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In the section on getting money from the DOD, this is the first step: > If you have a large project that is getting significant usage, incorporate a 501(c)(3)
by webmaven 5y ago
In the section on getting money from the DOD, this is the first step:
> If you have a large project that is getting significant usage, incorporate a 501(c)(3) organization which will officially manage the project. Funding for the effort will live in this 501(c)(3)
Not too long ago, the IRS was clamping down pretty hard on the creation of new 501(c)(3)s, especially ones that were functioning (as they saw it) as the equivalent of businesses:
https://www.techdirt.com/articles/20140701/11470827745/irs-rejects-non-profit-status-open-source-organization-because-private-companies-might-use-software.shtml https://www.techdirt.com/articles/20140701/11470827745/irs-r...
This issue doesn't get much coverage today, but as far as I'm aware, this is still the status quo, with 501(c)(3) applications being subjected to additional scrutiny and denied regularly.
- pabs3 5y agoThere are a number of fiscal sponsors for open source out there that you can use to sidestep the need to register a 501(c)(3), for example Conservancy or SPI: https://sfconservancy.org/ https://sfconservancy.org/ https://www.spi-inc.org/ https://www.spi-inc.org/
- webmaven 5y agoSure. That's been the standard workaround for over a decade, I think. My point was that the advice being given is misleading and setting up a lot of folks for a Sisyphean task. And it is also probably setting up obstacles for getting money from the DOD, if they aren't expecting to bill a fiscal sponsor as an intermediary.