1. Should you start a new non-profit?
Foundations 101
Should you start a new non-profit?
Moderator: Dave Neary

2. Panel discussion Dave Neary COSM, Yorba, GNOME Foundation Ian Skerrett
Eclipse Foundation
Bradley Kuhn
Software Freedom Conservancy
Cedric Thomas
OW2
Key points of dispute:
- Corporate vs community influence
- Apache Foundation/FSF - Giving up control?
- Eclipse Foundation – too much paperwork?
- Quality of service – how can you compare umbrella organizations?
- Is there ever a good reason to start a new foundation?

3. Answer: It depends.

4. Reasons for starting 1. Financial infrastructure
Opening a bank account
Accepting donations (potentially tax-deductible)

5. Reasons for starting 2. Insulate members from liability
Enter into contracts (eg. conference venues, sponsors)
Hire staff

6. Reasons for starting 3. Governance and pooling resources
Legal safe haven for copyrights and trademark
Formalize rules for governance of project
Protect members from individual legal action
Provide level playing field for members, structure to pool resources

7. Costs
1. Money
Lawyer for drafting of by-laws and annual registration of company paperwork
Accountant to deal with taxes, payroll

8. Costs
2. Time
Registering an organization, drafting by-laws, official paperwork
Elections, board meetings, ...
501(c)* approval times measured in years

9. Costs 3. Risk & responsibility
President and board are accountable for the organization fiscally & legally
Fiduciary responsibility, potentially outside your jurisdiction

10. Alternatives 1. Umbrella organizations (in no particular order)
Eclipse Foundation
Software Freedom Conservancy
Software in the Public Interest
OuterCurve Foundation
OW2
Linux Foundation

11. Alternatives 1. Umbrella organizations (in no particular order)
Apache Foundation
GNOME Foundation
KDE eV
...

12. Alternatives 1. Umbrella organizations (in no particular order)
Provide fiscal entity and financial services
Key differences:
Cost structure
Membership requirements (license, infrastructure, ...)
Philosophy and by-laws
Ecosystem

13. Alternatives 2. Sugar Daddy
“Benevolent” corporate sponsor
Benefits: Salary, availability of legal and financial services
Risks: Changing winds

14. Alternatives 3. Management services
Offload financial and administrative services to organization
Provide staff & payroll services, etc.
Costs money
See panel “How should we staff & administer it?”

15. Starting a foundation Considerations out of scope for this discussion:
Jurisdiction
By-laws and corporate governance
IRS 501(c) status
See panel “How do we form a new Foundation?” - up next

16. Panel discussion Dave Neary COSM, Yorba, GNOME Foundation Ian Skerrett
Eclipse Foundation
Bradley Kuhn
Software Freedom Conservancy
Cedric Thomas
OW2
Key points of dispute:
- Corporate vs community influence
- Apache Foundation/FSF - Giving up control?
- Eclipse Foundation – too much paperwork?
- Quality of service – how can you compare umbrella organizations?
- Is there ever a good reason to start a new foundation?