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Comment by EarlKing

1 day ago

Well, speaking in the case of the US, this would constitute product development which is well outside the scope of what a 501(c)(3) organization should be doing, which could thereby jeopardize their tax status? Or, in the case of a state-run university, this raises all kinds of issues regarding how tax money is being given away to random schmoes instead of benefitting the public at large.

So, yeah, there's plenty of reasons why they don't do that.

Open source wouldn't have a funding problem if people would stop being so averse to just paying for what they use. Maybe... the world should stop expecting something for nothing.

Using the model of the university and various tenured profs, I'm not sure what you are saying is true. But, perhaps it's a misunderstanding of what I was intending.

I see this more as a way to answer the question of things like the maintainers of OpenSSL or sudo. One approach is to fund the "project" and let it deal with all of these questions. Another approach would be to fund the people themselves. So, have a faculty of expert software maintainers, vetted by the governance structure of the OSE. Within that faculty, you could have "adjuncts" and "residents" who have a time-bound grant and set of obligations. If they are successful and their work continues to be relevant, they could eventually apply for one of a defined set of "tenured" positions. Those positions would guarantee them independence and a stable source of income in order to continue their role as a maintainer.

The goal of this "faculty" would be sustainable OSS maintenance (which involves both leadership and contribution), rather than publishing research and teaching classes. So, similar overall structure and approach, but differing goals.

> Well, speaking in the case of the US, this would constitute product development which is well outside the scope of what a 501(c)(3) organization should be doing, which could thereby jeopardize their tax status?

Doesn't this apply only to for-profit products? There's plenty of 501c3's with free "products".

  • It is not about whether or not it is available for free, at cost, or otherwise, but whether or not the activity has the character of commercial product development. It's what the product is used for, not what price it's set at. A 501(c)(3) directly developing, or funding the development, of commercial software is not engaged in charitable, educational, or other exempt activities.

    For reference: This is exactly what happened to the Yorba Foundation, and numerous others since then.[1]

    [1] https://www.stradley.com/business-vantage-point-blog/irs-con...

    • There's clearly a change going on in the US government, and it very well may be that organizations such as Mozilla, FreeBSD, and Apache could all lose their 501(c)(3) tax exempt status in years to come.

      At the end of the day though, 501(c)(3) status is a purely US concept, doesn't apply to international organizations internationally, and doesn't necessarily mean that you "can't" do what anyone is discussing here. It just means that folks gonna have to pay taxes and "donations" can't be written off on the taxes of donors.

      Perhaps, at the end of the day, not pursuing tax-exemption/charity status is a more honest approach. It certainly doesn't precluding doing any of what has been discussed, it just changes the financial efficiency.

Which is why app stores and SaaS products thrive, they provide the mechanisms to actually pay for the software one uses.