Matching gifts vary widely in their processes, but we are happy to work with your employer or other corporate sponsors to facilitate match funding. Sometimes matching gifts are slow to arrive, depending on the matcher’s processes, and your budget will not be credited until the funds actually arrive. Please refer here for more about what info we require.

OCF can process matching donations (including employee giving programs, matching gifts, contributions-matching, funds arriving from third-party giving platforms, and grant matches), but in order to do so, we need additional information about the donation.

To ensure that a donation match goes through, please email us the following:

• Donor name

• Donor company/employer name

• Collective name

• Date(s) of original donation (if in two parts)

• Dollar amount of original donation

• The match amount or rate (i.e., 2x, 3x, 4x)

• If known, the platform used by the company/employer

Without the above information, we cannot guarantee that funds will be allocated properly and in a timely manner. This is due to the difficult manual processes required in order to correctly allocate those funds.

If needed, you can find our EIN number on the Official Information and Documents page. Any email communications from your matching gift program should go to contact@opencollective.foundation.

If you are expecting funds and have not seen them arrive, or if you have donated funds via third-parties, please email us at contact@opencollective.foundation with the above information included and we will be happy to locate and allocate those funds with you.

To make an in-kind (a.k.a. non-cash) contribution, please contact the Collective about your intentions. You and the Collective should work together to facilitate the contribution.

Once the contribution has been made, and the contributed items are in the Collective’s possession, the Collective Admin should notify Open Collective Foundation staff.

So that we can report accurately on the contribution, Collective Admins should please send the following information to contact@opencollective.foundation:

• Name of Collective

• Name of Contributor (whether an individual or organization)

• Contributor’s contact information (Email preferred)

• Date received

• Detailed description of goods received

• Fair Market Value of donated item on the date of the donation

  • It is the donor's responsibility to determine fair market value

Tax-deductibility of in-kind contributions

Please be aware that the value of a contributor’s time or services is unfortunately not tax-deductible in the eyes of the IRS. However valuable, pro-bono or volunteer services, professional or not, and discounted services, are typically not tax-deductible charitable contributions.

For a contribution to be tax-deductible, there needs to be a transfer of ownership. Open Collective Foundation can only provide tax receipts for tax-deductible contributions.‌

A couple of examples:

• Allowing someone to rent an item or space for free or at a discount would not qualify as a tax-deductible contribution, since it is a service given free of charge, but itself not a financial contribution

• Giving an organization a gift card for services can count as a charitable contribution, since the actual gift card, itself, is then held by the organization

Tax receipts/acknowledgment letters for in-kind contributions

‌If the contributed items are tax-deductible in the eyes of the IRS, we would be happy to provide the contributor with a tax receipt.

In order to receive a written letter of acknowledgment, Collective Admins please email OCF with the following information:

• Date the donation was received

• First, Last Name of contributor (whether an individual or organization)

• Contributor’s contact information (Email preferred)

• Name of Collective

• Detailed description of goods donated

  • Fair market valuation of donated goods

If your contribution has not yet been reported by the Collective, please see the procedure for reporting an in-kind contribution above.

Check our Grants FAQ for commonly asked questions.

Grant Applications

The opportunity to apply for grants is one of the biggest benefits of being hosted by a 501(c)(3) organization like Open Collective Foundation.

When drafting grant applications, you will likely need info like our EIN number, address, and maybe even our banking information. You may also need to upload our IRS Determination Letter. Please check the Official Information and Documents page first, and if the application asks for info or documentation not listed there (such as our most recent audit, 990, or other budget documents), reach out and we will endeavor to put it together for you.

If you need an approximate running total of our operational budget, that can be found on our OC Dashboard along with our current balance.

Make sure to also double-check that the funder accepts applications from “fiscally sponsored projects” (i.e. what OCF calls 'Collectives'). Although fiscal hosting (a.k.a. fiscal sponsorship) is an established and widespread practice in the nonprofit world, there are funders that do not allow it. If their guidelines do not say, reach out to them and ask! (And in general, don’t be afraid to ask funders questions.)

Government Grants

Since Open Collective Foundation is a 501(c)(3) organization, our projects are eligible to apply for many government grants. Please be aware, however, that there may be some government grant programs that do not accept fiscally sponsored projects or require the fiscal sponsor to be based in their geographic area of focus (OCF is based in Covina, California).

Some large (e.g., federal) government programs also have extremely complicated application processes that require significant, time-intensive work from you and our staff. Because of the labor involved, as well as some of their restrictions, our Collectives may not be able to submit such applications.

Grant Contracts and Receiving Funds

If your grant application has been approved, congratulations! The first thing the funder is likely to do is provide a grant contract that needs to be signed.

Since grant contracts are legal agreements between the funder and Open Collective Foundation, they will need to be signed by an OCF staff member. Once you receive a grant contract, please send it to contact@opencollective.foundation or ask the funder to send it to us directly.

If they provide you with an ACH form (for payments via bank transfer) or ask for our mailing address (to contribute via check), you can send that information to them. If it needs to be signed by an Open Collective Foundation team member, send it to us via email.

Please be sure to send an email to us when the funds are en route so our finance team can look out for them. Once we have received and processed the contribution, you will see the funds in your Collective’s budget.

Funder Relationships

Like all fundraising relationships, it is important to cultivate and maintain (a.k.a. “steward”) your connections with funders.

At the most basic level, make sure to thank them! The Open Collective platform automates some of this by displaying your financial contributors on your page, and sending email notifications related to transactions, but a personal touch can be great. Other features that can be useful are automated thank-you tweets to contributors and mentioning funders in Updates about your activities.

Grant Reports

You should also ensure that you meet all of their requirements while completing the work, provided they are aligned with your mission. Most common among these are grant reports.

Make sure to punctually submit completed annual, interim, and/or final reports to the funder as requested. We recommend you post such reports as Updates on your Open Collective page, so your wider community can see it too.

See also:

Open Collective Foundation cannot currently receive donations via BitCoin. We are currently working on the ability to receive stock donations.

Invoices

Invoices must meet the following criteria to be paid:

• Must have a description of the work done, and the amount of time (normally in hours) spent on work or time covered (normally in months).

• The payee must include their billing address.

• The payee's name must match the billing contact or name on the bank account.

Regarding descriptions: Invoices need a clear description of services rendered and sufficient detail to clarify what the collective is paying for. This is because our accountant or auditors may check this description for compliance. That means that someone with no knowledge of your project should be able to understand what was done from the description.

To make this easier, we suggest:

• Using phrases like "program management" or "project administration" instead of more generic words like "payment", "work", or "salary".

• Developing a clear and consistent role description for each collective member who will be submitting an invoice to your project so that they do not need additional coaching from OCF staff.

We may mark an invoice incomplete and follow up on invoices which lack sufficient explanation of the work performed. This does not mean we are cancelling your payment, but that we need you to add more detail to the description.

Reimbursements

Reimbursements SHOULD NOT be used to pay someone providing services to the collective. Please have this person submit their own invoice using the guidelines above.

Receipts are required so that we can ensure the requested amount matches the purchased amount in order to approve the reimbursement.

A valid receipt contains:

1. Name of the vendor (person or company you paid)

2. Transaction date (when you paid)

3. A detailed description of goods or services purchased (what you bought)

4. Amount paid

5. The currency in question. This is normally clear from the address and the currency symbol.

6. Form of payment (cash, check, or last four digits of the credit card)

In order to achieve your Collective's mission, you need to spend the money you raise. We are here to facilitate that, and to take care of a lot of the admin for you. OCF functions as your Collective's bank account and we process many kinds of payouts for our hosted groups.

Limitations

While we try to accommodate every request, we work within some limits defined by IRS rules, human capacity of our staff, and technical limitations.

• OCF will only process payouts approved by an admin of the Collective.

• All expenditures must be allowable under 501(c)(3) regulations.

• OCF makes payments via bank transfers only, because these are integrated with the Open Collective platform.

• We have certain paperwork requirements due to IRS rules—we have to collect W9 forms in some cases before we can pay someone, we have to sign a grant contracts, etc. If any of these apply to you, we will let you know.

• OCF cannot reimburse for EBT

If you would like to contribute but would prefer to do so without using the Open Collective platform, you will have to manually arrange the payments yourself. Also, you will need to communicate with us about your payment so that we can properly allocate it to the intended hosted Collective.

• Name of contributor (whether an individual or organization)

• Email address to send receipt

• Mailing address of contributor

• Intended Collective (This is very important, as OCF needs to know where to allocate the donated funds)

• Amount

• Contribution method

To ensure that our services are sustainable and continuously improving, we charge a Host Fee on funds contributed to the Collectives we host. Charging fees like this is standard in the fiscal sponsorship world.

There are no setup fees, balance minimums, monthly or annual fees, or any other charges. Besides the Host Fee, the only other fees you'll see are payment processor fees charged by Stripe, PayPal, Wise, or other third party services you may opt to pay through.

How much are the fees?

For groups who have raised up to $500k:

• 5% fee on each incoming contribution made via credit card or another method through your page on Open Collective. These transactions are automated.

• 8% via all other means (like non-platform bank transfers and checks). This reflects the manual processing we need to do for such transactions.

• 6% for between $500k and $1 million raised, and

• 4% if you have raised over $1M

How do the fees compare?

The standard fee for fiscal sponsorship is 5%-15%. Different fiscal sponsors offer different services so it can be hard to directly compare, but we think our rates are quite a good value for the service we offer.

What do we use fee revenue for?

The purpose of charging a fee is so we can cover our costs continue to improve our services for Collectives. Open Collective Foundation is a 501(c)(3) non-profit, meaning all revenue is invested back into our mission.

A lot of our work is behind the scenes, so to understand why we have to charge fees, it might be useful to know more about our costs.

• The largest expense is staff, and people are the most valuable part of our organization. Our team reviews applications to join OCF, processes expense requests, provides user support, responds to your questions and feedback, writes the blog and newsletter, handles partnerships and contracts with funders, assists with grant applications, maintains this documentation, spreads the word about OCF, and continuously improves our features and services. And lots more!

• OCF shares part of our revenue with Open Collective, which makes the software platform that enables everything we do. We have a close partnership so that the platform can continue to evolve.

• We need professional services, such as lawyers, accountants, and developers. There are a lot of legal, financial, and technical tasks and responsibilities involved in running OCF.

• Compliance is an important part of being a 501(c)(3) and fiscal sponsor. It's our job to ensure that all money is used legitimately for public benefit. There are a lot of regulations and laws we have to follow. We have to file taxes with the IRS and undergo extensive independent audits.

• There are also operational costs like software subscriptions, office expenses, maintaining our website, etc.

Can we have a discount?

Collectives often ask us for discounts on fees. We wish we could say yes, because we are so inspired by the important work they do, and understand that every dollar counts. People also ask for discounts on bringing in funds already raised before joining OCF. We understand that it can feel odd to pay fees on money you already have.

Once you choose to contribute from the Collective’s profile, our platform will guide you through the rest of the process, including choosing between credit card, PayPal, and electronic bank transfer (i.e., ACH or wire).

Bank Transfers

If you select to make a contribution via bank transfer, you will automatically be given bank transfer instructions, on screen and by email, along with a unique reference ID code.

You must include the unique ID code as a reference with your bank transfer, so we can match up the transaction.

Once the money has arrived, we will confirm, then the amount will be credited to the Collective’s balance and you will automatically receive a receipt.‌

Giving Anonymously

Secure Contributions

How does the grantmaking process work?

What sorts of things can we make grants for?

Taxes and receipt availability

The OCF grantmaking policy is very narrowly scoped to enable grants that:

• Won't be taxable income to the grantee, and

• Enable us to pay people upfront instead of needing receipts beforehand.

This is because if these two aspects aren't a barrier for the payee, you can already pay people via normal expenses without all this extra process.

If receipts are available, they can submit a reimbursement expense. If it's okay for them to get a 1099 for this income, they can submit an invoice expense.

If those options aren't a good fit and they fit the criteria for a grant, you can proceed to make a grant.

Mission/purpose alignment

Grants must fit the IRS definition of charitable purposes, fit OCF's defined charitable purposes, and be aligned with the overall mission of your Collective.

You have a responsibility to ensure that all funds donated to your Collective go toward your Collective’s mission, including grants. If you have an idea for something completely different, consider expanding your focus or start a new Collective.

What do you mean by the IRS definition of charitable purposes?

Generally, grants by our Collectives have to fit within the exempt purposes set forth in Internal Revenue Code section 501(c)(3): charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals.

The term charitable can be confusing. The IRS uses the term in its generally accepted legal sense, and it 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.

Rapid response grants

In emergencies, rapid response can make a tremendous difference.

The policy we have developed for grantmaking streamlines the process for applicants and Collectives. One added benefit of this is that Collectives can respond quickly to their community's needs. If all the info is submitted and the contract is signed quickly, we can turn around grant payments within a few days.

Traditional grantmaking by large foundations can drag on for months, and usually requires everything about the intended impact and budget be known upfront. OCF's approach to grantmaking enables a lower up-front barrier because we hold the funds as you spend the grant and check each expense instead of requiring a detailed budget ahead of time.

Best practices for responsible grantmaking

Traditionally, grantmaking is an arena of the rich and powerful. OCF's grantmaking policy allows communities to distribute money to individuals in a way that is compliant with the tax code and also centers the on-the-ground needs of those communities. We respect and trust your relationships with and understanding of your own communities, and put you in the driver's seat when it comes to making grants. We streamline the process as much as possible, and handle the IRS reporting side for you, and try to create a system that encourages equitable grantmaking practices.

