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Gentoo Linux becomes an SPI Associated Project

The Gentoo Linux project has announced that it is now an Associated Project of Software in the Public Interest (SPI), which will allow it to accept tax deductible donations in the US and reduce its "non-technical workload":

The current Gentoo Foundation has bylaws restricting its behavior to that of a non-profit, is a recognized non-profit only in New Mexico, but a for-profit entity at the US federal level. A direct conversion to a federally recognized non-profit would be unlikely to succeed without significant effort and cost.

[...] SPI is already now recognized at US federal level as a full-[fledged] non-profit 501(c)(3). It also handles several projects of similar type and size (e.g., Arch and Debian) and as such has exactly the experience and background that Gentoo needs.

According to the announcement, the goal is to "eventually transfer the existing assets to SPI and dissolve the Gentoo Foundation". How to do that is still under discussion. This will not affect Förderverein Gentoo e.V., which has public-benefit status in Germany and can accept tax deductible donations in Europe.



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Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 1:02 UTC (Thu) by NightMonkey (subscriber, #23051) [Link] (2 responses)

Hmm... does the SPI know how much time they'll waste watching Gentoo's tax filings emerge? ;)

Sincerely,
Happy Gentoo user since 2005

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 10:38 UTC (Thu) by Heretic_Blacksheep (guest, #169992) [Link]

This took way too long to emerge as a joke in my head. Well done! 😄

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 12:55 UTC (Thu) by sdenlinger (subscriber, #24239) [Link]

COTD. Take your +1 / star / upvote!

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 6:22 UTC (Thu) by geuder (subscriber, #62854) [Link] (7 responses)

Tax deductable in Europe? I doubt such thing even exists. Even if we'd read Europe as EU, tax laws are national laws and every country does their own. So I would guess this means tax deductable in Germany.

Here in this EU country there is no tax deduction possibility for any kind of welfare, the public good or similar. Even in those countries where it exists I'd guess the national tax office needs to approve the organization first, seems difficult to impossible if the organization is in a different country.

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 7:45 UTC (Thu) by sweimann (subscriber, #762) [Link] (3 responses)

You are right, there is no EU wide status for this, but being recognized as charitable/public utility in one country might help you get a tax deduction in your own one if such a thing exists in its tax laws.

And yes, becoming an e.V. ("eingetragener Verein", meaning registered association) in Germany means that the public utility of your association had to be checked by the authorities and this can be revoked again if you start to act commercially (which leads too some strange constructs where an e.V. owns a commercial company...).

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 9:16 UTC (Thu) by Wol (subscriber, #4433) [Link]

> And yes, becoming an e.V. ("eingetragener Verein", meaning registered association) in Germany means that the public utility of your association had to be checked by the authorities and this can be revoked again if you start to act commercially (which leads too some strange constructs where an e.V. owns a commercial company...).

And there's no reason for this to be a problem. We had a situation like that in the UK that I'm moderately familiar with - Burroughs Wellcome and the Wellcome Foundation.

Don't know the back history, but basically someone set up the Wellcome Foundation as a medical research charity, and left Wellcome Ltd (or whatever they were called) to the charity. (Wellcome then merged with Burroughs but that's by the bye.)

So we have a charity, and commercial business, working at arms length but the primary connection between the two is that the company funded the charity's activities. The Wellcome Foundation still exists, but iirc Burroughs Wellcome has now been absorbed into Glaxo Smithkline.

Cheers,
Wol

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 9:47 UTC (Thu) by benzea (subscriber, #96937) [Link] (1 responses)

Note that being an e.V. does not automatically mean it is charitable for tax purposes. That is a separate step.

IIRC, a charitable e.V. has three categories of turnover:
* charitable
* Zweckbetrieb (for-profit, but consistent with its purpose and not in competition with others)
* for-profit

I believe what sweimann is referring to is that splitting the for-profit parts into a company avoids running afoul of rules about how big the for-profit part may become in relation to the others. I assume that there are also other factors like different rules about liability that can be important when making such a decision.

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 10:48 UTC (Thu) by atnot (subscriber, #124910) [Link]

> I assume that there are also other factors like different rules about liability that can be important when making such a decision.

Yes, one such factor is attackability. The relatively strict conditions of being strictly charitable make it very easy to draw organizations you don't like into an extended, expensive legal battle by questioning their charitable status. The result of which might be not just losing your charitable status, but the dissolution of the organization entirely. Hence a lot of charities doing the sort of charity work that makes you enemies chose to deliberately forego charitable status even if they would easily qualify for it.

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 10:17 UTC (Thu) by kleptog (subscriber, #1183) [Link]

> Tax deductable in Europe? I doubt such thing even exists

Not for lack of trying by the Commission though. From their point of view allowing some people in the EU to claim donations to the same organisation as tax deductible while others not is inappropriate discrimination forbidden by treaty. This was a decade long dispute between the Dutch government and the EU Commission.

The current situation is a sort of stalemate: Dutch tax payers can claim tax deductions for donations to organisations with ANBI status, and that status has been opened to organisations elsewhere in the EU. So, if your organisation wants to attract more donations from the Netherlands, you can apply for an ANBI status. A few open-source organisations have done this, FSF Europe e.V. for example.

So I guess the current situation is that organisations wanting to allow tax deducatble donations in the whole of Europe have to get themselves registered as a charity in every country. Which is messy. I beleive some organisations have reciprocal agreements to help here but it's quite non-transparent. It would be great if some kind of "EU charity status" could be created, but given the lack of movement on this in the last few decades, I'm not keeping my hopes up.

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 10:25 UTC (Thu) by NAR (subscriber, #1313) [Link] (1 responses)

Not quite tax-deductible, but in Hungary it's possible to "pledge" 1% of personal tax to certain non-profit(?) foundations. I think it takes a couple of years to earn this status, then on the tax form it's possible to specify the tax number of said organisation to receive 1% of the tax. Usually every year there's a campaign by charities (foundations working on cancer treatment, child care, dog shelters, etc.) to raise awareness of this issue and to get as much 1% as possible. Churches can get an other 1% - so registering the Church of Linux is an other option :-)

GNU/Linux

Posted Apr 11, 2024 13:21 UTC (Thu) by gmatht (guest, #58961) [Link]

I believe that to qualify as a religion, you would have to refer to it as GNU/Linux.

Gentoo Linux becomes an SPI Associated Project

Posted Apr 11, 2024 21:08 UTC (Thu) by cypherpunks2 (guest, #152408) [Link]

In the formal invitation, the link to the meeting minutes (https://www.spi-inc.org/meetings/minutes/2024/2023-03-11/) is 404. I think it must be a typo, because replacing the "2023" with "2024" gives a correct link to the minutes: https://www.spi-inc.org/meetings/minutes/2024/2024-03-11/

The IRC log of the meeting minutes: https://www.spi-inc.org/meetings/logs/2024/2024-03-11.txt

Gentoo Linux becomes an SPI Associated Project

Posted Apr 12, 2024 11:24 UTC (Fri) by ganneff (subscriber, #7069) [Link]

Funny side note: Debian is doing more and more away from SPI, because it is just easier and better. And it got really annoying to deal with SPI stuff. (Still with non-profits and all that, but not SPI).


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