Understanding Fiscal Sponsorship

Fiscal sponsorship is an arrangement that lets open-source projects get financial backing while preserving their separate identity. It creates a lawful and financial structure enabling projects to gather contributions, oversee resources, and maintain regulatory alignment.

TMF's Strategy for Fiscal Sponsorship

At The Modding Foundation, we deliver:

• Money Stewardship: We protect and oversee your project's money and provide systems to grow funding and record spending
• Payment Handling: we control business payment systems like PayPal and Stripe, and manage money distribution to your initiative.
• Money Documentation: We give detailed records of all money transactions, letting project managers understand their available funds clearly.
• Lawful and Tax Obligations: we create, examine and finalize contracts representing our participating project partners.
• Supervision and Governance: we verify money is allocated responsibly and within the project's direction.

This arrangement allows your team to dedicate effort to growing your project while TMF manages all money-related responsibilities. Under our fiscal sponsorship structure, your initiative keeps its freedom, although TMF retains control of money operations and regulatory responsibilities, guaranteeing resources advance your project's aims.

The Open Collective System

TMF leverages the Open Collective Service to administer our fiscal sponsorship work. This service provides a public and straightforward method for projects to get and handle money, plus gives capabilities for money records and regulatory adherence.