Opencollective shutting down
Update 28.02.2024 19:45 CET: There is now a blog entry at https://blog.opencollective.com/open-collective-official-statement-ocf-dissolution/ trying to discern the legal entities in the Open Collective ecosystem and recommending potential ways forward.
Gee, there is nothing on their blog yet, but I just [28.02.2023 00:07 CET] received this email from Mike Strode, Program Officer at the Open Collective Foundation:
Dear Daniel Lange,
It is with a heavy heart that I'm writing today to inform you that the Board of Directors of the Open Collective Foundation (OCF) has made the difficult decision to dissolve OCF, effective December 31, 2024.
We are proud of the work we have been able to do together. We have been honored to build community with you and the hundreds of other collectives hosted at the Open Collective Foundation.
What you need to know:
We are beginning a staged dissolution process that will allow our over 600 collectives the time to close or transition their work. Dissolving OCF will take many months, and involves settling all liabilities while spending down all funds in a legally compliant manner.
Our priority is to support our collectives in navigating this change. We want to provide collectives the longest possible runway to wind down or transition their operations while we focus on the many legal and financial tasks associated with dissolving a nonprofit.
March 15 is the last day to accept donations. You will have until September 30 to work with us to develop and implement a plan to spend down the money in your fund. Key dates are included at the bottom of this email.
We know this is going to be difficult, and we will do everything we can to ease the transition for you.
How we will support collectives:
It remains our fiduciary responsibility to safeguard each collective's charitable assets and ensure funds are used solely for specified charitable purposes.
We will be providing assistance and support to you, whether you choose to spend out and close down your collective or continue your work through another 501(c)(3) organization or fiscal sponsor.
Unfortunately, we had to say goodbye to several of our colleagues today as we pare down our core staff to reduce costs. I will be staying on staff to support collectives through this transition, along with Wayne Kleppe, our Finance Administrator.
What led to this decision:
From day one, OCF was committed to experimentation and innovation. We were dedicated to finding new ways to open up the nonprofit space, making it easier for people to raise and access funding so they can do good in their communities.
OCF was created by Open Collective Inc. (OCI), a company formed in 2015 with the goal of "enabling groups to quickly set up a collective, raise funds and manage them transparently." Soon after being founded by OCI, OCF went through a period of rapid growth. We responded to increased demand arising from the COVID-19 pandemic without taking the time to establish the appropriate systems and infrastructure to sustain that growth.
Unfortunately, over the past year, we have learned that Open Collective Foundation's business model is not sustainable with the number of complex services we have offered and the fees we pay to the Open Collective Inc. tech platform.
In late 2023, we made the decision to pause accepting new collectives in order to create space for us to address the issues. Unfortunately, it became clear that it would not be financially feasible to make the necessary corrections, and we determined that OCF is not viable.
What's next:
We know this news will raise questions for many of our collectives. We will be making space for questions and reactions in the coming weeks.
In the meantime, we have developed this FAQ which we will keep updated as more questions come in.
What you need to do next:
- Review the FAQ
- Discuss your options within your collective. Your options are:
- spend down and close out your collective
- spend down and transfer your collective to another fiscal sponsor, or
- transfer your collective and funds to another charitable organization.
- Reply-all to this email with any questions, requests, or to set up a time to talk. Please make sure generalinquiries@opencollective.org is copied on your email.
Dates to know:
- Last day to accept funds/receive donations: March 15, 2024
- Last day collectives can have employees: June 30, 2024
- Last day to spend or transfer funds: September 30, 2024
In Care & Accompaniment,
Mike Strode
Program Officer
Open Collective Foundation
Our mailing address has changed! We are now located at 440 N. Barranca Avenue #3717, Covina, CA 91723, USA
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ychaouche on :
Did you receive any sponsorship for software you're maintaining/developing? What's your general opinion about OCF?
Daniel Lange on :
We have been using OCF for htop, see https://opencollective.com/htop
I thought they were a sane option when a fellow htop dev set up the account with them. I am somewhat flabbergasted they fold such a successful organization for fiscal reasons. These seem quite solvable to me. But may be that is not the full story.
John on :
So, I am new to the organization. Seemed like a good bet. I realize many people are struggling right now and I am not going to be anything important. But honestly, I am disappointed in how this is playing out.
Nicolas on :
There is now a blog post which may clarify things. The Open Collective website is not shutting down.
Daniel Lange on :
Thanks! I updated the blog post so people find that. The OCF people have also sent another email with a link to a form where "admins" of their customers can opt-in to get more communication on "transition options" (i.e. new IRS-approved 26 U.S.C. ยง 501(c) (3) organizations they call "fiscal sponsors"). This all seems rushed and badly coordinated (if at all).
Nicolas on :
"The full content of their announcement, which came as a surprise to us,"
Certainly looks like zero coordination...
ac on :
a project I cofounded is also fiscally sponsored by OCF and I'm extremely disappointed by the lack of communication by staff and the board. there's also little recourse for accountability at this point, but what a shame.