foundations non profits_and_open_source
TRANSCRIPT
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Foundations, Non-Profits and Open Source
Carol SmithMetabrainz Foundation, Google
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Why this talk?
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Disclaimer
• I am not a lawyer.• I am also not a tax accountant.
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Does your open source project need to become a non profit?
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Probably not.
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Why not?
• It's somewhat expensive.• It's time consuming.• It's a lot of paperwork.
http://www.flickr.com/photos/cseeman/4138033883/
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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.
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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.
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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
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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
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So then why would you?
• Liability• Finances• Intellectual Property• Employees• Grants• Non-monetary donations
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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
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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
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Bylaws/Rules of Incorporation
They're your friends, actually!
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Licensing Fees
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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
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The Community Today
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Questions?