Comment by kvinogradov
1 day ago
Over the last few years I've talked with hundreds of people in the dev community, and almost everyone shared the same concern: there's no sustainable funding for critical OSS maintenance, and without it the modern world runs on an increasingly fragile foundation.
I have personal experience with university endowments, and at some point noticed that the open source world is remarkably similar to a top research university. They share the same reputation-based culture and functions — collaborative creation of IP as a public good, educating each other within thematic clusters, and commercializing only a small fraction of what they produce.
For universities, humanity has just two sustainable funding models: public spending or private endowments. Government support won't work for OSS at scale — it's too globally decentralized. And yet nobody had built an OSS-focused endowment before. After understanding why, I started building one together with other OSS folks.
Today we're publicly launching the Open Source Endowment — a community-driven endowment fund dedicated to sustainably funding maintainers of the most critical open source projects. All donations are invested in a low-risk portfolio, and only the investment income (~5%/year) is used for grants, making it independent of annual budgets and tech market volatility.
We recently received US 501(c)(3) tax-exempt charity status. The fund is at ~$700K, formed by 60+ founding donors — including founders of HashiCorp, Elastic, ClickHouse, Supabase, Vue.js, Pydantic, Nginx, Gatsby, n8n, and curl. Everyone is welcome to join them and participate in governance.
There's no perfect model for distributing OSS grants. Our approach: make it open, data-driven, measurable, and developed by people with skin in the game — donors. I tested this by personally donating $5K to 800+ Python projects in Dec 2024 (https://news.ycombinator.com/item?id=42312469). We're now looking to grow our donor community and together finalize the first model for grants in Q2 2026.
This is a pure community charity, and there are two things I'd love from HN:
1) Join as a donor — any amount — and help make OSE the most efficient long-term funding solution for OSS maintainers
2) Nominate OSS projects you think are critically underfunded on the Funding page at endowment.dev
I've been working on the same libre project for more than 25 years, and making a living from it for about 15, so I have my own perspective on this.
The biggest issue that I see is that even for things that are in some respects "finished", grants on the order of $5k do not change the maintainance picture very much at all. If there's a sudden crisis with critical infrastructure, people will step. But that's precisely what we want to move away from, and to do that the funding needs to be living-wage level, not single-issue grants.
It is awesome when those grants happen, and specific new features or compatibility are worked on. But the sustainability question is really not about that kind of work, for the most part. Somebody needs to actually be the guy in Nebraska and they need to consider that their role. Possibly it is just one role among a few, but it needs to be bigger than a one-and-done $5k-sized role.
The question is really how to redirect the streams of revenue that currently flow toward capital so that the people who work on OSS can do this as a living, not a part time calling. I don't see grants as a significant part of that.
Now the Open Source Endowment is a very small organization that starts with ~$5k microgrants. It is not enough for a living but still should help maintainers not only financially but also by allocating attention.
As it grows bigger, the grant size will also grow. One can help with this by donating and bringing in new donors!
$5000 is enough to make a living in several countries.
On a global scale, likely less than 10% of the world's population has ever been able to save $5,000 at any point in their life, with the vast majority concentrated in high-income countries. In low- and middle-income countries, this is a rare achievement limited to a small, affluent minority.
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I think my point is that grants may not be the way to get what is desired. Most people need predictable, long term income. You can get stuff done with grants, no doubt. But that's not the question - the question is can you build long term sustainable maintainance mechanisms for OSS. I hope you're right and I'm wrong.
A grant can be for a lot more than $5,000. It can be for as much as the grant-making org has and wants to spend. Grants can be given on an ongoing basis as well.
A stable/predictable base of maybe 50k USD/year is probably more in the range where it could influence someone to be FOSS maintainer full-time.
> Government support won't work for OSS at scale — it's too globally decentralized... We recently received US 501(c)(3) tax-exempt charity status.
If this is successful in the first iteration, I'd love to see a UK and EU based charities too. That would allow european donors to support on a gross pay basis, and may simplify grants to european nationals too. (I'm sure similar things apply in other jurisdictions too.)
Thanks, Alex. Ticketed here:
https://github.com/osendowment/foundation/issues/26
Will take some time ofc but good to plant the seed now. :)
OSE actually has it on its roadmap: https://github.com/osendowment/foundation/blob/main/roadmap....
Most likely we won't create our own subsidiaries, but will partner with local nonprofits (suggestions are welcome), which could make donations tax-deductible for UK/EU residents.
As for grants, we are totally fine with supporting European open source maintainers now. OSE has a global scope, limited only by the available payment infra and US regulations.
> will partner with local nonprofits
mmh. be very careful when choosing those. Esp. in former socialistic countries, and esp. in some of them (hint), where $$$ scheming has become bread-and-butter of the.. kind-of-former-but-new aparatchiks.. it's like an official mafia. Electrically speaking, they manage to find ways to ground and leech on any potential.. $100 or $100M alike.
otherwise - great initiative. The Commons (as of ivan ilich) need support and care in order to be .. there when needed.
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There is already NLNet and other charities in the EU for funding FOSS.
