How to become a host?


#1

Becoming an open collective host

What is a host?

The host is the organization or individual that acts as the Collective’s fiscal sponsor, receives funds in the name of the Collective and reimburses the Collective’s members. All the money collected by those collectives goes into the bank account of the host organization on behalf of those collectives. Whenever a member of a collective has an expense, they submit it and once approved, that person gets reimbursed on their paypal account automatically (the OpenCollective platform keeps tracks of all of that automatically).

The host can choose to receive a % from the contributions to the collectives it hosts for the service provided. Hosts on Open Collective charge anything from 0 to 30% depending on what services (branding, fiscal sponsorship, workshops, support, etc they provide).

Why becoming a host?

By becoming a host, you are enabling groups and communities to collect and disburse money in full transparency without having to create a legal entity and a new bank account. They have their own independent budget that allows them to pursue their activities. It’s a great way to build a decentralized organization or movement with independent teams.

Hosts can be:

HQ organizations that have multiple local chapters in different cities/countries and therefore host only their network
Organizations interested in growing their ecosystem, so they host collectives in the same area/vertical/topic.
Organizations with a charitable mission host collectives with charitable purposes that align with that mission.
Organizations that host collectives in a certain city or country.
Bitcoin/Ether wallets. They convert donations into cryptocurrency and store it in a collective’s wallet.

Things to consider when becoming a host:

Have you looked into the tax implications in your country/city about being a fiscal sponsor?
Have you thought about a system to incorporate new collectives to your organization?
You’ll need a Stripe and PayPal account, do they work in your country? (this might change in the future)
Use a common email address (ops@ finance@ info@) for your host user, so you can have more than one person able to log in. Remember, only the host can pay for an invoice or reimburse an expense!

What are the legal liabilities?

As a host, you are responsible to make sure that the collectives that you are hosting are not doing money laundering or other nefarious activities. So you don’t want to open the door to anyone to create a collective. To prevent issues, you have to approve the creation of a collective on your host and you will also get to review/approve all expenses (the interface makes it fast and easy).

Requirements

To be host, you need to have a legal entity (a non profit is ideal) and a bank account. You could also do it as an individual with your bank account, but we strongly suggest check the tax/legal implications of doing so. You will also need to create a PayPal and a Stripe account connected to that bank account.

Once you have that, email us hello@opencollective.com