Open Collective does not charge any upfront fees, we only collect a fee when a contribution is made to your Collective.
I have created this topic to clarify how we sustain our platform.
In general, there are two ways to work with Open Collective:
1.- If you don’t have a legal entity nor bank account:
You will require a “fiscal sponsor”, also called “Host Organization”. Depending on the country you are in, you can be hosted by Open Collective or another organization.
The fiscal sponsor fee is for managing bookkeeping, taxes, and admin. Most fiscal sponsors charge a 5% fee, that percentage can vary depending on the host organization thats available for you.
The fees look like this for collectives that requiere a fiscal sponsor:
5% OC platform fee + 2-3% Credit Card transaction fee + X% Fiscal Sponsor fee
So it’s usually 10% + fees associated with Credit Card processing.
2.- When you are already a legal entity/organization and have a bank account:
You will need to create a Stripe account and connect it to Open Collective to get your funds directly into your bank account.
In this case, the fees would look like this:
5% OC platform fee + 2-3% Credit Card transaction fee
I hope this topic is clear enough to understand how we sustain our platform.