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> should the Foundation be a 501(c)(3) (a non-profit, in other words) or not? If you go the independent foundation route, choosing 501(c)(3) would be in keepin
by rectang 7y ago
> should the Foundation be a 501(c)(3) (a non-profit, in other words) or not?
If you go the independent foundation route, choosing 501(c)(3) would be in keeping with the stated priority to have Rust's governance be independent. This makes it more difficult for corporations to control the foundation's direction through insisting that their donations be used for specific purposes, because donations to a 501(c)(3) cannot unduly advantage any commercial entity.
ETA: There are different types of "non-profit" organizations under IRS code 501. 501(c)(3) is a "Charitable Organization", and donations are tax deductible. (Tax-deductible donations cannot be used to unduly advantage a commercial entity because if they were, the business could avoid paying taxes on funds they use to further their own initiatives.) 501(c)(6) is a "Business League", where donations are not tax deductible, so donors have much more leverage.
- deleted 7y ago[deleted]
- codesections 7y agoThe problem with trying to become a 501(c)(3) nonprofit is that you have to show a "charitable purpose", which can sometimes be hard to do ("supporting open-source software" is not a valid charitable purpose under current US law, sadly enough) [not legal advice]
- wrycoder 7y agoEducational 501(c)(3) foundations meet that requirement.
- tyre 7y agoI don't think this foundation would qualify. I'm so incredibly not a lawyer, but my understanding is that educational 501c3s need to be predominately educational, in that they have classes and a physical location. If the primary purpose of the Rust foundation is open source code and standardizing the language, it's not exactly educational.
- benji-york 7y agoFor what it's worth, the Python foundation is a 501(c)3: https://www.python.org/psf/ https://www.python.org/psf/
- throwawaymath 7y agoI successfully started a 501(c)(3) private foundation for precisely the charitable purpose of "supporting (scientific) open source software" in 2017. The IRS granted it with no questions asked. Also not legal advice, but I literally did it so...