How it works on Open Collective Europe and things to know before moving
Published on February 28, 2024 by Ivan Cukeric
In the context of the joint effort of the organizations within the Open Collective constellation to provide support to the collectives currently hosted by OCF facing a sudden deadline for their activity, here is a brief description of how it works in Open Collective Europe. Hoping that it can provide viable solutions to some of them:
What is OCE
- Open Collective Europe (OCE) is a Belgian charity that facilitates the indirect representation of collectives, focusing on specific impact areas.
- OCE enables groups to raise funds from a diverse range of donors (foundations, companies, individuals) by utilizing OCE’s business name and certificates if necessary.
- OCE’s 501(c)(3) equivalency allows initiatives to receive grants from US-based charities and donor-advised funds.
- OCE maintains a Fund in the US capable of issuing tax-deductible receipts to US donors.
- OCE provides both USD and EUR-based bank accounts. Your collective can choose either of these currencies and submit expenses in any currency.
- Regarding expenses, this procedure applies.
- Hosted initiatives/collectives are not permitted to have external bank accounts. All funds must be held in the Open Collective Europe account to accurately represent your budget and activities.
Pricing-wise, the following rates apply:
- 8% fee for online (non-tax-deductible) donations,
- 10% fee for wire payments (including grants from Foundations) and tax-deductible donations from the US.
Main differences from OCF:
- OCE does not offer direct employment or EoR solutions. However, EoR can still be an option for your collective if purchased individually (some EoR companies allow this).
- OCE, being based in Europe, does not provide 1099 tax forms or fiscal declarations for admins or contributors of the collectives.
The system of indirect representation for collectives means:
- Administrators of the collective are the sole persons responsible for the collective's work.
- OCE does not own the collectives' funds, and the collectives' expenses cannot be billed to Open Collective Europe.
- Our comprehensive documentation can be found here.