Fiscal Hosting
You have a mission. Maybe it's a community garden, an open-source software project, or a local activist group. You're ready to change the world, but then you hit a wall: “How do we actually handle the money?”
That's where Fiscal Hosting comes in.
What is a fiscal host?
A fiscal host is a legally registered organization (usually a nonprofit) that can hold and manage money on behalf of projects and groups that aren't legally incorporated.
- With established legal and financial status, a fiscal host can receive funds, issue invoices and receipts, and handle payments and reimbursements.
- If your fiscal host is a nonprofit, they can provide tax-exemptions to your contributors.
- The host takes care of accounting, reporting, and regulatory compliance, so projects can focus on their work instead of administration.
Why would you need fiscal hosting?
If you need to manage money and are not a legally registered entity, you can benefit from fiscal hosting. Most crowdfunding platforms, financial institutions, and grant-makers require a registered legal entity and a business bank account.
With a fiscal host:
- You can raise money through donations, crowdfunding, or grants.
- You can pay for services, products, or reimburse people.
- You don't need your own bank account because your money is managed for you by your fiscal host using their bank accounts.
- You don't need to worry about taxes, accounting, or legal compliance. The fiscal host handles all these for you.
How does fiscal hosting operate?
Fiscal hosting enables you and your group to accept donations, receive grants, and pay expenses without the overhead of setting up your own legal entity.
Search for a fiscal host that aligns with your mission and your financial needs. Hosts usually specialize in specific locations (like the US or Europe) or specific causes (like climate action or tech), and they are only permitted to host projects whose missions align with their own legal charters.
What is a Collective?
On the Open Collective platform, we use the term "Collective" to describe a group of people collaboratively managing money toward a common goal without being legally incorporated.
A "Collective" is your "mini organization" within the fiscal host. In it you will find the tools you need to collaboratively manage your money.
Create a Collective
What are Certified Fiscal Hosts?
Certified fiscal hosts participate in the governance of the platform and are trustworthy fiscal hosting organizations.
The Open Collective platform is owned by the non-profit organization Open Finance Consortium (OFiCo). OFiCo is governed by member organizations who use and rely on the platform for their day-to-day operations and want to ensure it continues to evolve in alignment with its mission.
Member organizations who are also Fiscal Hosts are trusted fiscal hosting partners. They share and follow best fiscal hosting practices in order to provide reliable governance and financial operations.
There are many fiscal hosts on the platform for you to choose from. Those that are also OFiCo members and trusted hosts have a yellow checkmark indicator next to their names.
You can read more about certification in the platform documentation.
How to find a Fiscal Host?
To find the right fit, you'll want to consider factors such as legal status, geographic coverage, supported currencies, fees, and the types of projects they are able to host.
Fiscal Hosts usually have specific topics or areas they are designed to serve. When it comes to the application process, their acceptance criteria will fit in that scope.