How is this different than something like https://opencollective.com (which, for example, Actual Budget uses: https://opencollective.com/actual )
Open Collective (OC) is great! It's primarily a payments platform.
Open Source Collective (OSC, which is related to OC in convoluted ways I don't fully understand) is a fiscal sponsor of OSS projects, and is also great. :^)
Open Source Endowment (OSE), on the other hand, is a pile of money that earns interest that then gets distributed to OSS projects. So conceptually some projects either fiscally hosted by OSC or using OC as their payments platform could receive funds from OSE.
Does that help?
Edit to disclaim: I'm on the OSE board.
Open Collective (really Open Finance Consortium Inc.) is a US 501(c)(6) nonprofit that runs a payments and accounting platform, providing fund acceptance and budget services to a ton of different community collectives and funding groups, making it easier to connect funders with groups that are often not incorporated.
Open Source Collective is a separate 501(c)(6) organization that actively supports funders wanting to support FOSS projects or communities specifically. They share some board members, and they simply use Open Collective to do all the finance work, while also offering some level of advice and other IP holding services: https://docs.oscollective.org/welcome-and-introduction-to-os...
Open Source Endowment is different, in that it's soliciting 501(c)(3) donations, which the OSE board and membership will use for the endowment to choose FOSS projects/communities to provide grants for.
This topic should be a FAQ page on the OSE site, especially for funders who just want to donate "to some good FOSS" without knowing where to find it. When you donate to OSC, you pick specific collectives to give to (and it's not tax deductible). When you donate to OSE, you're giving to the endowment, that the OSE Members setup policies for how/where/when to provide grants to projects/communities (and it could be tax deductible).
Good on ya.
I work on a nonprofit platform that isn't "critical infrastructure," compared to a lot of stuff, so I'd likely not seek funding, in order to avoid stealing oxygen from the lone maintainer in Nebraska.
Just for the love of all things, do not let this become like Wikipedia or Mozilla. The moment you start paying for irrelevant things, you lose donors current and in the future. Nothing more frustrating than those two orgs in terms of where they spend their donor funds.
I am one of https://wikimediaendowment.org/benefactors (donated years ago), and now I am totally unhappy with what is happening with Wikipedia. It has been an important lesson learned.
To keep a nonprofit efficient and impactful, it is crucial for its governance to have skin in the game; otherwise, there will be no long-term alignment of interests. More details on why and how we implement this at the Open Source Endowment: https://kvinogradov.com/osendowment
As long time volunteer contributor in Mozilla (I am in the firefox credits and in the monument) it is very sad to say that I agree with you.
I have my opinion on why this is happening and my explanation is that in Mozilla they lost their memory because they act as a company and not as a foundation (they have both the identities). With the layoffs they removed a lot of people working there for years that knows a lot, they lost the historic memory and I remember a lot of discussion with employees that had no idea that there was a community or that they have no idea what is a GPL license. I mean in 2018 I remember reviewing this as part of the Mozilla Reps council, https://github.com/OpenTechStrategies/open-source-archetypes that was created to help the employee to understand OSS but I think that after the managers that created moved away it was just left as it is.
Sorry for the flame but I think that when a foundation act like a corporation there are issues.
What happened with Wikipedia? I thought they run a tight optimum ship?
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The FAQ, under "How can OSE evolve in the long term, especially in an AI-powered world?" appears to state a very pro-AI view.
I think this is hopelessly naive. The LLMs crapping out code are shamelessly ripping off open source code, sans copyright notice. It makes no sense for a foundation supporting open source to also support this massive copyright massacre.
Also, I think you're going to get flooded with requests to give money to vibe-coded crap, because if you have no skills or shame but want to make a little money off your AI-generated crap, why not try and extract money from this initiative? The curl guy showed this is very real.
The curl guy is one of OSE founding donors, together with the terraform guy who recently released an open source trust management system to help with AI-generated crap: https://github.com/mitchellh/vouch
I think that AI eventually will solve technical maintenance problems, but not human-related ones: limited attention, trust, motivation issues. And we are going to support mostly "old" projects everybody relies on, not some new AI-gen stuff.
Potential issues from new tech aside, an open-source endowment is a pro-social idea, that absolutely deserves its day.
Now, setting aside ethical issues for a moment, open-sourced knowledge, writing, history, data, Q&A, and tech is essentially a prerequisite for a data-driven technology like LLMs, and if those turn out to be a net win for humanity, then we can directly trace the routes to initiatives like this one that can curate humanity's best contributions.
> flooded with requests to give money to vibe-coded crap
And our plan is to willy-nilly give money to everyone who asks for it with no oversight or attention to other factors or human involvement. Game over. You win.
> It makes no sense for a foundation supporting open source to also support this massive copyright massacre.
Copyright is a fundamentally unethical concept and must die. Open source foundations should rightfully support the death of copyright, whether by LLMs or by other means.
Tax dollars to find software
So.... you just created a 501(c)(3) tax-exempt organization to offer grants for product development.
Yeah, this will end well.
Here are a couple salient portions of our IRS application to put your mind at ease. :^)
> In limited circumstances, the Foundation may make grants to organizations that are not described in IRC Section 501(c)(3), or to individual OSS developers, maintainers, researchers, and educators. These grants will support persons and organizations engaged in developing, maintaining, securing, documenting, or conducting research on free and open source software critical to public digital infrastructure.
