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