Trust-based grantmaking

• All transactions are transparent by default (but grantees can keep their real names private if they wish)

• The platform makes it easy for grantees to request payouts of funds

• The application and final reporting processes, defined by the rules IRS, minimize administrative burden for grantees as much as possible, placing Collective admins in a supportive role alongside grantees

• Grantees have the opportunity to update the grantmaker and the public on their work through Updates

• It's easy for grantees to extend or adjust their project as required

Recommended practices

The ability to make grants is just one piece of the puzzle. While OCF holds the line on the outer bounds of compliance, you and your team still have to work together on creating a grantmaking practice that centers equity and justice, and accounts as much as possible for the power imbalance inherent in the grantmaker-grantee relationship. Thankfully, there is a great deal of information out there to help you cultivate an efficient and equitable process.

• Offer multi-year grants and/or the option to renew funding

• Offer grants for general support, rather than for a specific project (NOTE: this is only possible for grants to individuals in cases of poverty relief)

• • The burden of researching a potential grantee (i.e., due diligence) would then fall on you, the grantmaker

• Accept applications online (yes, some foundations still request applications by mail)

• Be open and transparent about their decisionmaking process, and solicit feedback

• Offer ways they can support grantees outside of just financial assistance

Participatory grantmaking

Even with all of the above practices in place, there is still a significant power imbalance between the grantmaker and the grantee.

Participatory grantmaking takes many forms:

• Inviting grant applicants to vote for which applicants should be funded

• And much more!

Open Collective Foundation fully supports Collectives' exploration of participatory grantmaking. We invite you to explore available guides and tools to cultivate a process that works for you:

Getting started

En primer lugar, ¡enhorabuena! Has sido seleccionado para recibir fondos de un Colectivo que utiliza Open Collective Foundation como "patrocinador fiscal" (¿qué es eso?). A continuación encontrarás algunas indicaciones para el resto del proceso de subvención.

1. Acuerdo de Subvención

Una vez seleccionado para una subvención, un Administrador del Colectivo enviará tus datos y la información de la subvención al equipo de Open Collective Foundation (OCF).

Luego redactaremos un acuerdo de subvención que deberá ser firmado por nosotros, un Administrador del Colectivo y por ti.

El documento puede parecer muy largo y legalista, pero para que lo sepas, la mayoría de las páginas se componen de la Política de Subvenciones estándar de OCF, la información presentada para solicitar la subvención y nuestros Términos estándar de subvención, donde básicamente se establece que seguirás la política y que confirmas que la información proporcionada es correcta.

Por favor, ten en cuenta que pedimos a los beneficiarios que rellenen un formulario W9 como parte de este proceso, pero esto es sólo como medida de precaución para aquellos casos en los que alguien utilice indebidamente los fondos de la subvención. No lo enviaremos al Servicio de Impuestos Internos (o IRS, por sus siglas en inglés) y la subvención no se declarará como ingreso tributable siempre que se cumplan los términos de la Política.

2. Desembolso de la Subvención

Los fondos se desembolsan a través de la plataforma OpenCollective.com, una herramienta que ayuda a grupos de base a gestionar el dinero de forma transparente y colaborativa.

Una vez firmado el Acuerdo de Subvención, recibirás una "invitación de gasto" del Administrador del Colectivo (que se recomienda a las personas que no estén familiarizadas con la plataforma Open Collective) o tendrás que presentar un Gasto.

Al hacer clic en el enlace a OpenCollective.com en tu correo electrónico, es posible que te lleve a la versión en inglés de la plataforma. Para cambiar el idioma a español, desliza hacia abajo y utiliza el menú desplegable situado en la parte inferior de la página para cambiar el idioma a español.

La plataforma debería guiarte a través del proceso, pero avísanos si tienes algún problema. El Colectivo y un miembro del equipo OCF revisarán el Gasto antes de abonarte los fondos. Gastos pueden abonarse mediante transferencia bancaria o PayPal.

Documentación de la Subvención por Condiciones de Vida Difíciles

Pedimos que incluyas en el gasto cualquier prueba disponible sobre cómo utilizará los fondos, por ejemplo una descarga/escaneo/foto de una factura pendiente, documentación que muestre el importe de tu alquiler/renta, etc.

Entendemos que las personas que reciben Subvenciones por Condiciones de Vida Difíciles ya tienen mucho que hacer, así que envía la documentación que puedas ahora (esto nos ayuda a informar al IRS sobre las subvenciones) y luego agrega cualquier documentación que obtengas más tarde como un comentario en el Gasto. Por ejemplo, en el caso de ayudas para el alquiler, si puedes obtener recibos o confirmación del propietario tras el pago, también sería útil para nosotros.

Privacidad y Transparencia

Si eres nuevo en Open Collective, ten en cuenta que puedes establecer un "nombre para mostrar" diferente de tu nombre legal. Por defecto utilizamos la transparencia, pero entendemos si tu situación requiere que se muestre públicamente un nombre diferente. Para establecer un nombre legal diferente de aquel para mostrar, haz clic en tu avatar en la parte superior derecha y selecciona "Configuración", luego añade un nombre legal y cambia tu nombre para mostrar según sea necesario.

Ten en cuenta también que todos los gastos y archivos adjuntos son privados y sólo pueden ser vistos por ti y los administradores.

Preguntas Frecuentes

¿Son ingresos tributables?

No podemos darte asesoramiento fiscal, pero hemos diseñado este programa partiendo de la base de que no debería constituir un ingreso tributable para los beneficiarios. Tendrá que hablar con un asesor fiscal para estar seguro.

Tengo otras preguntas. ¿A quién puedo dirigirme?

Si el Colectivo no puede responder a tus preguntas, no dudes en ponerte en contacto con nosotros.

Si has presentado un Gasto, también puedes dejar allí un comentario y lo recibiremos.

Grants to 501(c)(3) public charities

If you would like to make a contribution to another 501(c)(3) public charity aligned with your Collective's mission, we need only review their IRS Determination Letter. Have the organization submit an expense and attach their 501(c)(3) IRS determination letter to the expense.

Grantmaking programs with only charity recipients

We are happy to work with you to develop a grantmaking program that meets your needs. Your Collective will take the lead on applications and reports, but if you develop any agreements related to your program, we will need to be involved. Reach out to tak this through.

Taxable grants to other entities

It is sometimes appropriate for Collectives to distribute grants aligned non-charities with their mission but that do not meet the requirements outlined in the OCF Grantmaking Policy. These sorts of distributions are only allowed on a case-by-case basis. Please reach out to us to discuss if your Collective's mission does not fit with the aforementioned policy.

Firstly, congratulations! You have been selected to receive funds from a Collective that uses Open Collective Foundation as its "fiscal sponsor" (what's that?). Below are some tips for the rest of the grant process.

1. Grant Agreement

Once you are selected for a grant, a Collective Admin will submit your information and the grant information to the Open Collective Foundation (OCF) team.

We will then put together a grant agreement that will need to be signed by us, a Collective Admin, and by you.

The document may look very long and legalistic, but just to let you know, most of the pages are made up of OCF's standard Grantmaking Policy, the info submitted to propose the grant, and our standard grant Terms, which basically state you will follow the policy and that you confirm the information you've provided is accurate.

Please note, we do ask grantees to fill out a W9 form as part of this process, but this is only as a precaution for cases where someone misuses grant funds. We will not submit it to the IRS and the grant will not be reported as taxable income as long as the terms of the Policy are followed.

2. Grant Disbursement

Funds are paid out using the OpenCollective.com platform, a tool that helps grassroots groups manage money transparently and collaboratively.

Once the Grant Agreement has been signed, you will either receive an "expense invitation" from the Collective Admin (which is encouraged for people unfamiliar with the Open Collective platform) or will need to submit an Expense.

When you click on the link to OpenCollective.com in your email, you may be taken to the English version of the platform. To change the language to Spanish, scroll down to the bottom and use the drop-down menu at the very bottom of the page to change the language to Spanish.

The platform should guide you through the process of setting things up, but let us know if you have any trouble. The Collective and a member of the OCF team will review the Expense before paying funds out to you. Expenses can be paid out to you via bank transfer or PayPal.

Hardship Grant Documentation

We ask that you include in the expense whatever evidence is available about how you will use the funds, for example a download/scan/photo of an outstanding bill, paperwork showing your lease/rent amount, etc.

We understand people receiving Hardship grants already have a lot on their plate, so just submit what documentation you can now (this helps us deal with reporting to the IRS about grants) and then add any documentation you get later as a comment on the Expense. For example, in the case of rent relief, if you can get receipts or acknowledgement from the landlord after paying, that would also be helpful for us to have on file.

Privacy and Transparency

If you are new to Open Collective, please also be aware that you can set a "display name" that is different from your legal name. We default to transparency, but understand if your situation requires a different name be shown publicly. To add a legal name that is different from your display name, click on your avatar in the upper right and select "Settings," then add a legal name and change your display name as needed.

Please also note that all expense uploads and attachments are private and can only be seen by you and the admins.

FAQ

Will this be taxable income?

We cannot give you tax advice, but we have scoped out this program under the presumption that it should not be taxable income for recipients. You will need to speak to a tax advisor to be sure.

I have other questions. Who can I contact?

If the Collective cannot answer your questions, please feel free to contact us.

If you have submitted an Expense, you can also leave a comment there and we will see it.

What is cash assistance?

Cash assistance refers to giving out money, via services like Venmo and Cash App, distributing gift cards, or withdrawing cash from an ATM and handing it out.

Terminology

For the purposes of this policy, we will refer to the person in the community who receives the cash as “Recipient” or together “Recipients” and the person who distributes the cash and seeks reimbursement on the Open Collective platform (“Platform”) as “Volunteer” or together as “Volunteers”.

Why do we need this policy?

The Platform is designed to directly interface with Recipients of funds disbursed from Collective (“Collective” and together “Collectives”) budgets, through expenses submitted online and paid by bank transfer or PayPal. The Platform collects required data and documentation, and expenses go through an approval process. These steps are an important way that OpenCollective Foundation (“OCF”) fulfills its oversight and compliance role as a 501(c)(3) fiscal sponsor.

However, OCF understands that there may be situations where it’s not possible for Recipients to submit an expense through the Platform and provide the required information. This may be due to a Recipient’s lack of a bank account or internet access, or during responses to emergencies or natural disasters.

In these cases, Collectives sometimes seek to run a cash assistance program, where a Volunteer disburses cash to Recipients and then seeks reimbursement by submitting an expense on the Platform.

As a 501(c)(3) nonprofit organization, we must provide evidence and data about the use of all funds to the IRS and auditors on an annual basis. Therefore, the purpose of this policy is to set out how OCF can enable Collectives to run cash assistance programs while still meeting OCF’s compliance obligations and oversight responsibilities.

When can cash assistance be used?

Cash assistance should only be used after authorization has been provided by OCF to the Collective (as outlined in detail below) AND only when there is genuinely no way for the Recipient to submit an expense directly through the Platform. If this isn’t the case, OCF may deny requests to reimburse cash assistance payments.

Wherever possible, the Recipient should submit an expense directly on the Platform instead of going through cash assistance. Cash assistance is for people who can't provide receipts, don't have a bank account they can get paid into, or otherwise can't submit their own expense. Please note, such expenses need to include receipts for reimbursement, such as a paid phone bill, and can't be a request for cash. If they need cash upfront, please proceed with the cash assistance process below, or consider making a grant.

Please note that the invite expense feature can enable someone more familiar with the Platform to fill out most of the required information for an expense. Then, the Recipient will get an email and will simply need to confirm. This can result in more people being able to directly submit their own expenses, and should be used where possible.

All transactions over $600 via payment apps may be taxable for the Recipient. Collectives should exercise judgement when transferring money via these services and use our built-in payment tools when possible.

Funds may not be distributed via check or money order.

Process for authorization of cash assistance programs

1. The Collective submits information to OCF describing the cash assistance program it wishes to run (see below).

2. OCF reviews the proposed cash assistance program.

3. If the program proposal is approved, the Collective organizer signs the OCF terms of fiscal sponsorship.*

4. Volunteers distribute cash payments to Recipients as described in the program proposal, and collect certain information about the transactions (see below).

5. Volunteers submit a reimbursement expense to the Collective budget on the Platform, including the required information (see below).

6. OCF reviews the reimbursement expense to ensure it contains all of the required information and fits the context of the overall cash assistance program, and then proceeds to reimburse the Volunteer.

* This refers to the standard terms of fiscal sponsorship that all Collectives agree to when they join OCF. For cash assistance programs, OCF requires a fully signed version instead of just checking a box during signup.

Cash assistance program proposal

To receive approval for a cash assistance program, Collectives must provide the following information to OCF:

1. A name for the cash assistance program.

2. The intended impact—how this helps achieve the charitable mission of the Collective.

3. The intended Recipients (as a group, i.e. which communities, characteristics, or situations).

4. The criteria or method of selecting Recipients and determining amounts to disburse.

5. Why cash assistance is necessary (i.e. why Recipients are not able to submit expenses to get paid directly on the platform).

6. The anticipated amounts to be disbursed, per Recipient or payment, and overall for the program in total.

7. The timeline for the cash assistance program (start and end dates, or indefinite).

How to submit a program proposal

Where possible, OCF prefers Collectives to post the above information as an Update on the Collective's page of the Platform in a style appropriate for the community of supporters of that Collective, for transparency and for ease of referencing program narratives when processing expense reimbursements.

If a Collective does not wish to make a public post for its proposal, it may submit the information to OCF privately.

In either case, to submit a proposal, fill out this form, which asks for the link to an Update or for the program details to be filled out.

How to submit a reimbursement expense

To get reimbursed for cash assistance payments, Volunteers go to the Collective’s page on the Platform and select “submit expense”, then select the reimbursement option and proceed to fill out the information required on the “submit expense” form and detailed below.

Required info for reimbursement expenses

Cash assistance reimbursement expense requests from Volunteers need to include certain information at different amount levels (in addition to the standard information required when submitting an expense, such as the Volunteer’s payout method details).

