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>> I think this comment by patio11 is very relevant here: > "We don't donate to OSS software which we use, because we're legally not allowed to. I routinely s
by zhte415 11y ago
>> I think this comment by patio11 is very relevant here:
> "We don't donate to OSS software which we use, because we're legally not allowed to.
I routinely send key projects, particularly smaller projects, a request to quote me a commercial license of their project, with the explanation that I would accept a quote of $1,000 and that the commercial license can be their existing OSS license plus an invoice. My books suggest we've spent $3k on this in 2015. My bookkeeper, accountant, and the IRS/NTA are united on this issue: they don't care whether a software license is OSS or not. A $1k invoice is a $1k invoice; as a software company, I have virtually carte blanche to expense any software I think is reasonably required, and I think our OSS is reasonably required.
This shoots red flags, so I'd like to share:
Anti Money Laundering:
Any auditor, bank, investor, or interested party, is required to ensure money laundering is not part of a business plan, just a compliance step. Donating to 'associate' with 'suggestions' of the price need this in some for of documentary proof for the 'suggestion'. As the software is Open Source, where's the value-added vs. throwing $1000 to a friend? S/PaaS is the answer, but it should be documented.
Anti-terrorist financing:
Yes, this is a thing (on the receiver side). Not to worry about unless your don't have multiple small transactions coming to your bank account in a short period of time (perhaps sending an email asking for donations) at which the account and ownership should be inspected by the receiving bank. Get 100 donations of varying small sizes, $1+ in a short period of time, expect to get flagged as possible.
Just a heads-up on compliance for how unexpected regulation can stop throw a small cog in the wheels of what you want to do.
- awakeasleep 11y agoNo. The point of paying them after an actual invoice is that they're running a business and have to report that income to the IRS, and you have an invoice to show the IRS for your business.
- gleenn 11y agoI think zhte415 is just saying there are some things to watch out for, not that they are disagreeing. These things make sense to me: - You need an invoice for the IRS - Sometimes bad things happen sending money - Sometimes bad things happen receiving money All this seems reasonable, so your "no" is confusing.
- zhte415 11y agoCorrect. Receiving and sending money isn't just about having an invoice, it about documenting that business decisions were made for ethical reasons. Getting a bank account suspended because of AML/ATF automatic red-flags is a major risk for any small business.
- cyphar 11y ago> >> I think this comment by patio11 is very relevant here: > > "We don't donate to OSS software which we use, because we're legally not allowed to. > I routinely send key projects, particularly smaller projects, a request to quote me a commercial license of their project, with the explanation that I would accept a quote of $1,000 and that the commercial license can be their existing OSS license plus an invoice. My books suggest we've spent $3k on this in 2015. My bookkeeper, accountant, and the IRS/NTA are united on this issue: they don't care whether a software license is OSS or not. A $1k invoice is a $1k invoice; as a software company, I have virtually carte blanche to expense any software I think is reasonably required, and I think our OSS is reasonably required. > This shoots red flags, so I'd like to share: > Anti Money Laundering: Negotiating a price isn't money laundering. If you have records of your customers, then you have proof you weren't laundering money. > Anti-terrorist financing: If you do what SQLite does (they either sell their software for $1000 or give it away gratis), then this isn't an issue.