I hate when we are close to an agreement and someone comes with a totally different idea, and today it’s me, sorry.
Yesterday, someone pointed me out an interesting platform: OpenCollective. The How it works page describes it perfectly. You send your bill online, and the community pays for it. You basically opens your finances to the community. You can also requests money to get some fundings. There are 2 kinds of tiers: Backers and Sponsors, which fits to our current situation. It generates invoices, all data can be downloaded as a CSV file etc etc.
OpenCollective takes some fees though. If you look at the webpack page, you can see that Facebook gives 1000 USD monthly:
Monthly donation to webpack
Donation made by Facebook Open Source on Oct 26, 2017
amount $1,000 - $50 (host fee) - $50 (Open Collective fee) - $29.3 (payment processor fee) = $870.7
In this example, OpenCollective takes 50 + 50 + 29.3 = 129.3 USD.
From the FAQ:
How much does it cost?
Open Collective takes 10% of the money raised by the collective for managing bookkeeping, taxes, and admin (fiscal sponsorship), as well as providing your Open Collective page and the software it runs on. We share this commission with the fiscal sponsor (legal owner of the bank account that holds the money on behalf of the collective).
Additionally, our payment processors charge a fee - Stripe for receiving money via a Credit Card and PayPal for paying out expenses. Usually 2.9% + $0.30 per transaction. We are exploring adding other means of payment to reduce those fees, including ACH transfers and Bitcoin.
How is it different from other crowdfunding platforms?
Two major differences:
- While most crowdfunding is about one-off projects, Open Collective helps you raise money recurringly (e.g. monthly) to finance the ongoing activities of your community. That way, you can plan your activities against an anticipated monthly budget.
- Open Collective operates with full financial transparency and accountability. Other platforms hand over the money without showing the backers, who provided the funds, how it’s used. On Open Collective, you submit expenses for everyone to see. We believe transparency leads to healthier organizations and communities.
I don’t see this OpenCollective as a competitor to BountySource (where we have an account, A way of support and issue following) but maybe I mistaken.
Do you think it is interesting?