As just announced by Pia on the Open Collective Blog, we are excited to announce some changes at Open Collective and the birth of a new non-profit organization!

The current Open Collective Platform is moving and being established under our new non-profit, Open Finance Consortium Inc. 501(c)(6) (“OFiCo”). The product will stay true to its current spirit, the fundamentals will stay the same. The entire team building the Open Collective Platform is moving to our new non-profit and is continuing its work without disruption. Our goal is to make the change initially invisible to users.

The Open Collective Platform you know and love is now managed by a non-profit, governed by its members and in control of its future! We want to establish it as a well-known internet commons similar to Wikipedia or OpenStreetMap.

Open Collective Inc., our former home, will remain. Xavier Damman, one of its co-founders, is stepping up as CEO and will start a new product from there based on “web3” technologies.

This plan has been in discussion for a couple of months and is being implemented from the 1st of October 2024. We're currently actively working on this transition and going through administrative processes, legal formalities, and necessary documentation.

We're excited about what’s ahead and truly thankful for your support and trust. Your belief in us means a lot, and we’re committed to continuing our work for the benefit of all.

Onward and upward!

François, the "OFiCo" team and its founding members

With the closure of the Open Collective Foundation, Open Collective Inc.’s revenue shrunk and we came to realize that most of the income was now dependent on a single Fiscal Host: Open Source Collective. As a result, Open Source Collective asked for a change in the operating structure, willing to stop being a simple customer but a stakeholder in the future of the Open Collective Platform. Generally, the business outlook as a for-profit VC-backed company was not looking promising anymore and we felt that the Open Collective Platform was better suited to a non-profit organization.

Initially the  board of this new organization is made of the same people as the former "executive team" from Open Collective Inc.: Pia Mancini, Benjamin Nickols and François Hodierne. 

Open Source Collective and Open Collective Europe (the two largest organizations using the platform today) are founding members of the new non-profit organization and are supporting its establishment.

The new organization will be expanding its membership immediately, inviting fiscal hosts, large independent collectives, and corporate sponsors who will collectively control the board and guide the organization.

Organizations committed to financial transparency, particularly those using the Open Collective Platform, are welcome to apply for membership. Contact us!

A 501(c)(6) is a US-based non-profit, tax-exempt organization run for its members and without shareholders. However it’s not a charity, and donations are not tax deductible. Learn more about 501(c)’s.

With the support of our founding members, the new organization's budget is similar to the past year. The team, our infrastructure, and our additional legal, support, and administrative costs are all accounted for. We plan to operate with am initial budget of around $1,000,000 per year.

The pricing will evolve, mixing non-profit memberships and fees/tips for using the platform.

How does this new combined structure look exactly?

Our structure consists of a non-profit company and its wholly owned for-profit subsidiary. This approach allows us to separate the development of the Open Collective Platform from the day-to-day operation and support provided to its users. While legally required for 501(c)(6) organizations, this structure also grants us greater flexibility to enhance the platform, fostering collaboration among our members and advancing the industry as a whole.

Here is a drawing explaining a bit the setup and the people involved in it: