Forum OpenACS Q&A: Re: Setting up an OpenACS Foundation

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Posted by Torben Brosten on

Jeff, I have nothing against a foundation as you describe it.

"there is no intent for the foundation to subsume the OpenACS project or alter it's governance. It's intended to be a tool to facilitate certain aspects of the project that are difficult to manage absent a corporatate sponsor."

There should be some disclosure (and thus clarity) about the foundations' operational limits. Some of the dotLRN activities discussed elsewhere on this site could subject the foundation to UBIT if a sponsor's benefits from a trade or agreement are valued greater than its contribution (very possible). There might be a need to prohibit commercial entities from participating with nonprofits on development ventures. You can skim some of the related discussion in the federal reg.[1] search terms: internet, web site, hyperlink

Patrick, I cannot cite where UBIT was imposed on an open-source project. My experience with tax-exempt nonprofits operating in areas of building construction and community development (and IRS) suggests that these UBIT concerns are real. A historical lack of an imposed UBIT does not mean open-source development projects are not exempt from UBIT issues --it may just mean that the code has not yet caught up with it.

1. http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2002_register&docid=02-9930-filed

Has creating a cooperative been considered? How transparent will the foundation be? How will accountability be managed? Has there been any legal consultation?