Foundations non profits_and_open_source
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This document discusses the considerations for open source projects in deciding whether to become a non-profit organization. It notes that becoming a non-profit requires significant costs, including $3k per year in insurance and accounting fees, as well as substantial time commitments for paperwork, board meetings, and other requirements. However, becoming a non-profit can provide benefits like liability protection, eligibility for certain grants and donations, and intellectual property assistance. The document provides advice on choosing an umbrella non-profit organization, selecting a board of directors, developing bylaws, and maintaining a focus on the community while meeting non-profit obligations.
Foundations non profits_and_open_source
- 1. Foundations, Non-Profits and Open Source Carol Smith Metabrainz Foundation, Google
- 3. Disclaimer I am not a lawyer. I am also not a tax accountant.
- 4. Does your open source project need to become a non profit?
- 6. Why not? It's somewhat expensive. It's time consuming. It's a lot of paperwork. http://www.flickr.com/photos/cseeman/4138033883/
- 7. How costly is it? ~$3k per year, of which (for MusicBrainz): $1k is insurance for board of directors liability $1k is for insurance required by hosting service $1k is for accounting services Think of it this way: If your annual budget is ~$10k, you'll spend 30% of your budget maintaining your non-profit status.
- 8. How much time does it take? Board of Directors meetings Filing paperwork Asking for donations, fundraising Talking to your tax person, talking to your lawyer, etc.
- 9. How much paperwork? Initial form 1023 to request tax-exempt status 990 forms/taxes - even if you make less than $25,000 Meeting minutes from Board of Directors meetings Bank account paperwork Website where people can access all this paperwork
- 10. Umbrella Organizations to Consider Software Freedom Conservancy Software in the Public Interest Apache Software Foundation Python Software Foundation Open Source Geospatial Foundation Eclipse Foundation Lots of other ones not on this list
- 11. So then why would you? Liability Finances Intellectual Property Employees Grants Non-monetary donations
- 12. If you do decide to Hire a great attorney Hire a great tax person Take time choosing your Board of Directors Commit to the project and the foundation
- 13. Board of Directors Select people with common interests Musicbrainz: music business, EFF, Creative Commons, now the BBC Your customers? Be clear on the time commitment
- 14. Bylaws/Rules of Incorporation They're your friends, actually!
- 15. Licensing Fees
- 16. How to be a good citizen with a foundation Consider becoming an umbrella organization yourself Continue the good citizenship you practiced with your open source project Don't let the time and money it takes to run your non-profit sacrifice your community
- 18. Questions?