Organization & structure of open source software development initiatives: challenges & opportunities concerning corporate formation, nonprofit status, & governance for open source projects

Abstract

This report addresses a number of key considerations that those managing open source software de- velopment initiatives should take into account when thinking about structure, organization, and gov- ernance. The genesis of this project involved an investigation into anecdotal reports that companies and other institutions developing open source software were facing difficulties obtaining tax exempt nonprofit status under Section 501(c)(3) of Title 26 of the United States Code. Based on conversations with a number of constituents in the open source software development community, the authors have prepared this report to address specific questions about nonprofit status alongside questions about corporate formation and governance models more generally. Nothing in this report should be viewed as a substitute for specific legal advice on the narrow ques- tions facing particular organizations under particular sets of factual circumstances. But, the authors are hopeful the document provides a general overview of the complex issues that open source initia- tives face when balancing a need for structure and continuity with the innovative and experimental spirit at the heart of many open source development projects.