1. Data per cash assistance disbursement:

   a. Name of recipient

   b. Amount disbursed

   c. Date disbursed

   d. What the funds will be spent on (e.g. groceries, rent, medicine)

   e. Any recipient contact info available (phone number, address)

2. ATM cash withdrawal slip or gift card purchase receipt

3. Payment app receipt, e.g. Venmo, CashApp

4. Volunteer W9 on file

5. Hard evidence of what the funds were used for, e.g. hospital bill, rent payment confirmation, grocery store receipt.

What this means:

• For most cash assistance payments, volunteers do not have to require documentation or paperwork from recipients, just info they can collect verbally on the spot.

• Every cash assistance reimbursement expense must include a list of recipients and transactions as described in 1.

• If a single volunteer seeks reimbursement for more than $600 per year, we need their W9 (these forms will not be submitted to the IRS, just kept on file in case any misuse of funds is discovered)

• Once the $5,000 threshold is reached, the requirement for evidence goes up. In most cases over $5,000, it will be easier to have the recipient submit an expense to OCF directly instead of using the cash assistance process.

Do not submit the above information in another attachment separate from the payment receipt. Include it as a private note (in that box on the expense screen) or as a comment on the expense page. (Separate attachments make it harder for OCF to locate the info in the database later).

Privacy and personal information

The Platform is designed for transparency, so it’s important to keep in mind what will be made public. Do not put a Recipient’s private info in public areas:

Public: Expense titles, description, and amounts.

Private: Attached receipts, private notes (a text box you can write in at the time of submission), and comments (which you can post after submission).

Therefore, we ask for Recipient details to be on the receipt attachment or in a note or comment on the expense.

Batch payments

Volunteers may submit multiple cash assistance disbursements in a single reimbursement expense, as long as the required info for each individual Recipient and disbursement is included. The Platform allows uploading multiple receipts in a single expense.

Outside accounts

If a Collective uses services like Venmo or Cashapp, Volunteers’ personal bank accounts, or any other account or service outside the Platform, for a cash assistance program or any other purpose, it must be in compliance with OCF’s Outside Accounts Policy. Under no circumstances are Collectives allowed to receive money to an outside account and distribute it as part of a cash assistance program without first transferring the funds to OCF.

Rejecting reimbursements

If any of the required information is missing, or the Collective’s cash assistance program has not been approved by OCF, reimbursement requests from Volunteers may be denied.

More Info:

Read our Policies Update / Watch our Webinar to learn more.

A donor advised fund is a centralized charitable account that helps individuals, families, and businesses to efficiently distribute their charitable contributions.

Technically, the organization hosting the fund has full discretion of the use of the funds. In practice, the donors control how the funds they contributed to the donor advised fund are distributed. There are benefits to donors who use such a fund, but we’ll leave all that to your tax advisor.

For more information on donor advised funds, we recommend the following resources:

Donating from a DAF

Every donor advised fund has a slightly different process!

No matter which method they use, when you initiate the contribution, please make sure to include the name of the Collective as the “designation” for this gift or include it in another available comments or notes field. If there is no place to do this, email us with donation details (Date, Amount, Donor/DAF Name) so that we know where to allocate the funds.

OpenCollective Foundation (“OCF”) is a comprehensive Model A fiscal sponsor, meaning our service is designed for unincorporated Collectives (“Collectives” and individually as an “Collective”) that don’t have a separate legal entity of their own. This policy explains the rules for cases where a Collective under OCF’s umbrella is also related to an external incorporated entity or EIN.

The OpenCollective Foundation Terms of Fiscal Sponsorship state:

6. In the event that Sponsee receives funding outside of the Platform (that which does not go directly into the Fund), Sponsee will immediately transfer such funds to Sponsor for deposit into Sponsee’s Fund; at no time shall Sponsee hold any funds for the Collective outside of the Fund or utilize the services of any other fiscal sponsor during the Term of this Agreement.

Funds for Collectives that OCF fiscally sponsors must be held by OCF, and the baseline policy is that Collectives cannot use outside entities to perform any activities under this fiscal sponsorship relationship.

However, there are some cases where exceptions may be possible, as set forth below.

Why we need this policy

Regulations disallowing nonprofits from funneling money to outside entities, such as for-profit organizations, are in place to ensure that funds donated to charity are spent in furtherance of charitable purposes, and to prevent 501(c)(3) structures from being used for tax evasion or other illicit purposes.

OCF has a responsibility to protect its reputation and 501(c)(3) status for the sake of all Collectives under its umbrella, and violations of this policy by a single Collective can put that at risk. OCF has a reporting obligation to the IRS and must also undergo annual comprehensive audits.

As such, OCF must ensure that funds for all Collectives under its 501(c)(3) umbrella are being legitimately used for charitable purposes, and that tax deductibility for donations is being correctly handled. OCF is not able to perform its oversight role effectively if Collective operations are managed through an outside entity.

How Outside Entities May Be Used

Outside entities may be allowed if all the following criteria are met:

• The Collective must inform OCF about the existence of the outside entity and explain how the below criteria will be met.

• The Collective and the outside entity must have completely separate and distinct names, missions, activities, and budgets.

• Only donations to the OCF-hosted Collective qualify for tax deductibility under OCF’s 501(c)(3) status—this must be made explicit to donors, and it must be clear which entity the donor is giving to.

• Except as otherwise provided for in this policy, money cannot flow from the OCF Collective budget out to a related outside entity. However, the related outside entity may donate to the OCF Collective.

• If the outside entity is performing any services for which it intends to invoice the Collective budget, a signed contract must be in place between OCF and the outside entity, covering which services will be performed, payment terms, and how the services help achieve the charitable mission of the Collective.

• Any contracts between OCF Collectives and outside entities must be reviewed and signed by OCF staff (hosted Collectives are not legal entities that can enter contracts independently, nor are Collective participants authorized to act as agents of OCF for legal purposes).

• An entity seeking to run a charity program (fitting within OCF's mission) associated with their brand but separated from its commercial operations. Reminder: the Collective and the outside entity must have completely separate and distinct names, missions, activities, and budgets.

• A dormant entity that was previously used for 501(c)(3) activities prior to joining OCF, as long as it’s not active during the term of OCF fiscal sponsorship.

• Contracting an entity owned by or associated with Collective participants to provide legitimate services genuinely related to furthering the Collective’s charitable mission, as long as a signed services contract between the entity and OCF is in place.

• Spending down a grant held by a previous 501(c)(3) fiscal sponsor where it’s not possible to move the funds to OCF (as long as OCF is made aware, in writing).

• Moving money through outside entities in compliance with the Outside Accounts Policy.

• Receiving donations from an outside entity for the hosted Collective (as long as money isn’t flowing in the other direction from the Collective to the outside entity).

• Selling products or services through a distinct and separate outside entity where the proceeds are then donated to a Collective under OCF (as long as buyers are made aware that their purchase is not a direct donation and isn’t tax deductible, and that the Collective and the outside entity are separate and distinct).

• Simultaneously having another fiscal sponsor while being fiscally sponsored by OCF.

• Failing to disclose the relationship between a Collective and its participants with an outside entity that is being paid from the Collective’s budget.

• Signing a contract or forming a legal agreement with an outside entity without involving OCF staff.

• Using an outside entity to enable an OCF-hosted Collective to engage in activities not permitted under OCF’s Terms of Fiscal Sponsorship or the laws regulating 501(c)(3) nonprofit organizations, including using funds for the private benefit of for profit entities or individuals, or to influence legislation or the outcome of elections.

• Moving money through OCF out to another entity and managing operational expenses from that outside entity (if this is your desired mode of operation, a 'Model C' fiscal sponsor may be a better fit).

• Representing that contributions to an outside entity are donations to charity or are tax deductible based on OCF’s 501(c)(3) status (only direct donations to OCF qualify for tax deductions).

Transitioning to an outside entity

If a Collective hosted by OCF wishes to move to another fiscal sponsor or incorporate its own entity, OCF will assist with the transition to the extent allowed by regulations.

Money donated to a 501(c)(3) nonprofit organization cannot be transferred to a for-profit entity or an individual, so in almost all cases OCF can only move a Collective’s funds to another 501(c)(3) entity. See the termination section of the OCF Terms of Fiscal Sponsorship for more details.

If you operate or desire to form your own legal entity for your Collective, you may wish to either form your own 501(c)(3) nonprofit organization or engage a Model C (pre-approved grant) fiscal sponsor instead of entering into a fiscal sponsorship relationship with OCF.

More Info:

❓ Read Is OCF Right For You? to learn more about OCF's fiscal sponsorship model.

Situations where we need to be involved

Open Collective’s platform is set up so that your Collective can have autonomy and independence, but there may be some exceptions when you need to get an OCF staff member involved. Here are some situations where you’ll need to reach out to us:

• If you choose to enter into an agreement with a third party (like a vendor or a service, contract, or a lease agreement), please email us well in advance. Since we are your fiscal host, these agreements are legally between the third party and OCF, and need to be reviewed, approved, and signed by our team.
• Groups hosted by OCF must obtain approval from OCF staff prior to the purchase of any large assets (e.g. cars, property)

  • In our Model A fiscal hosting, these types of purchases are owned by OCF, so our team must review and approve these expenses/contracts first. If you would like to make a large purchase/enter a contract for your hosted Collective, please email us contact@opencollective.foundation

• If you need to submit a grant application as Open Collective Foundation, we may need to review the grant application. You may also need documentation from us that is not available on our Official Information and Documents page. Check out our information on Applying for Institutional Grant Funding for more information on how to apply for foundation and corporate grant funding.

• If you want to distribute grant funds and/or direct cash assistance.

• If you engage in offline or in-person fundraising, so that we can make sure we are registered with the government in your state.

  • (Purely online fundraising does not need to be reported to us.)

• If you want to use an external service or platform to receive funds that is not covered in these docs, please let us know so we can make sure it is compatible. If you do not reach out ahead of time, it could cause trouble and delay fund transfers.

• If you want to sell goods or services, or provide anything tangible in return to someone giving you money (i.e. it’s not purely a donation). There are tax implications including potential sales tax and impacts on tax-deductibility. See our FAQ for more details.

• If you receive an in-kind/non-monetary donation.

• If your Collective’s mission/activities change from what you submitted in your application.

In any of these situations, or in others where you need assistance, don’t hesitate to reach out.

Restrictions and Limitations

While our goal is to help you do more, there are some limitations to what you can do as an Collective hosted by Open Collective. In order to host your Collective and all the others who are currently with us, Open Collective Foundation needs to maintain its 501(c)(3) status and remain in good standing with the IRS and other US authorities.

Please make sure to review our Terms of Fiscal Sponsorship agreement. Here are some restrictions to be aware of:

• Collectives funds must be used solely for your sponsored charitable activities. Funds used for any other purpose, such as private profit, will need to be paid back. (Note: this does not mean that you cannot be paid for your labor.)

• Funds cannot be used to support breaking the law.

• OCF cannot sponsor Collectives for which religion is a key focus of their mission, that seek to spread any particular religion, or that require members or beneficiaries to hold certain religious beliefs.

  • Further, Collectives may not have a "congregation," host religious services, have a core recognized creed and/or form of worship, or otherwise resemble a “church” as defined by the IRS.

• Collectives may not hold funds for the project in any other bank account while hosted by OCF. All funds for your Collective should be hosted with us. Review our Outside Accounts Policy for more details.

• Collectives cannot be simultaneously hosted by another organization or use another legal entity for their hosted charitable activities. Review our Outside Entities Policy for more.

• If you are engaging in political work, please make sure you are abiding by the IRS’s limitations on political activity for 501(c)(3) organizations. We wrote a friendly guide here.

• OCF Collectives are not able to take on loans. We can facilitate donations and grants only.

• We do not give/find our initatives money: We are here to support existing projects. Check here for some fundraising tips.

• Once funds enter into a 501(c)(3), they must remain in the 501(c)(3) sphere. This means if your OCF-hosted Collective closes down, your funds cannot be returned, and can either be spent on project expenses or must be transferred to another 501(c)(3) - perhaps another OCF-hosted Collective!

• Everything is managed and tracked on the Open Collective platform.

• We will receive money on behalf of your Collective and we will hold it safe and not spend it on anything else.

• Your Collective isn’t a legal entity itself, but sits under the umbrella of OCF.

• In the Terms of Fiscal Sponsorship agreement, you promise that you’ve been honest about your Collective’s mission, and will only spend the money you raise on that mission.

This international activity policy (“Policy”) sets out how OpenCollective Foundation (“OCF”) and projects fiscally sponsored under its umbrella (“Collectives”) may undertake activities involving people, organizations, or funding outside the United States (“US”).

Although OCF has donors from all over the world, our mission and impact is primarily focused on the US. There are situations, however, where we may allow certain international activities as exceptions. This Policy sets out guidelines we use to make decisions about whether to make such exceptions.

International activity that we can’t enable

• Activity involving a country or region embargoed or sanctioned by the US government;

• Payments to a country not served by our standard payment processors;

• Employing people outside of the US (however, we may be able to engage them as contractors if other criteria are met);

• Making grants or in-kind contributions to a non-US individual or organization, or “Model C”-type grantor-grantee fiscal sponsorship, except in approved exceptional cases of international humanitarian aid; and

• Initiatives focused on an international location/cause that are wholly led by American residents without demonstrated connections to that place or local project co-leaders.

