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Overview

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The Software Freedom Conservancy is an organization composed of Free, -Libre and Open Source Software (FLOSS) projects (called Conservancy's -“member projects”). Conservancy is a fiscal sponsor for these -member projects, thus the Conservancy's member projects benefit from -financial, administrative services and non-profit oversight. By joining -the Conservancy, member projects can obtain the benefits of a formal legal -structure while keeping themselves focused on software development.

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What are the benefits of joining the Conservancy?

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One of the principal benefits of joining the Conservancy is that member -projects get all the protections of being a corporate entity without -actually having to form and maintain one. These benefits include, most -notably, the ability to collect earmarked project donations and protection -from personal liability for the developers of the project. Projects can -continue to operate in the same way they did before joining the -Conservancy without having to select a board of directors or any other -layer of corporate management, without having to maintain corporate -records and without having to do any of the other things required of -incorporated entities. The Conservancy handles all of that burden on -behalf of its projects.

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The Conservancy is a tax-exempt 501(c)(3) organization, so member -projects can receive tax-deductible donations to the extent permitted -by law. The Conservancy files a single tax return that covers all of -its member projects and handles other corporate and tax related issues -on behalf of its members, who are, of course, always free to join and -leave the Conservancy at any time. Additionally, by not having to -form a new organization, projects avoid having to pay the fees and -spend the time required by the state incorporation and federal tax -exemption application processes.

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Another benefit of joining the Conservancy is that projects can use -it to hold assets, which are managed by the Conservancy on behalf of -and at the direction of the project. For example, any monies received -by a project are put in a separate Conservancy fund and maintained -there until the project directs the Conservancy to do something with -the funds. This prevents developers from having to commingle project -funds with their own accounts or having to set up their own project -specific account. Since the Conservancy is a tax-exempt organization, -there are some limits that the law places on what member projects can -do with their assets, but those limits are the same as if the project -was an independent non-profit entity.

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All of these benefits are currently provided for free. The Conservancy -does not currently charge its member projects any fees. The Conservancy -of course welcomes and appreciates voluntary contributions from member -projects to help cover the cost of providing these services.

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How does a project join the Conservancy?

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In order to join, projects need to meet certain criteria, including the -requirement that the project be exclusively devoted to the development of -Free and Open Source Software and that it be consistent with the -Conservancy's tax-exempt purposes and the financial requirements imposed -by the IRS. Most FLOSS projects will meet these requirements. To find out -if your project can join the Conservancy, or to get more information, -contact us, preferably by email. Qualifying -projects that wish to join the Conservancy will form an agreement with the -Conservancy that sets out all of their rights and responsibilities.

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While any project licensed under a widely recognized FOSS license can - apply, the Conservancy seeks in particular projects that are - well-established and have some track record of substantial contributions - from a community of volunteer developers. The Conservancy does gives - higher priority to projects that have an established userbase and - interest, but also tries to accept some smaller projects with strong - potential.

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If my project joins the Conservancy, how will it change?

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Substantively, member projects continue to operate in the same way as they -did before joining the Conservancy. So long as the project remains -devoted to Free and Open Source Software and operates consistently with -the Conservancy's tax-exempt status, the Conservancy does not intervene in -the project's development other than to provide administrative assistance. -For example, the Conservancy keeps and maintains books and records for the -project and assists with the logistics of receiving donations, but does -not involve itself with technical or artistic decision making. Projects -are asked, however, to keep the Conservancy up to date on their -activities.

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Once a project joins, who owns its assets (money, copyrights, trademarks, -etc.)?

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The Conservancy holds assets on behalf of its member projects and -manages and disburses those assets in accordance with the project's -wishes. Monies received by the Conservancy on behalf of a project are -kept track of separately for each specific project and the management of -those funds is directed by the project. For example, if a donor wanted to -contribute $100 to Project X, they would formally make the donation to the -Conservancy and identify Project X as the desired project to support. The -Conservancy would then deposit the check and earmark the funds for use by -Project X. Project X would then tell the Conservancy how that money -should be spent.

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Similarly, any copyrights, trademarks or other assets transferred to a -project can also be held by the Conservancy on behalf of the project. A -significant service that the Conservancy provides its members is a vehicle -through which copyright ownership in the project can be unified. There -are several advantages to having a consolidated copyright structure, -including that it makes enforcement activity easier and more effective. -However, although it is almost always beneficial for projects to -consolidate their copyrights, such is not a requirement in order to join -the Conservancy.

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How can a project leave the Conservancy?

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As set out in an agreement between member projects and the Conservancy, -projects can leave the Conservancy at any time. Federal tax exemption -law, though, states that projects must transfer their assets from the -Conservancy in a way that is consistent with the Conservancy's -not-for-profit tax status — meaning the assets cannot be transferred -to an individual or a for-profit entity. Generally, a project would -either find another fiscal sponsor or form their own independent -tax-exempt non-profit.

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Who runs the Conservancy?

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Like many non-profits, The Conservancy is directed by a -self-perpetuating Board of Directors, who -appoint Officers to carry out the -day-to-day operations of the Conservancy. The Directorship of the -Conservancy is designed to include both talented non-profit managers and -seasoned FOSS project leaders who can both guide the administrative -operations of the organization as well as mentor member project leadership -as needed. Our Directors constantly search for additional directors who -can contribute a variety of expertise and perspective related to the -Conservancy's mission.

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Public Filings

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Like all USA non-profits, the Conservancy files an annual Form 990 and, as -a non-profit in the State of New York, files an annual CHAR-500 with New -York State. Below, Conservancy makes available these filings for public -inspection:

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