Grants talk:Fiscal sponsorships

Latest comment: 2 days ago by Plantaest in topic Open Source Collective

Open Source Collective

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Hello, I'm not sure if I'm asking in the right place, but I'd like to ask whether the Open Source Collective organization (oscollective.org) is a suitable fiscal sponsor according to WMF's requirements?

As far as I know, Open Source Collective is a 501(c)(6) organization, while WMF requires a 501(c)(3). I'm not clear on the differences between these two types of organizations, as well as U.S. law in general.

Open Source Collective has a very good software platform (opencollective.com) that allows me to easily manage contributions and expenses transparently.

I hope to receive an answer regarding this issue.

Sincerely, Plantaest (talk) 19:22, 24 October 2024 (UTC)Reply

Hello @Plantaest, thank you for your question. We have not funded or encountered a 501(c)6 organization before, so will ask our tax advisors to determine whether an organization with this designation would be eligible to receive funding, especially as a fiscal sponsor. I hope to have an answer in the next week. Thank you -- Morgan Jue (WMF) (talk) 13:22, 28 October 2024 (UTC)Reply
@MJue (WMF): Thank you, Morgan. I hope to receive feedback from the tax advisors soon. Regards, Plantaest (talk) 04:29, 29 October 2024 (UTC)Reply
Hello @Plantaest, our advisors confirmed that while a 501(c)6 organization may be eligible to receive funding from a 501(c)3 organization such as WMF, it would need to demonstrate that it would be using grant funds towards a charitable purpose that aligns with the 501(c)3 organization's mission and objectives. We would also need require some extensive review from our Audit and Legal teams to ensure that we are compliant with US regulations and to confirm that the organization is not engaging in activities such as political campaigning or lobbying. Given this criteria, WMF is prioritizing funding 501(c)3 organizations at this time. I hope this helps answer your question, but please feel free to reach out to grantsadmin{{@}}wikimedia.org. Best -- Morgan Jue (WMF) (talk) 11:02, 31 October 2024 (UTC)Reply
@MJue (WMF): Thank you, Morgan and the tax advisors. Regards, Plantaest (talk) 13:15, 2 November 2024 (UTC)Reply
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