International activity we may enable

Applications for fiscal hosting

Prospective Collectives with non-US elements may be approved if they meet all of the following requirements:

• Can work according to our established operational processes, including how we receive and pay out money (e.g. we cannot make payments to countries not served by our payment processors); and

• Have a significant connection to the United States and have at least one of the following:

  • An Administrator of the potential Collective that is based in the US;

  • Evidence the potential Collective has applied and been approved to receive a grant from a major US donor organization (501(c)(3) public charity, private foundation or donor advised fund, but in order to receive that grant, it must have 501(c)(3) status;

  • A main impact mission focused on the US (e.g. people organizing internationally for a US-specific cause);

  • A US-based team (e.g. a potential Collective with administrators in another country that plans to spend most of its budget paying US employees); or

Expenses

Collectives already hosted by OCF may pay international expenses, as long as the expense:

• Fits with the Collective’s approved mission and purpose;

• Follows our standard process and criteria for expense approvals and payments;

• Is a reimbursement, virtual card charge, or invoice, with the usual required documentation/evidence provided (e.g., receipts);

This mileage expense policy (“Policy”) allows volunteers of fiscally hosted collectives (“Collectives” and individually as “Collective”) under the umbrella of OpenCollective Foundation (“OCF”) and OCF employees to submit expenses for eligible travel expenses at a rate set by the IRS.

What travel may be submitted?

Mileage expenses must have been incurred for charitable purposes, meaning you must have incurred this mileage while performing services as an employee or volunteer of OCF via the Collective.

An eligible “trip” may be a single path from A to B, or a set of multiple stops performed on a single day, made using a personal vehicle (e.g., automobile or bicycle).

Volunteer Travel

Employee Travel

Contractor Travel

Contractors providing services to OCF Collectives are not eligible for mileage expense payment. They should track their own mileage over the course of the year and consult with a tax advisor about proper processes for deducting such mileage on their tax return.

Mileage Expense Rate

The mileage expense rate is set by the IRS on (at least) an annual basis:

✨ $0.655 per mile ✨

Submitting Mileage Expenses

Within 60 days of the trip, volunteers and employees of OCF may submit mileage expenses for payment using the following process:

2. • Volunteers should submit an Invoice expense, uploading the form submission copy as an "invoice." Set the description as "mileage expense." Multiple mileage form submissions maybe uploaded in a single invoice expense.

   • Employees should submit a Reimbursement expense, uploading the form submission copy as a "receipt." Multiple mileage form submissions maybe uploaded in a single reimbursement expense.

3. A Collective Admin will review the expense and approve if it meets their requirements.

4. OCF staff will review the expense and pay it if it meets the requirements of OCF policies.

Multiple trips may be included in a single expense.

Active Automobile Insurance

Volunteers, employees, and contractors incurring mileage while performing services for OCF Collectives using an automobile must have active automobile insurance.

Returning Excess Funds

In the event of any excess mileage expense provided, you must return such excess amount within 120 days after the expense was paid or incurred. An excess amount is any amount you were paid that is more than the mileage expense that you adequately accounted for to OCF via your Collective’s page.

Our Mission

The Open Collective Foundation’s mission is to provide a simple, open, lightweight path for Collectives and communities to operate through a 501(c)(3) entity.

We provide Fiscal Sponsorship as a service, with a tech-enabled, open finances infrastructure for ideas and communities to come to life. Our focus is on nonprofit Collectives that increase access to educational resources and training with an emphasis on open source technology; create a positive social impact; and develop tools to improve civic participation.

Our Vision

Open Collective Foundation leads and enables change by providing communities with the tools for sustainability they need to be financially independent and thrive. By unblocking funding, we unblock their ideas and catalyse their impact.

Collectives who are trying to do good in their community are forced to jump through many bureaucratic hoops, using up their precious time and energy: setting up a legal entity, paying lawyers and accountants, getting a bank account and creating a budget tracking and expense approval system, deciding which individuals will take responsibility in the name of the community, and going through the onerous process of establishing a 501(c)(3). The weight of all this means that many social impact Collectives are stifled before they can start.

Collectives need a flexible, lightweight, instant organizational structure in order to thrive. It’s our mission to provide that.

We seek to tackle inequality by removing the friction and barriers that Collectives face in order to receive and manage funding. By bridging the gap between donors and social impact Collectives, we unlock their potential, enable them to focus on their missions, and thus accelerate their impact.

Our Goals

The goal is to assist positive impact Collectives by giving them access to the financial and legal structures, knowledge, tools, and resources they need.

• Collectives gain:

  • Tax-deductible donation status with the IRS

  • Access to get money in and out faster than traditional fiscal sponsors

  • A legal entity that can act and enter contracts on their behalf

  • Transparent and public money management, powered by a tech platform that naturally and automatically leads to following best practice

  • Open-source crowdfunding, expense management, grant applications

  • Expert support for applying for and distributing grants

  • Automated real-time quantitative reporting, and powerful, low-overhead tools for qualitative reporting

OCF is an umbrella fiscal sponsor organization that supports its Collectives using established **** community guidelines, and a powerful tech-enabled system that ensures compliance and proper documentation and use of funds. We oversee and manage all aspects of governance and execution in collaboration with the Collectives under our umbrella.

Our Values

Trust & Transparency

• Funders, partners, and Collectives feel safe giving us money to manage.

• We protect our reputation as a shared resource relied on by all our stakeholders.

• Our operational processes and execution reliably live up to expectations.

• We meet needs around liability, risk, professional advice, and compliance.

• We leverage our structures, brand, and track record to unlock funding opportunities.

• While we’re open to experimentation, we remain stable in a changing world.

• Transparency is a big way we build trust, including transparency of our Collectives and of our own operations and governance.

• We trust Collective leaders and give them as much autonomy as possible over their budgets, while ensuring they follow best practice and regulations.

• We act as a bridge between the tech and nonprofit worlds, bringing together grassroots organizers and institutional funders.

• Our platform delivers transparency automatically, in order to drastically increase the real transparency of Collectives and funding.

• We provide engagement and reporting tools that help Collectives build trust with their funders, community, and stakeholders.

• We trust Collectives to autonomously make their own decisions about their money (while ensuring activities meet compliance regulations and maintain trust with their supporters).

• We trust funders to give directly to the Collectives they want to support.

Collectivism

• We believe in creating positive impact through creating commons and partnerships.

• Our voice represents all the Collectives under our umbrella, and we use it wisely.

• We support practices and tools that help our Collectives work effectively as collectives (not bottlenecking on a single individual).

• We serve our Collectives both as discrete projects and as a community.

• We choose cooperation above competition, and collaboration above individualism.

• Our structure, legal status, and brand are common resources that we lend to Collectives wherever possible to increase their impact and open doors.

• We believe society at large should also be an equitable collective, and we work to close its many gaps and inequalities.

• For society to function as a collective, we must be dedicated to removing barriers to civic and economic participation, and we see our mission of positive impact through the lense of systemic equity and social justice.

Service

• We are here to serve the nonprofit missions of our Collectives and funders; our mission is to amplify their missions.

• We are operationally efficient and our processes enable progress, not slow it down.

• We use technology to empower Collectives, strive to continually improve it, deeply understand it: tech-driven positive impact requires tech-driven fiscal sponsorship.

• We provide comprehensive financial management all on one platform, enabling efficient service.

• We focus on human connection; our business is numbers but people are not just numbers to us.

• We show and admit our own humanity, including imperfections, to authentically serve our mission.

• We put as much power and autonomy as possible in the hands of Collectives, funders, and their communities, to enable them to serve themselves using our tools, while ensuring best practice.

• We are responsive, enabling collective action to emergent crises in a fast moving world.

Our Mission's Impact Areas

1. Increase access to educational resources and training

2. Create a positive social impact and combat community deterioration by supporting/promoting mutual aid efforts

3. Develop tools to build a sustainable future through climate justice, internet freedom efforts, Collectives that strengthen democracy

Impact Areas Expanded

1 - Increasing access to educational resources and training

People and social movements are using technology to work together in order to build a better future, including an increasing number coming together to accelerate learning and education about technology. The Open Collective Foundation supports this educational mission.

We support Collectives that build tools and community for women and traditionally marginalized groups, in order to 1) enhance their technology facility, 2) accelerate their learning and access to STEM pathways, and 3) build their ideas. The Open Collective Foundation helps Collectives get funding to deliver programs in their communities (such as workshops, hack nights, educational meetups, pair programming sessions, and free online tutorials).

2 - Creating a positive social impact

With change comes ample opportunity to create a positive impact on society. We catalyze global social change through exploration of how society can use technology and money to increase the quality of human life, in a manner considered charitable under Section 501(c)(3).

We evaluate social impact through an equality lens. Change happens when we remove barriers for groups to access opportunities and share in public goods and when we make space for a sustainable commons. We support projects ranging from Collectives eliminating prejudice and discrimination and providing immediate relief to access to education and the arts.

We place a special emphasis on community building and diversity, shared knowledge and access to the basic building blocks a community needs to thrive and build resiliency; from public digital infrastructure and internet freedom to consciousness and mindfulness Collectives.

Finally, we are mindful that as stewards of this planet and our democracy, we need to support projects that have positive social impact for today as well as for future generations through supporting climate justice and open democracy Collectives.

3 - Fostering civic participation within cities and communities.

Open Collective Foundation fosters civic participation, looking to reduce neighborhood tensions, prejudice and discrimination, and community deterioration. We tackle inequality by hosting groups who aim to further educational access and distribution of resources to underprivileged individuals. We strive to remove barriers to civic participation, to allow everyone to access the social and policy dialogue of their communities.

We strengthen democracy by: 1) supporting technology with democratic positive impact purposes. 2) giving a platform to groups that may lack resources or financial know-how, 3) providing tools for civil engagement and discourse, 4) hosting advocacy groups that bring people together to work for their community.

Fundamentally, the Foundation aims at supporting projects in the above categories that have a positive impact in the world. We strive to close the multiple gaps and inequalities that our society continuously produces.

Governance is the structure of rules and practices used to manage and direct an organization. Governance is a function ultimately responsible for an organization achieving its mission, setting a strategy, staying in compliance with laws and regulations, and managing risk. The board of directors is the primary influence on an organization's governance, by its direct decisions, and through the processes, policies, and delegations it sets out.

OCF aspires to interpret governance through the lens of our mission & values, and our guiding principle of solidarity. Governance is a critical aspect of the compliance and oversight of OCF as a 501(c)(3) non-profit responsible for the funds of our Collectives and the public trust. Therefore, our approach to governance involves more traditional structures and functions, like overseeing annual audits and policy oversight, and more participatory processes, like the Collective-selected board seat the community will be voting on in late 2022.

Like everything about OCF, our governance approach continues to evolve as we grow and learn. And like everything at OCF, we welcome questions and feedback about it.

Although receiving funds through the Open Collective platform is the swiftest, most direct & efficient way to receive funds, OCF’s hosted Collectives can also use some external third-party tools to receive funds for their Collective.

💡 Most Important Things to Remember When Using a 3rd-Party Fundraising Tool:

This includes tools like Venmo, CashApp, Patreon, Bonfire, Shopify, GiveButter. See more about how OCF handles merchandise sales.

• Be sure to review our Outside Entities Policy and Outside Accounts Policy before moving forward with any of these options

• You must reach out to us if you would like to use one of these third-party platforms. We may already have an account on the platform, in which case we will help you get things set up. It will also speed up the process of getting the funds into your budget.

• Since you are part of Open Collective Foundation, funds will need to go directly to us, and then we’ll make sure they go into your Collective’s budget.

• Since moving funds from these sites into your balance is a manual process, and due to external platforms’ own unique disbursement processes, the funds will not reach you as quickly as those raised through Open Collective platform. There will likely be delays.

• OCF will charge our standard fee on funds raised on the external sites.

• Unless otherwise specified, we will batch donations arriving from 3rd-party platforms and disburse to your Collective 1x/month.

Third-Party Tools

OCF offers limited support for integrating with 3rd party tools and apps.

Some of our available options:

The tools below have been used by Open Collective Foundation's Collectives in the past and are available for OCF's hosted groups.

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The following are not set up to work specifically with fiscally hosted projects and do not report where donated funds are meant to be allocated to. This means there will be delays in the funds arriving to your account, and you must inform us whenever these are used.

If you use any of these tools, please email us.

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External PayPal Accounts

Since Collectives can receive and spend funds via PayPal from within the Open Collective platform, you should not set up an external PayPal account for receiving or spending funds. Please review our Outside Accounts Policy for more details.

Amazon Smile

OCF cannot direct funds received from Amazon Smile to specific hosted Collectives. Collectives should not use Amazon Smile to raise money for their work.

Venmo and Cash App

Unfortunately, Venmo, Cash App, and other similar services do not currently allow nonprofit accounts. Therefore, your Collective cannot send (or receive) funds from these sources directly through Open Collective.

If you raise funds on your own using these methods, please be sure to follow the processes described in our Outside Accounts Policy (and inform donors that donations made through these channels will not be tax-deductible).

In the situation where bank transfer and PayPal are not viable transfer methods, an individual on your team can send funds to the intended recipient via one of these services and then submit for reimbursement.

In the Reimbursement, make sure to include:

• the name of the indirect recipient of the funds and

• what they are using those funds for,

• if available, the receipt(s) for their activities,

• as well as the receipt from the service (e.g. Venmo) that you used to transfer them the funds.

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Other 3rd Party Tools

Let us know if you are interested in a platform not listed above and we will see if we can make it work. If you are requesting an integration with a 3rd party tool, please consider the following:

• Not all apps/tools are suitable for fiscal sponsorship arrangements (e.g. they don't allow multiple groups to use the same EIN, they have limited reporting tools that don't indicate to us where funds should be allocated)

• The tool must have a good option for monitoring the contributions (e.g. a dashboard for OCF to review contributions; detailed monthly reports),

  • in some cases, the collective can forward the reports to OCF on a regular basis

• The tool must batch raised funds and make transfers on a periodic basis (e.g. once a month); not with funds arriving 1-at-a-time

• Payments must be sent as bank transfers only (and only as per the monthly contribution amount)

• Re: donation-matching tools: mandatory fields where any 'donations matches' include the information about which Collective they support,

• The Collective must understand that there will be delays in getting these funds into their Open Collective account due to the manual processing, etc.

Expecting a Donation Match?

More info here: Donation Matching

You may have heard that 501(c)(3) organizations are not allowed to be political. That isn't quite correct, but there are limitations on what we, and by extension, our sponsored/hosted Collectives, can do.

Specifically, Collectives hosted by OCF are not allowed to engage in lobbying (e.g., for specific legislation), or political campaign intervention (including endorsing candidates). Breaking these rules could endanger our 501(c)(3) status.

• A Mini Course Produced by the IRS: Political Campaigns and Charities & the Ban on Political Campaign Intervention

• An IRS publication that might be helpful with some plain language guidance on avoiding running afoul of political activity/lobbying restrictions.

Lobbying is attempting to influence specific legislation. According to the IRS, a "substantial part" of our activities cannot be lobbying. Although technically 501(c)(3) organizations may be able to engage in lobbying to a small degree, our program does not allow Collectives to engage in it at all.

Examples of lobbying provided by the IRS include the following:

• Contacting, or urging the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation

• Advocating the adoption or rejection of legislation

According to the IRS, Political Campaign Intervention includes:

• Directly or indirectly participating in - or intervening in, of course - any political campaign on behalf of or in opposition to any candidate for elective public office

• Contributions to political campaign funds

• Public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate

These activities are completely prohibited for our hosted Collectives. (source)

Just because your Collective cannot lobby around specific potential laws or intervene in elections does not mean that it cannot engage in political activity or be involved in public policy. Examples from the IRS of activities that are allowed include the following:

• Conducting educational meetings,

• Preparing and distributing educational materials

• Otherwise, considering public policy issues in an educational manner

• Certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner (no partisan organizations way be co-sponsors!)

• Activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, if conducted in a non-partisan manner

Of course, you are entitled to your own political opinions, but you should be careful about expressing such opinions on behalf of your Collective so that you are not taking a position on a specific election or piece of legislation.

The OpenCollective Foundation Terms of Fiscal Sponsorship Agreement state:

6. In the event that Sponsee receives funding outside of the Platform (that which does not go directly into the Fund), Sponsee will immediately transfer such funds to Sponsor for deposit into Sponsee’s Fund; at no time shall Sponsee hold any funds for the Collective outside of the Fund or utilize the services of any other fiscal sponsor during the Term of this Agreement.

What are outside accounts?

An outside account is any financial account used by a Collective (“Collectives”) hosted by OpenCollective Foundation (“OCF”) that is not directly owned and managed by OCF, including Venmo, Cash App, GoFundMe, Patreon, Eventbrite, PayPal, accounts, cash boxes, personal bank accounts, business bank accounts, or any other means of storing and distributing money.

If the outside account is associated with an incorporated entity, also ensure compliance with the Outside Entities Policy.

Receiving money to outside accounts

If Collectives receive money to any outside account, the funds must be transferred in a timely manner to OCF. When OCF receives such transferred funds from outside accounts, the amount (less standard fees) will be credited to the Collective’s budget balance on the Open Collective platform (“Platform”).

Collectives may process incoming funds through external services or accounts only if the following conditions are met:

1. Donors are made explicitly aware that paying via an outside account means that their donation will not be tax deductible for them.

2. Funds collected through outside accounts are regularly transferred to OCF, not held in an outside account for more than 30 days.

Spending money from outside accounts

Collectives may not, under any circumstances, receive money to an outside account and disburse or spend those funds from the outside account without transferring them to OCF.

In some circumstances, Collectives may coordinate distributions of funds via external services or accounts and then seek reimbursement from the Collective funds held by OCF. Such payments must conform to OCF’s Cash Assistance Policy.

However, receiving money to an outside account and paying it back out again from the outside account, without first transferring the funds to OCF, is never allowed.

Transfers from outside accounts to OCF

Funds may be transferred from outside accounts to OCF via: bank transfer, PayPal, credit card, or check. To make such a transfer, the owner or administrator of the outside account or service should go to the Collective’s page on the Platform and make a contribution.

If paying through the Platform is not possible, email contact@opencollective.foundation and we will try to find an alternative method. All transfers from outside accounts must include reference info so we can correctly credit the amount to the correct Collective balance.

Why we need this policy

OCF has a responsibility to protect its reputation and 501(c)(3) status for the sake of all Collectives under its umbrella, and violations of this policy can put that at risk.

OCF must ensure that each and every dollar donated to the Collectives is counted as the revenue of OCF on its annual tax returns—the only way to do this is for the Collectives to properly transfer all funds to OCF, as required by the Terms of Fiscal Sponsorship.

In addition, OCF must ensure that funds for all Collectives under its 501(c)(3) umbrella are legitimately used for charitable purposes, and a key part of that process is keeping money in OCF-owned accounts and tracking all transactions through and on the Platform. OCF is required by the IRS and its auditors to have proper documentation for every donation and expense.

Ultimately, it is the laws of the state of California and the United States pertaining to OCF as a 501(c)(3) nonprofit organization that define the requirements of this policy.

Outside Entities

If the outside account is associated with an outside entity, the Collective is also required to maintain compliance with the Outside Entities Policy.

Policy violations

OCF will make every effort to communicate with Collectives to help them understand this policy, and work together to find solutions that meet their needs, but ultimately, if a Collective is not in compliance with this policy, OCF may terminate the fiscal sponsorship relationship.

More Info:

Read our Policies Update / Watch our Webinar to learn more.

Read Is OCF Right For You? to learn more about OCF's fiscal sponsorship model.

aka OCF, OpenCollective Foundation, Open Collective Foundation, OC Foundation

Address

Our official mailing address:

Open Collective Foundation 501(c)(3)

440 N. Barranca Avenue #3717

Covina, CA 91723

Nonprofit Status

Open Collective Foundation is a registered 501(c)(3) organization.

Financial contributions (i.e. donations) to Open Collective Foundation for the purpose of our sponsored Collectives are tax-deductible to the extent of the law.

Our EIN number (a.k.a. Tax ID): 81-4004928

Our DLN : 17053184327027

Our DUNS: 123050316

Our IRS Determination Letter:

a.k.a. Acceptance or Tax-exempt letter (which serves as proof of our nonprofit status in the United States)

Our W9:

Our California Certificate of Status:

(commonly known as a Certificate of Good Standing)

Info about Our Board of Directors:

​Financial Information

Email address for automatic notifications: contact@opencollective.foundation

IRS Form 990s

You can see our publicly-available Form 990s below, or on our Guidestar profile.

Additional financial documents, including the most up-to-date budget information and audited financials, are available by request. If you need additional information, please feel free to reach out to us.

Looking for our Fiscal Sponsorship Agreement?

It's downloadable here: Terms of Fiscal Sponsorship Agreement

You agree to these 'Terms' by checking a box when you submit your application to be hosted by OCF.

Find more Contact Info for OCF:

Introduction

This grantmaking policy (“Policy”) enables fiscally hosted collectives (“Collectives”) under the umbrella of OpenCollective Foundation (“OCF”) to become grantmakers in their communities, a variation from traditional grantmaking where a foundation or other grantmaking institution makes a grant directly to a grantee.

We use the Open Collective platform to support both transparency and agency for grantmaking Collectives and their Grantees, as well as to support OCF’s role in compliance, reporting, and expenditure responsibility.

As a fiscal sponsor and 501(c)(3) nonprofit entity, OCF holds ultimate responsibility for compliance and IRS reporting for its fiscally hosted Collectives. The relevant IRS regulations and requirements concerning grants largely determine the details of this Policy.

Within these bounds, OCF aspires to ground its approach to grants in its core values of trust and transparency. Therefore, we seek to empower Collectives in their role as grantmakers, and center their expertise about and relationships with their communities and Grantees.

Table of Contents

Know Before You Go

• Hardship: A payment to an individual as a result of a disaster or emergency hardship. Hardship grants may be made to ensure victims have basic necessities, such as food, clothing, housing, transportation, or other necessities.

• Award: A cash prize or award recognizing an individual's past accomplishment in a particular field.

• Study: A scholarship or fellowship grant for candidates for a degree at an eligible educational institution.

  • A scholarship is generally an amount paid to a student (whether an undergraduate or a graduate) to be used at an educational institution in pursuit of their studies.

  • A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research.

Below are more details on what is allowed and what is required from Collective admins (“Admins”) and Grantees.

Intention: Non-Taxable Grants

This Policy is intended to enable grants that are not taxable as income to the Grantee, and therefore allowed grants are narrowly scoped to what the IRS has specified can be tax free (as detailed for each grant category below).

If a Collective wishes to fund activities outside this narrow scope, instead of giving a grant, the Collective may invite the payee to submit a regular invoice or reimbursement expense, understanding that receipts will be required or the payment may be considered their taxable income.

Why is an IRS Form W-9 still requested?

As this Policy is designed to fit the IRS’s guidelines for non-taxable income, OCF does not issue an IRS Form 1099 to Grantees in relation to the grant funds they receive, as long as all requirements are adhered to. However, we collect an IRS Form W-9 from all Grantees at the time the parties enter into the Grant Agreement as a precaution only, for cases where grant funds are misused and OCF needs to reclassify related expenses and issue an IRS Form 1099 to the Grantee.

Grant Categories

Hardship Grants

Hardship grants which are made as a result of a disaster or emergency hardship are considered to be gifts and are excluded from the Grantee’s gross income for tax purposes (and allowed under this Policy). Grants for emergency hardship are to only be made to individuals who are financially needy or otherwise distressed.

IRS regulations define a person in need as one “who lacks the necessities of life, involving physical, mental, or emotional well-being, as a result of poverty or temporary distress”.

Examples include a person who is financially impoverished as a result of low income and lack of financial resources, a person who temporarily lacks food or shelter and the means to provide for it, a victim of a natural disaster or civil disaster, and a person who is temporarily not self-sufficient as a result of a sudden and severe personal or family crisis, such as a crime or violence.

Under this Policy, OCF will only approve Hardship grants to individuals who meet the relevant IRS definition.

Award Grants

Award grants do not need to be included in the Grantee's gross income for tax purposes (and are allowed under this Policy) if:

1. Such prize or award was made primarily in recognition of past achievements of the recipient in religious, charitable, scientific, educational, artistic, literary, or civic fields; and

2. The recipient was selected without any action on their part to enter the contest or proceedings; and

3. The recipient is not required to render substantial future services as a condition to receiving the prize or award.

Study Grants

A Study grant is tax free (and allowed under this Policy) only if the Grantee is:

1. A candidate for a degree;

2. At an eligible educational institution; and

3. Uses the grant funds for qualified education expenses.

To be considered a candidate for a degree, the Grantee must:

1. Attend a primary or secondary school or a pursue a degree at a college or university; or

2. Attend an educational institution that:

   • Provides a program acceptable for full credit toward a bachelor’s or higher degree or offers a program of training to prepare students for gainful employment in a recognized occupation; and

   • Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency.

An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it regularly carries on its educational activities.

Study grants may only be used for “qualified education expenses” which include expenses for tuition and fees required to enroll at or attend an eligible educational institution and course-related expenses (such as fees, books, supplies, and equipment required for the courses). Study grant funds may not be spent on room and board, travel, research, clerical help, or equipment and other expenses that aren't required for everyone enrolled in the course.

Single-Expense vs. Multi-Expense Grantmaking Programs

Single-Expense Grantmaking Programs may use a single Project (a feature of the Open Collective platform) for many single-expense grants, where the full grant amount is disbursed to the Grantee in a single expense.

Grants made as part of Multi-Expense Grantmaking Programs, where grant funds are disbursed over the course of two or more expenses on the platform, must have their own individual Project for recordkeeping purposes.

All Award grants are single-expense, whereas Study and Hardship grants can be either single-expense or multi-expense.

Documentation and Reporting Requirements

• Grantees to submit documentation (“Documentation”) for Hardship and Study grant expenses; and

• Collective Admins to submit reports (“Reports”) for all grant categories.

Information we report to the IRS

OCF endeavors to minimize the amount of time and effort Grantees need to spend on reporting. However, we must report certain information about every grant to the IRS, which the grantmaking process is designed to gather.

To proceed with a grant, Collective Admins and Grantees must consent to OCF reporting the required information to the IRS. OCF is responsible for all reporting about grants to the IRS. Neither Grantees nor Collective Admins are required to submit grant reports to the IRS directly.

OCF will base its reporting to the IRS about the grant on the following:

Not Allowed Under This Policy

The following activities may not be funded through grants under this Policy:

• Political lobbying, influencing legislation, influencing the outcome of elections, or voter registration drives.

• International activities and payees outside the United States.

• The purchase of goods or services for the benefit of the grantmaking Collective. For example, if a grantmaking Collective wishes to hire a contractor or intern to further its own purposes, they may not be paid via a grant. However, the Grantee may use grant funds to purchase goods and services to further the grant purposes.

• Grants to for-profit companies, nonprofit corporations, other incorporated entities, or to unincorporated groups or associations. Grants under this Policy may be to individuals only.

The following types of grants are not covered under this Policy:

• Grants to 501(c)(3) nonprofits—OCF is usually able to facilitate such donations, but they occur under a separate process from this Policy. Please reach out to the OCF team for assistance if you wish to make such a donation.

• Grants to other Collectives hosted by OCF—simply make a contribution on the Open Collective platform to the recipient, selecting your Collective’s balance as the source of funds.

• Taxable grants—types of grants that must be reported as the Grantee’s taxable income (see Taxes). Instead of giving a grant, the Collective may invite the payee to submit a regular invoice expense, understanding that the payment may be considered their taxable income.

The Grantmaking Process

The logistical process for grantmaking through OCF is as follows:

Each step of the grantmaking process is described in detail below.

Submit a Grantmaking Program

Collectives must use the selection process described in the Grantmaking Program submission for all Grantees. If the Collective wishes to change the process or criteria, they can reach out to OCF to update their Program, or start a new one. If the selection committee changes, the Collective must let OCF know. Collectives may have multiple Grantmaking Programs.

