The Open Molecular Software Foundation uses fiscal sponsorship as a business model available to nonprofit organizations to assemble the resources, provide support and advance open source projects in molecular sciences aligned with our charitable purpose and general public interest.
What is fiscal sponsorship? Simply put, fiscal sponsorship allows extension of our tax-exempt status to sponsored projects, provided that these projects further our mission. The sponsor organization (OMSF) accepts tax deductible contributions and grants on behalf of the sponsored project. OMSF works to ensure that all funds are used in line with its charitable purposes and any additional funder restrictions. The relationship between the sponsored projects and OMSF will be defined in a written agreement, specifying obligations and responsibilities for both parties. If you would like to know more about fiscal sponsorship, we recommend the book Fiscal Sponsorship: 6 Ways To Do It Right by Gregory Colvin and Stephanie Petit.
As the book title suggests, there are six models of fiscal sponsorship with varying levels of financial independence for sponsored projects with respect to the sponsoring organization. We are planning to develop support and capabilities to support several models over time. Please reach out to firstname.lastname@example.org if you think OMSF could assist your project and your organization as a fiscal sponsor.
The OMSF will initially focus on the Model A , also known as Direct Project or Comprehensive Model. In this model, the project becomes a program of the fiscal sponsor and the sponsor (OMSF) takes comprehensive responsibility for the project. The fiscal sponsor assumes liability for all project assets and activities, including its employees, contractors and volunteers. This is one of the least financially independent models, as the sponsor has ultimate control, but projects may have a substantial level of autonomy. Projects following this model within OMSF are called Hosted Projects.
We offer the following services to Hosted Projects:
Full back-office support:
- Transparent accounting
- Contracts management
- Accounts payable and receivable
- Support for international hiring
- Independent contractors
- Employee benefits and payroll
- Revenue modelling
- Fundraising support,
- Assistance with project governance
- Exploring funding options and business models to ensure the long term sustainability of Hosted Projects
- Help identify and grow strategic partnerships and relationships with stakeholders relevant to Hosted Project’s success
- Fellowship disbursement
- Assistance with organizing events and branding
- Access to legal counsel with leading experts in open source software
- Coordination between projects and stakeholders with common interests to find mutually beneficial solutions
- Assistance with growing healthy communities around Hosted Projects.