> Any such grants will be made exclusively for charitable or educational purposes, with the Foundation retaining complete discretion and control over the use of funds consistent with Revenue Ruling 68-489.
[...]
> In addition to project-based grants, the Foundation will make recognition awards to individuals who have made extraordinary contributions to OSS serving as critical public digital infrastructure. These awards are analogous in structure and purpose to MacArthur Fellowships, the National Medal of Science, Pulitzer Prizes, and similar recognition programs administered by 501(c)(3) organizations.
Boldly asserting that all grants will be made exclusively for charitable or educational purposes does nothing to change the character of the grant. If you're giving money to someone for commercial product development then you're giving money to someone for commercial product development ... and if that constitutes the majority of what you do then you've got a major problem.
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clear and plain language on the website will do wonders compared to legal like comments with emoticons on HN
lets try something new
Putting capitalists in the middle doesn't seem new, more like another place they can extract a slice of the pie.
Let's back up: The way an endowment works is that donors donate money, which goes into a more-or-less permanent investment fund. The interest from the investment fund is then used to a) fund mission-aligned programs (in our case, OSS), b) stay ahead of inflation, and c) pay operating costs.
Where are you seeing capitalists "extract a slice of the pie" here?
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700k from 60+ "founding donors" = an average of 11k per person.
These are people who have net worth values in the 10's to 100's of millions of dollars and they could only give ~10k to open source software?
My goodness we're cooked. The oligarchs are so unbelievably cheap.
OSE has a diverse community of donors, and most of them are not even close to that net worth level. Around 75% of our donors contributed in $1-200k range. We think that every donation matters, and hugely respect everybody supporting open source.
May I ask what it’s the right share of net worth one should donate to OSS? And what’s this share in your personal case?
So I know you're trying to shame my by pointing out my hypocrisy here, but I assure you that I wouldn't have made the original comment there if I didn't have a leg to stand on.
I am not a high net worth individual. With a 20 year career as an IC in the tech industry though, I'm quite comfortably middle class. But even I have donated $10k to charity in a single year many times. Many tech companies offer charity gift-matching programs. I take full advantage of those by having a donor advised fund so I can capture the full gift match amount every year and then disburse those funds as desired. When I was briefly at Microsoft, they had an oddly generous gift match of up to $15k per year. I literally put up $15k of my own money each year to capture that $30k/year into a charity account for several years.
That's why I feel like I can comment critically on this. I'm a regular dude who grew up dirt-poor and ended up modestly successful in life and even I can manage to donate amounts of 10's of thousands annually.
Compared to the much more successful executive, CEO, founder class who you mentioned were among your donors. To the kind who own houses in the Los Altos hills worth 10 million plus, those numbers seem kind of paltry.
I'm not trying to take away from the success of your organization and its mission. I congratulate you on your fundraising efforts and I know you can't afford to be critical of your donors lest those donors sour on you. But truly, it does strike me how some of the wealthiest among us, who have benefited the most from these common goods, can give so little.
Not everyone operate on same consideration regarding money. The mere fact to be able to donate something that is a significant portion of a median income salary is already the privilege of the most wealthy, so more than that this is the very limited realms of the winner take it all game of the casino or the casino owner. For this class of people, money has nothing to do with what it represents to most people. So there is no way people from these distinct classes can understand each other in term "share of net worth", because they are the same words that refer to completely different realities.
They didn't get there by being nice so by definition they're cutthroat tight wads
> founders of HashiCorp, Elastic, ClickHouse, Supabase, Vue.js, Pydantic, Nginx, Gatsby, n8n, and curl
By the sound of it, we can probably expect most of the stakeholders to be less interested in critical infrastructure or anything that solves real problems for actual human beings and more interested in the kind of frivolous devops make-work that creates more problems than it solves.
Kinda up to you. Recruit your friends to join if you want a say. :^)
> Individuals contributing at least $1,000/year to the endowment fund qualify as OSE Members. Members advise the OSE board on strategic matters, such as the grant-making model, and appoint community-nominated board directors. These rights are legally defined in our membership policy.
https://github.com/osendowment/foundation?tab=readme-ov-file...
$1000 to join the discussion table, wow, that's an extremely high bar. What is the motivation of such an excluding entry barrier?
It is a community-driven initiative - we encourage developers to join as donors and help to shape it. Also, our model from the very start is about deep layers of infrastructure: https://endowment.dev/endowment/#model.
Finally, I would not say that, let's say, founders of Nginx and curl are not interested in critical infra or don't understand it :)
If someone has money, why would they be better off joining this as a donor instead of just giving that money directly to someone who's actually doing good and necessary work? Everything about this seems like it will be a waste of whatever resources go into it. Like that one time Mozilla decided to help, through one of its grants, to secure $400,000 in funding for... the Webpack project.
> I would not say that, let's say, founders of Nginx and curl are not interested in critical infra or don't understand it
Congratulations, you managed to pick out the two projects in the set that makes it merely "mostly" (instead of "entirely") frivolous.