If a Collective has its own intake form for prospective Grantees, we recommend making sure that it gathers all of the information required to complete the OCF Grant Proposal form during the selection process.

OCF staff will review the application and contact the Collective once it is approved or if they have any questions or concerns.

Allocate Funds

If the grant is part of a Single-Expense Grantmaking Program, the grant funds can be allocated to the Program’s existing Project.

If the grant is part of a Multi-Expense Grantmaking Program, the Collective should create a new Project for the grant and then allocate funds.

Submit Grant Proposal(s)

We can also provide you with a partially prefilled version of the form to make this as smooth and easy as possible.

Sign the Grant Agreement

A ‘Grant Agreement’ is a legal contract that includes the terms by which OCF enables Collectives to make grants, and references the details submitted in the Grant Proposal Form. A Grant Agreement will be signed by OCF, the Grantee, and the Collective Admin at the outset of the grant.

Here is the current Grant Agreement template:

If the Grant Proposal is approved, OCF staff will send a Grant Agreement to all parties for e-signature, typically within one week of submission, if not sooner.

Extension Amendments

Submit Expenses and Documentation

Expenses

All grant payments to Grantees are made via grant ("Request Grant") expenses, which are submitted by the Grantee on the Open Collective platform using the “Request Grant” expense option. Invoice expenses and reimbursement expenses (the other expense types available on the platform) are not accepted for grant payments.

Only the Grantee may be paid from grant funds, as specified in the Grant Proposal and Grant Agreement, and expenses must be submitted using the Grantee’s Open Collective profile.

The Expense Roles are as follows:

• The Grantee submits grant expenses and receives grant payments; and

• The Collective Admin reviews and approves grant expenses; and

• OCF reviews and pays valid grant expenses.

All grant expenses must include a description of what the payment is for and an amount, along with the Grantee’s payment information. Further Documentation, details, and evidence may be required depending on the grant purpose, as follows.

Documentation

Documentation meeting the below requirements should be attached to the expense or submitted via Expense Comment.

Required Documentation for Hardship Grants

By definition, someone receiving a Hardship grant is facing extenuating life circumstances and we understand they may not always be able to submit paperwork. We have to demonstrate to the IRS, however, that our policy makes a reasonable effort to gather all required evidence and reports.

In instances where receipts are not available at the time funds are sent to the Grantee, the Collective Admin should follow up with the Grantee about Documentation. Once all funds have been disbursed and all Documentation has been received, Projects can be archived.

We will work with Grantees and Collective Admins to adapt to situations on a case by case basis as needed.

• If payments have already been made and grant funds will serve to reimburse the Grantee for these costs, receipts should be attached at the time of submission of the grant expense if they are available.

• If funds are being requested in advance, receipts documenting the subsequent use of those funds should be attached to the relevant paid expense via Expense Comment as soon as they are available.

• Especially in cases where receipts are not available, other available evidence should be attached to the expense, such as payable bill statements (e.g. utility, rent), photographs of items purchased, statements from the Grantee or Collective Admin about how funds were used, etc. These should also be attached via Expense Comment.

Required Documentation for Award Grants

• No further documentation is required for Award grants, beyond that already contained in the Grant Proposal and Grant Agreement.

Required Documentation for Study Grants

• A document confirming the Grantee’s enrollment in a degree program at an eligible institution is required to be on file before any grant expenses are paid.

• Each grant expense submitted should include line items listing a description and amount for each intended use of funds, e.g. tuition, books, etc.

• If payments have already been made and grant funds will serve to reimburse the Grantee for these costs, receipts should be uploaded at the time of submission of the grant expense.

• If funds are being requested in advance, receipts confirming use of funds in line with the expense details should be attached to the relevant expense as soon as they are available.

Submit Reports

Collective Admins must submit required Reports in the form of Expense Comments and Updates on the Open Collective platform (or facilitate Grantees to do so).

We welcome rich information about grant progress and outcomes, and encourage Collectives to use Updates as a tool for storytelling and communication about their activities, where appropriate. More Updates than the minimum required, and more information per Update, may be posted at the discretion of the Grantee and Collective Admin.

Required Reports

• Single-Expense Final Report: For single-expense grants, an Expense Comment must be posted following the single disbursal of funds. The Comment must include, at minimum, confirmation that the Grantee has complied with the terms of the Grant Agreement and, for Hardship and Study grants, a narrative description of how the grant funds were specifically used in furtherance of the grant goals and purpose. If documentation for a Hardship grant will be provided in the future, the Expense Comment should indicate the timeframe within which documentation is expected.

• Multi-Expense Final Report: For multi-expense grants, an Update must be posted following the last disbursal of funds. The Update must include, at minimum, confirmation that the Grantee has complied with the terms of the Grant Agreement and, for Hardship and Study grants, a narrative description of how the grant funds were specifically used in furtherance of the grant goals and purpose. If documentation for a Hardship grant will be provided in the future, the Update should indicate the timeframe within which documentation is expected.

• Annual Report: If the timeframe of a grant spans more than 12 months, an Update must be posted at least once per year, with a narrative description of how the grant funds were specifically used in furtherance of the grant goals and purpose during the preceding year.

• Annual Study Report: For Study Grants, a report verified by the educational institution of the Grantee’s courses and grades must also be submitted at least once per year. If the grant only involves a single payment, this Report will be provided only once.

• Extension Report: If a grant is not completed by the end of the timeframe specified in the Grant Proposal, an Update must be posted to explain the status of the grant, state why an extension is required, confirm that the grant will still proceed, and specify a new date by which the grant is expected to be complete.

• Cancellation Report: If a grant is canceled, an Update must be posted confirming the cancellation and describing how any grant funds paid out were specifically used in furtherance of grant goals and purpose (see also Returning Funds, below).

Grant Cleanup

Returning Funds

At the conclusion of the grant, the Collective Admin shall return any funds remaining in the grant Project budget to the parent Collective’s budget.

Open Collective Foundation is creating a legal, financial, and technical commons for the solidarity economy.

Open Collective Foundation allows initiatives to raise and spend money under the umbrella of our 501(c)(3) nonprofit, using a powerful open-source tech platform with financial and community engagement tools.

Open Collective Foundation exists to spread wealth and power and root it in community (the solidarity economy) by unlocking access to funding.

Solidarity is our guiding principle.

Journey to clarifying our guiding principle

At the end of 2019, Open Collective Foundation was pretty small and not very well-known. Then, things started moving, quickly. We grew 20x in 2020 alone (and went on to scale another 2.5x in 2021 and another 2.5x in 2022).

What happened in 2020?

This was all fantastic and amazing, but in all honesty, OCF grew so fast that it’s taken us some time to get our feet under us and take space to look at the bigger picture. A couple months ago, the OCF team and board began a strategy-setting process, in search of more clarity and focus.

Where do we fit in?

We asked: What connects open source projects and mutual aid and community groups and foundation grantmakers—and why do all of them resonate with OCF? We realized that our diverse initiatives, their funders, the Open Collective platform, and OCF itself, are all part of a bigger story.

It’s no accident that the same characteristics that attract mutual aid groups also attract open source projects and similar groups. They share a vision of community ownership and democratic governance for political, cultural, and economic power—known to many as the solidarity economy.

Groups that value transparency often also value cooperation, participatory democracy, intersectional equity, sustainability, and pluralism—the principles of the solidarity economy. OCF offers many of the technological, legal, and financial supports that solidarity economy groups are asking for. We believe that, instead of a world dominated by hierarchies with only a few at the top, a better society can be formed through solidarity among peers, scaling from groups of individuals right up to huge collectives of collectives.

Why is OCF a good fit for mutual aid groups? We can get them set up quickly, ready to receive and distribute money via thousands of transactions, without needing to incorporate or set up a bank account. As a 501(c)(3), we create a bridge between these unincorporated communities and donors/grants requiring a formal nonprofit.

These are the same reasons we’re a good fit for the other kinds of initiatives under our umbrella, like social movements and open source projects. We’re designed to serve highly collaborative communities that value transparency and seek to have a positive impact through the lens of solidarity, and we offer powerful tools for their collective agency.

Solidarity Economy = mutual aid + open source + collective power

Current members of OCF's board of directors

Bylaws of OpenCollective Foundation

A California Nonprofit Public Benefit Corporation

Adopted September 7, 2016

ARTICLE 1 NAME

The name of this corporation is OpenCollective Foundation (the ”Corporation”).

ARTICLE 2 OFFICES

The principal office for the transaction of the activities and affairs of this Corporation is located at 340 S. Lemon Ave., #3717, Walnut, CA 91789. The Board of Directors (the “Board”) may change the location of the principal office. Any such change of location must be noted by the Secretary on these Bylaws opposite this Section; alternatively, this Section may be amended to state the new location.

The Board may at any time establish branch or subordinate offices at any place or places where this Corporation is qualified to conduct its activities.

ARTICLE 3 PURPOSES; LIMITATIONS SECTION 3.1 GENERAL AND SPECIFIC PURPOSES

The Corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law exclusively for public and charitable purposes. The Corporation is organized exclusively for chartiable or educational purposes within the meaning of Internal Revenue Code §501(c)(3) or any successor statute; specifically, the Corporation enables individuals and groups, working together, to create and invest in projects that benefit the public by providing services and support, including fiscal sponsorship.

SECTION 3.2 PROHIBITED ACTIVITIES; DEDICATION; DISTRIBUTION 3.2.1 Prohibited Activities

(a) The Corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that do not further the purposes of the Corporation, and the Corporation shall not carry on any other activities not permitted to be carried on by (i) a corporation exempt from federal income taxation under Internal Revenue Code Section 501(c)(3) or any successor statute, or (ii) a corporation, contributions to which are deductible under Internal Revenue Code Section 170(c)(2) or any successor statute.

(b) No substantial part of the activities of the Corporation shall consist of lobbying or attempting to influence legislation by propaganda or otherwise, except to the extent that an organization exempt from federal income tax under Section 501(c)(3) of the Code can engage in such activities without incurring any penalties, excise taxes or losing its status as an organization exempt from federal income tax under Section 501(c)(3) of the Code.

(c) The Corporation shall not, directly or indirectly, participate or intervene in (including by publication or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office.

3.2.2 Dedication

All corporate property is irrevocably dedicated to the purposes set forth in Section 3.1 of these Bylaws, and no part of its net earnings shall inure to the benefit of any Director or officer of the Corporation, or any private individual, except that the Corporation shall be authorized and empowered to pay reasonable compensation to its Directors or officers for services rendered, and to make payments and distributions in furtherance of the purposes of the Corporation and subject to limitations of Sections 3.2.1 and 3.2.3.

3.2.3 Distributions; Dissolution

Upon dissolution and winding up of the Corporation, all properties and assets remaining after payment, or provision for payment, of all debts and liabilities of the Corporation shall be distributed to a nonprofit fund, foundation, or corporation that is organized and operated exclusively for charitable purposes and that has established its exempt status under Internal Revenue Code Section 501(c)(3).

ARTICLE 4 MEMBERSHIP

The Corporation shall have no members.

ARTICLE 5 BOARD OF DIRECTORS SECTION 5.1 GENERAL POWERS

Subject to the provisions and limitations of the California Nonprofit Public Benefit Corporation Law and any other applicable laws, and subject to any limitations of the Articles of Incorporation and these Bylaws, the affairs and activities of the Corporation shall be managed, and all corporate powers shall be exercised, by or under the direction of the Board. Among its general powers and duties, the Board shall take such action as it deems necessary to preserve and enhance the reputation and integrity of the Corporation.

SECTION 5.2 SPECIFIC POWERS

Without prejudice to the general powers set forth in Section 5.1 of these Bylaws, but subject to the same limitations, the Board shall have the power to:

(a) Review and approve all contributions proposed to be made to the Corporation (other than those valued at less than One Thousand Dollars ($1,000.00) (a “De Minimis Amount”)) to ensure that (i) the reputation of the donors and (ii) the receipt and intended use of such contributions are consistent with the purposes of the Corporation.

(b) Appoint and remove, at the discretion of the Board, all corporate officers, agents, and employees; prescribe powers and duties for them as are consistent with the law, the Articles of Incorporation, and these Bylaws; fix their compensation; and require from them security for faithful service.

(c) Change the principal office or the principal business office in California from one location to another; cause the Corporation to be qualified to conduct its activities in any other state, territory, dependency, or country; and conduct its activities in or outside California.

(d) Borrow money and incur indebtedness on the Corporation’s behalf and cause to be executed and delivered for the Corporation’s purposes, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations, and other evidences of debt and securities.

(e) Adopt and use a corporate seal and alter the forms of the seal.

SECTION 5.3 NUMBER

The Board shall consist of at least one (1) Director and not more than twenty (20) Directors unless changed by amendment to these Bylaws. The exact number of Directors shall be fixed, within this limit, by a resolution adopted by the Board.

SECTION 5.4 RESTRICTION ON INTERESTED PERSONS AS DIRECTORS

No more than forty-nine (49) percent of the persons serving on the Board may be “interested persons.” An interested person is (a) any person compensated by the Corporation for services rendered to it within the previous twelve (12) months, whether as a full-time or part-time employee, independent contractor, or otherwise, excluding any reasonable compensation paid to a Director as Director; and (b) any brother, sister, ancestor, descendant, spouse, brother-in-law, sister-in-law, son-in-law, daughter-in-law, mother-in-law, or father- in-law of such person. However, any violation of this paragraph shall not affect the validity or enforceability of transactions entered into by the Corporation.

SECTION 5.5 ELECTION OF DIRECTORS 5.5.1 Initial Directors

The incorporator shall designate the initial Director(s).

5.5.2 Successor Directors

Successor Directors shall be elected each year by the Board at its annual meeting.

SECTION 5.6 TERM OF OFFICE

Unless a Director dies, resigns, or is removed, he or she shall hold office for a term of two years, except as provided below. A Director may serve for unlimited consecutive terms. The Directors shall be equally divided into two classes designated as Class I and Class II, respectively. Directors shall be assigned to each class in accordance with a resolution or resolutions adopted by the Board. At the first annual meeting of the Board, the term of office of the Class I Directors shall be elected for a full term of two years. At the second annual meeting of the Board, the term of office of the Class II Directors shall expire, and Class II Directors shall be elected for a full term of two years.

SECTION 5.7 FILLING VACANCIES ON BOARD

Vacancies on the Board may be filled by approval of the Board, or, if the number of Directors then in office is less than a quorum, by (1) the unanimous written consent of the Directors then in office, (2) the affirmative vote of a majority of the Directors then in office at a meeting held according to notice or waivers of notice complying with Section 5211 of the California Nonprofit Public Benefit Corporation Law, or (3) a sole remaining Director. A Director who fills a vacancy shall serve for the unexpired term of his or her predecessor in office.

SECTION 5.8 EVENTS CAUSING VACANCY ON BOARD

A vacancy or vacancies on the Board shall occur in the event of (a) the death or resignation of any Director; (b) the declaration by resolution of the Board of a vacancy in the office of a Director who has been convicted of a felony, declared of unsound mind by a court order, or found by final order or judgment of any court to have breached a duty under California Nonprofit Public Benefit Corporation Law, Chapter 2, Article 3 or (c) the increase of the authorized number of Directors.

SECTION 5.9 RESIGNATION OF DIRECTORS

Except as provided below, any Director may resign by giving written notice to the Chairman of the Board, if any, or to the President or the Secretary of the Board. The resignation shall be effective when the notice is given unless it specifies a later time for the resignation to become effective. If a Director’s resignation is effective at a later time, the Board may elect a successor to take office as of the date when the resignation becomes effective.

SECTION 5.10 NO VACANCY ON REDUCTION OF NUMBER OF DIRECTORS

Any reduction of the authorized number of Directors shall not result in any Director being removed before his or her term of office expires.

SECTION 5.11 MEETINGS OF BOARD

5.11.1 Place of Board Meetings

Meetings of the Board shall be held at any place within or outside California that has been designated by resolution of the Board or in the notice of the meeting or, if not so designated, at the principal office of the Corporation.

5.11.2 Meetings by Telephone or other Telecommunications Equipment

Any Board meeting may be held by conference telephone, video screen communication, or other communications equipment. Participation in a meeting under this Section shall constitute presence in person at the meeting if all of the following apply:

(a) Each member participating in the meeting can communicate concurrently with all the other members.

(b) Each member is provided the means of participating in all matters before the Board, including the capacity to propose or to interpose an objection to, a specific action to be taken by the Corporation.

(c) The Board has adopted and implemented a means of verifying both of the following:

(1) A person participating in the meeting is a Director or other person entitled to participate in the Board meeting.

(2) All actions of or votes by the Board are taken or cast only by the Directors and not by persons who are not Directors.

5.11.3 Annual Meetings

The annual meeting of the Board shall be held on the first Monday of December. If the annual meeting is not held on the date designated therefor, the Board shall cause the meeting to be held as soon thereafter as may be convenient.

5.11.4 Special Meetings

Special meetings of the Board or any committee designated and appointed by the Board may be called by or at the written request of the Chairman of the Board, the President, or any two Directors, or in the case of a committee meeting, by the chairman of the committee. The person or persons authorized to call special meetings may fix any place either within or outside the State of California as the place for holding any special Board or committee meeting called by them.

5.11.5 Notice of Special Meetings

Notice of the time and place of special meetings shall be given to each Director by (a) personal delivery of written notice; (b) first-class mail, postage prepaid; (c) telephone, including a voice messaging system or other system or technology designed to record and communicate messages, either directly to the Director or to a person at the Director’s office who would reasonably be expected to communicate that notice promptly to the Director; (d) facsimile; (e) electronic mail or (f) other electronic means. All such notices shall be given or sent to the Director’s address or telephone number as shown on the Corporation’s records.

Notices sent by first-class mail shall be deposited in the United States mails at least four days before the time set for the meeting. Notices given by personal delivery, telephone, or electronic mail shall be delivered, telephoned, or sent, respectively, at least 48 hours before the time set for the meeting.

The notice shall state the time of the meeting and the place, if the place is other than the Corporation’s principal office. The notice need not specify the purpose of the meeting.

5.11.6 Waiver of Notice

(a) In Writing: Notice of a meeting need not be given to any Director who, either before or after the meeting, signs a waiver of notice, a written consent to the holding of the meeting, or an approval of the minutes of the meeting. The waiver of notice or consent need not specify the purpose of the meeting. All such waivers, consents, and approvals shall be filed with the corporate records or made a part of the minutes of the meetings.

(b) By Attendance: Notice of a meeting need not be given to any Director who attends the meeting and who, before or at the beginning of the meeting, does not protest the lack of notice to him or her.

5.11.7 Quorum

A majority of the authorized number of Directors shall constitute a quorum for the transaction of any business except adjournment. Every action taken or decision made by a majority of the Directors present at a duly held meeting at which a quorum is present shall be an act of the Board, subject to the more stringent provisions of the California Nonprofit Public Benefit Corporation Law, including, without limitation, those provisions relating to (a) approval of contracts or transactions in which a Director has a direct or indirect material financial interest, (b) approval of certain transactions between corporations having common directorships, (c) creation of and appointments to committees of the Board and (d) indemnification of Directors. A meeting at which a quorum is initially present may continue to transact business, despite the withdrawal of some Directors from that meeting, if any action taken or decision made is approved by at least a majority of the required quorum for that meeting.

5.11.8 Manner of Acting

The act of the majority of Directors present at a meeting at which there is a quorum shall be the act of the Board, unless the vote of a greater number is required by these Bylaws, the Articles of Incorporation or applicable California law.

5.11.9 Adjournment

A majority of the Directors present, whether or not a quorum is present, may adjourn any meeting to another time and place. Notice of the time and place of holding an adjourned meeting need not be given unless the original meeting is adjourned for more than 24 hours. If the original meeting is adjourned for more than 24 hours, notice of any adjournment to another time and place shall be given, before the time of the adjourned meeting, to the Directors who were not present at the time of the adjournment.

5.11.10Action by Board without a Meeting

Any action that the Board is required or permitted to take may be taken without a meeting if all Directors consent in writing to the action; provided, however, that the consent of any Director who has a material financial interest in a transaction to which the Corporation is a party and who is an “interested director” as defined in Section 5233 of the California Nonprofit Public Benefit Corporation Law shall not be required for approval of that transaction. Such action by written consent shall have the same force and effect as any other validly approved action of the Board. All such consents shall be filed with the minutes of the proceedings of the Board.

SECTION 5.12 COMMITTEES OF BOARD

5.12.1 Creation and Power of Committees

The Board, by resolution adopted by a majority of the Directors then in office, may create one or more committees, each consisting of two or more Directors and no one who is not a Director, to serve at the pleasure of the Board. Appointments to committees of the Board shall be by majority vote of the Directors then in office. The Board may appoint one or more Directors as alternate members of any such committee, who may replace any absent member at any meeting. Any such committee shall have all the authority of the Board, to the extent provided in the Board resolution, except that no committee may:

1. (a) Fill vacancies on the Board or any committee of the Board;

2. (b) Fix compensation of the Directors for serving on the Board or on any

committee;

(c) Amend or repeal Bylaws or adopt new Bylaws;

(d) Amend or repeal any resolution of the Board that by its express terms is not so amendable or repealable;

(e) Create any other committees of the Board or appoint the members of committees of the Board;

(f) Expend corporate funds to support a nominee for Director if more people have been nominated for Director than can be elected;

(g) Approve any contract or transaction to which the Corporation is a party and in which one or more of its Directors has a material financial interest, except as special approval is provided for in Section 5233(d)(3) of the California Nonprofit Public Benefit Corporation Law.

5.12.2 Executive Committee

The Board may, by a majority of Directors, designate two (2) or more of its members to constitute an Executive Committee and delegate to such Committee any of the powers and authority of the Board in the management of the business and affairs of the Corporation, subject to the limitations of Section 5.12.1. By a majority vote of its members then in office, the Board may at any time revoke or modify any or all of the authority so delegated, increase or decrease the number of its members and fill vacancies therein from the members of the Board. The Committee shall keep regular minutes of its proceedings, cause them to be filed with the corporate records, and report the same to the Board from time to time as the Board may require.

5.12.3 Permanent Committees

In addition to the Executive Committee, the Board may, by a majority of its members, designate two (2) or more of its members to constitute such permanent committees as the Board may see fit. These committees shall act in an advisory capacity to the Board, and shall be required to report their recommendations for action by the Board or the Executive Committee. These committees will meet on a regular basis and shall keep regular minutes of their proceedings, cause them to be filed with the corporate records, and report the same to the Board from time to time as the Board may require.

5.12.4 Meetings and Action of Committees

Meetings and actions of committees of the Board shall be governed by, held and taken under the provisions of these Bylaws concerning meetings and other Board actions, except that the time for general meetings of such committees and the calling of special meetings of such committees may be set either by Board resolution or, if none, by resolution of the committee. Minutes of each meeting shall be kept and shall be filed with the corporate records. The Board may adopt rules for the governance of any committee as long as the rules are consistent with these Bylaws. If the Board has not adopted rules, the committee may do so.

5.12.5 Resignation

Any member of any committee may resign at any time by delivering written notice thereof to the Chairman of the Board, the President, the Secretary or the chairman of such committee, or by giving oral or written notice at any meeting of such committee. Any such resignation shall take effect at the time specified therein; the acceptance of such resignation shall not be necessary to make it effective.

5.12.6 Removal of Committee Member

The Board, by resolution adopted by a majority of Directors in office, may remove from office any member of any committee elected or appointed by it.

SECTION 5.13 COMPENSATION AND REIMBURSEMENTS

Directors and members of committees of the Board shall not receive compensation for their services as Directors or officers, but may receive reimbursement of just and reasonable expenses related to attendance at regular or special meetings of the Board or any of its committees, at levels established by the full Board.

SECTION 5.14 INSPECTION RIGHTS

Every Director shall have the absolute right at any reasonable time to inspect the Corporation’s books, records, documents of every kind, physical properties, and the records of each subsidiary. The inspection may be made in person or by the Director’s agent or attorney. The right of inspection includes the right to copy and make extracts of documents.

ARTICLE 6 OFFICERS SECTION 6.1 OFFICES HELD

The officers of this Corporation shall be a Chairman of the Board, a Vice-Chairman of the Board, a President, a Treasurer, and a Secretary. Other officers and assistant officers may be elected or appointed by the Board, such officers and assistant officers to hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as may be provided by resolution of the Board. Any number of offices may be held by the same person, except that neither the Secretary nor the Treasurer may serve concurrently as either the President or the Chairman of the Board.

SECTION 6.2 ELECTION OF OFFICERS

The officers of this Corporation, except any appointed under Section 6.3 of these Bylaws, shall be elected by the Board to serve until a successor has been duly elected and qualified.

SECTION 6.3 APPOINTMENT OF OTHER OFFICERS

The Board may appoint and authorize the Chairman of the Board, the President, or another officer to appoint any other officers that the Corporation may require. Each appointed officer shall have the title and authority, hold office for the period, and perform the duties specified in the Bylaws or established by the Board.

SECTION 6.4 REMOVAL OF OFFICERS

An officer or agent elected or appointed by the Board may be removed by the affirmative vote of at least a majority of the number of Directors fixed by or in the manner provided by these Bylaws whenever in its judgment the best interests of the Corporation would be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed.

SECTION 6.5 RESIGNATION OF OFFICERS

Any officer may resign at any time by delivering written notice to the Board. The resignation shall take effect on the date the notice is received or at any later time specified in the notice. Unless otherwise specified in the notice, the resignation need not be accepted to be effective. Any resignation shall be without prejudice to any rights of the Corporation under any contract to which the officer is a party.

SECTION 6.6 VACANCIES IN OFFICE

A vacancy in any office because of death, resignation, removal, disqualification, or any other cause shall be filled in the manner prescribed in these Bylaws for normal appointments to that office, provided, however, that vacancies need not be filled on an annual basis.

SECTION 6.7 RESPONSIBILITIES OF OFFICERS

6.7.1 Chairman of the Board

If a Chairman of the Board is elected, he or she shall preside at Board meetings and shall exercise and perform such other powers and duties as the Board may assign from time to time. If there is no President, the Chairman of the Board shall also be the President and shall have the powers and duties of the President of the Corporation set forth in these Bylaws.

6.7.2 President

Subject to such supervisory powers as the Board may give to the Chairman of the Board, if any, and subject to the control of the Board, the President shall serve as the general manager of the Corporation and shall supervise, direct and control the Corporation’s activities, affairs and officers. The President may sign deeds, mortgages, bonds, contracts or other instruments, except when the signing and execution thereof have been expressly

delegated by the Board or by these Bylaws to some other officer or agent of the Corporation or are required by law to be otherwise signed or executed by some other officer or in some other manner. The President shall preside, in the absence of the Chairman of the Board, or if none, at all Board meetings. The President shall have such other powers and duties as the Board or the Bylaws may require.

6.7.3 Secretary

The Secretary shall keep or cause to be kept, at the Corporation’s principal office or such other place as the Board may direct, a book of minutes of all meetings, proceedings, and actions of the Board and of committees of the Board. The minutes of meetings shall include the time and place that the meeting was held; whether the meeting was annual, general, or special, and, if special, how authorized; the notice given; and the names of persons present at Board and committee meetings.

The Secretary shall keep or cause to be kept, at the principal California office, a copy of the Articles of Incorporation and Bylaws, as amended to date.

The Secretary shall give, or cause to be given, notice of all meetings of the Board and of committees of the Board that these Bylaws require to be given. The Secretary shall keep the corporate seal, if any, in safe custody and shall have such other powers and perform such other duties as the Board or the Bylaws may require.

6.7.4 Treasurer

The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and accounts of the Corporation’s properties and transactions. The Treasurer shall send or cause to be given to the Directors such financial statements and reports as are required to be given by law, by these Bylaws, or by the Board. The books of account shall be open to inspection by any Director at all reasonable times.

The Treasurer shall (i) deposit, or cause to be deposited, all money and other valuables in the name and to the credit of the Corporation with such depositories as the Board may designate; (ii) disburse the Corporation’s funds as the Board may order; (iii) render to the President, Chairman of the Board, if any, and the Board, when requested, an account of all transactions as Treasurer and of the financial condition of the Corporation; and (iv) have such other powers and perform such other duties as the Board or these Bylaws may require.

If required by the Board, the Treasurer shall give the Corporation a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the Corporation of all of its books, papers, vouchers, money and other property of every kind in the possession or under the control of the Treasurer on his or her death, resignation, retirement or removal from office.

ARTICLE 7 EXECUTIVE DIRECTOR

The corporation may employ an Executive Director who shall be appointed, employed, and discharged by the Board. If employed, the Executive Director shall manage the affairs of the corporation according to the policies, principles, practices and budget authorized by the Board, and shall be responsible for management of personnel, finances and programs. If employed, the Executive Director shall be responsible for staff management including hiring, training, disciplinary action, and discharge. If employed, the Executive Director shall serve as an ex-officio, non-voting member of the Board. For the purpose of determining the number of Directors serving the corporation, the Executive Director shall not be considered a member of the Board.

ARTICLE 8 ADMINISTRATIVE AND FINANCIAL PROVISIONS SECTION 8.1 CONTRACTS WITH DIRECTORS AND OFFICERS

No Director of this Corporation nor any other corporation, firm, association, or other entity in which one or more of this Corporation’s Directors have a material financial interest, shall be interested, directly or indirectly, in any contract or transaction with this Corporation, unless (a) the material facts regarding that Director’s financial interest in such contract or transaction or regarding such common directorship, officership, or financial interest are fully disclosed in good faith and noted in the minutes, or are known to all members of the Board prior to the Board’s consideration of such contract or transaction; (b) such contract or transaction is authorized in good faith by a majority of the Board by a vote sufficient for that purpose without counting the votes of the interested Directors; (c) before authorizing or approving the transaction, the Board considers and in good faith decides after reasonable investigation that the Corporation could not obtain a more advantageous arrangement with reasonable effort under the circumstances and (d) the Corporation for its own benefit enters into the transaction, which is fair and reasonable to the Corporation at the time the transaction is entered into.

This Section does not apply to a transaction that is part of an educational or charitable program of this Corporation if it (a) is approved or authorized by the Corporation in good faith and without unjustified favoritism and (b) results in a benefit to one or more Directors or their families because they are in the class of persons intended to be benefited by the educational or charitable program of this Corporation.

SECTION 8.2 LOANS

No loans shall be contracted on behalf of the Corporation, and no evidences of indebtedness shall be issued in its name unless authorized by a resolution of the Board. Such authority may be general or confined to specific instances.

SECTION 8.3 LOANS TO DIRECTORS, EMPLOYEES AND OFFICERS

This Corporation shall not lend any money or property to or guarantee the obligation of any Director, officer or employee without the approval of the California Attorney General; provided, however, that the Corporation may advance money to a Director or officer of the Corporation for expenses reasonably anticipated to be incurred in the performance of his or her duties if that Director or officer would be entitled to reimbursement for such expenses by the Corporation.

SECTION 8.4 CHECKS, DRAFTS, ETC.

All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or officers, or agent or agents, of the Corporation and in such manner as is from time to time determined by resolution of the Board.

SECTION 8.5 DEPOSITS

All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such banks, trust companies or other depositories as the Board may select.

SECTION 8.6 MAINTENANCE OF CORPORATE RECORDS

The Corporation shall keep, at its principal or registered office, copies of its current Articles of Incorporation and these Bylaws, correct and adequate records of accounts and finances, minutes of the proceedings of the Board and any minutes maintained by committees of the Board, records of the names and post office addresses of its officers and Directors, and such other records as may be necessary or advisable.

SECTION 8.7 CORPORATE SEAL

If the Board determines that it is advisable, the Corporation shall have a corporate seal consisting of the name of the Corporation, the state of its incorporation and the year of its incorporation.

SECTION 8.8 ACCOUNTING YEAR

Unless a different accounting year is at any time selected be the Board, the accounting year of the Corporation shall be the twelve (12) months ending December 31.

ARTICLE 9 INDEMNIFICATION

To the fullest extent permitted by law, this Corporation shall indemnify its Directors, officers, employees, and other persons described in Section 5238(a) of the California Nonprofit Public Benefit Corporation Law, including persons formerly occupying any such positions, against all expenses, judgments, fines, settlements, and other amounts actually and reasonably incurred by them in connection with any “proceeding,” as that term is used in that

Section, and including an action by or in the right of the Corporation, by reason of the fact that the person is or was a person described in that Section. “Expenses,” as used in this Bylaw, shall have the same meaning as in that Section of the California Nonprofit Public Benefit Corporation Law. On written request to the Board by any person seeking indemnification under Section 5238(b) or Section 5238(c) of the California Nonprofit Public Benefit Corporation Law, the Board shall promptly decide under Section 5238(e) of the California Nonprofit Public Benefit Corporation Law whether the applicable standard of conduct set forth in Section 5238(b) or Section 5238(c) of the California Nonprofit Public Benefit Corporation Law has been met and, if so, the Board shall authorize indemnification.

To the fullest extent permitted by law and except as otherwise determined by the Board in a specific instance, expenses incurred by a person seeking indemnification under Article 8 of these Bylaws in defending any proceeding covered by that Article shall be advanced by the Corporation before final disposition of the proceeding, on receipt by the Corporation of an undertaking by or on behalf of that person that the advance will be repaid unless it is ultimately found that the person is entitled to be indemnified by the Corporation for those expenses.

ARTICLE 10 INSURANCE

This Corporation shall have the right to purchase and maintain insurance to the full extent permitted by law on behalf of its officers, Directors, employees, and other agents, to cover any liability asserted against or incurred by any officer, Director, employee, or agent in such capacity or arising from the officer’s, Director’s, employee’s, or agent’s status as such.

ARTICLE 11 ANNUAL REPORT AND STATEMENT SECTION 11.1 ANNUAL REPORT

The Board shall cause an annual report to be sent to the Directors within 120 days after the end of the Corporation’s fiscal year. That report shall contain the following information, in appropriate detail:

(a) The assets and liabilities, including the trust funds, of the Corporation as of the end of the fiscal year;

1. (b) The principal changes in assets and liabilities, including trust funds;

2. (c) The Corporation’s revenue or receipts, both unrestricted and restricted to particular purposes;

(d) The Corporation’s expenses or disbursements for both general and restricted purposes;

(e) Any information required by Article 10 of these Bylaws; and

(f) An independent accountants’ report or, if none, the certificate of an authorized officer of the Corporation that such statements were prepared without audit from the Corporation’s books and records.

This requirement of an annual report shall not apply if the Corporation receives less than $25,000 in gross receipts during the fiscal year, provided, however, that the information specified above for inclusion in an annual report must be furnished annually to all Directors.

SECTION 11.2 ANNUAL STATEMENT OF CERTAIN TRANSACTIONS AND INDEMNIFICATIONS

As part of the annual report, or as a separate document if no annual report is issued, the Corporation shall, within 120 days after the end of the Corporation’s fiscal year, annually prepare and mail or deliver to each Director a statement of any transaction or indemnification of the following kind:

(a) Any transaction (i) in which the Corporation, or its parent or subsidiary, was a party, (11) in which an “interested person” had a direct or indirect material financial interest, and (c) which involved more than $50,000 or was one of several transactions with the same interested person involving, in the aggregate, more than $50,000. For this purpose, an “interested person” is either:

(1) Any Director or officer of the Corporation, its parent or subsidiary (but mere common directorship shall not be considered such an interest); or

(2) Any holder of more than ten (10) percent of the voting power of the Corporation, its parent, or its subsidiary. The statement shall include a brief description of the transaction, the names of interested persons involved, their relationship to the Corporation, the nature of their interest in the transaction and if practicable, the amount of that interest, provided that if the transaction was with a partnership in which the interested person is a partner, only the interest of the partnership need be stated.

(b) Any indemnifications or advances aggregating more than $10,000 paid during the fiscal year to any officer or Director of the Corporation under Article 10 of these Bylaws, unless that indemnification has already been approved by the Board under Section 5238(e)(2) of the California Nonprofit Public Benefit Corporation Law.

ARTICLE 12 AMENDMENTS

These Bylaws may be altered, amended or repealed and new Bylaws may be adopted by the vote of a majority of the number of Directors fixed by or in the manner provided by these Bylaws, or by the written consent of all Directors. If any provision of these Bylaws requires the vote of a larger proportion of the Board than is otherwise required by law, that provision may not be altered, amended or repealed except by that greater vote.

ARTICLE 13 CONSTRUCTION

Unless the context requires otherwise, the general provisions, rules of construction and definitions in the California Nonprofit Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of the preceding sentence, the masculine gender includes the feminine and neuter, the singular includes the plural, the plural includes the singular and the term “person” includes both a legal entity and a natural person.

How can I contact Open Collective Foundation? Where can I go with questions or concerns?

What is the difference between Open Collective and Open Collective Foundation?

What is the difference between fiscal hosting and fiscal sponsorship?

What are your fees?

How does paying people work?

When are payments processed?

How can people donate to my Collective?

What types of Collectives do you host?

A few example focuses include:

• solidarity and mutual aid, community fridges and food justice, community gardens and farms, land justice, time banking, abolition, the solidarity economy,

• humanitarian aid, pandemic response, bail funds, poverty and homelessness, climate justice, environmental justice, civil rights, immigrant rights,

• education, research, labor, the arts, job training, civic engagement, privacy,

• independent journalism, community radio and media, technology, community tech, digital infrastructure, governance,

• and much much more.

Can labor or tenant unions and related groups be fiscally hosted by OCF?

• Provide support to workers who face poverty or hardship (sometimes called "hardship" or "solidarity" funds)

• Help tenants fight evictions (for example, during a pandemic) and other housing justice work

• Organize the labor movement more generally

In order to make clear their distinction from the union itself, Collectives wanting to be hosted by OCF should:

2. Have a name distinct from the union, which does not include the union's name or the word "union" within it.

   • ✅ Hardship Fund for Alpha University Student Workers

   • ⛔ Alpha University Workers Union Fund

3. Focus their language on supporting workers, removing language about "unionizing" from the "about" section of their profile.

   • e.g. "Our group's mission is to support Delta Company's Workers."

4. Make clear that the Collective is not controlled by the union.

Transferring in from a different fiscal sponsor?

1. Dissolve your previous fiscal sponsorship agreement

3. Inform us that the money is en route contact@opencollective.foundation so that we can check incoming funds and add the funds to your collective upon arrival.

4. An additional (less common step) is that we may need to sign a grant transfer agreement if a large amount of funds is coming from an active grant, but that should be initiated by the funder.

Ready to leave OCF?

Learning & Reading

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Talking to a Person

Reporting a Platform Issue

The board of directors is responsible for governance.

The board of directors of a nonprofit has three primary legal duties known as the “duty of care,” “duty of loyalty,” and “duty of obedience.” Duty of Care: Take care of the nonprofit by ensuring prudent use of all assets, including facility, people, and good will; Duty of Loyalty: Ensure that the nonprofit's activities and transactions are, first and foremost, advancing its mission; Recognize and disclose conflicts of interest; Make decisions that are in the best interest of the nonprofit corporation; not in the best interest of the individual board member (or any other individual or for-profit entity). Duty of Obedience: Ensure that the nonprofit obeys applicable laws and regulations; follows its own bylaws; and that the nonprofit adheres to its stated corporate purposes/mission. However, a board of directors does not exist solely to fulfill legal duties and serve as a fiduciary of the organization’s assets. Board members also play very significant roles providing guidance to nonprofits by contributing to the organization’s culture, strategic focus, effectiveness, and financial sustainability, as well as serving as ambassadors and advocates. Beyond fulfilling legal duties, board members can be important resources for the organization.

This is distinct from the role of the operational team, OCF's staff, and executive management, which implements the day to day functioning of the organization.

Board Roles & Responsibilities

OCF has developed its definition of the role of board members to include the following:

Advice on strategic development

• Provide input on strategic direction and policies

• Provide guidance and input on strategic planning

• Serve as the ED’s backstop support and advocate

• Evaluate how well OCF is fulfilling its vision, mission and values

• Ensure policies support OCF to be accountable to its stakeholders

• Help OCF reach its best impact potential in the world

Being a our champion

• Articulate OCF vision, mission and values to the public

• Communicate OCF direction and activities to your communities

• Support and advise the Executive Director as needed

• Make introductions and help steward opportunities for funding and partnerships

Risk & compliance oversight

• Oversees the annual audit process

• Review OCF’s policies and processes for compliance and risk management

• Provide guidance to help operational decision-making align with compliance requirements

• Give feedback to iteratively improve reporting and information flows to flag risks

• Apply your knowledge of best practice and regulations to keep us on the right track

Other responsibilities

• Recruits and approves new directors, ensure the board has the right mix of skills and representation

• Approves the ED role (function and person)

• Approves any loans (though we have not taken any so far)

• Approves extraordinary expenses

• Decides on board compensation

Committees

• Risk management, audit, and finance

• Board development

OCF vs. Other Fiscal Sponsors