#Mastodon forms new 501(c)(3) non-profit entity with new board of directors in the United States to facilitate tax-deductible donations and in-kind support:

https://blog.joinmastodon.org/2024/04/mastodon-forms-new-u.s.-non-profit/

Mastodon forms new U.S. non-profit

As part of our commitment to supporting the growth and operational capabilities of Mastodon, we have established a 501(c)(3) non-profit entity in the United States aimed at facilitating our efforts, including being able to receive tax-deductible U.S. donations.

Mastodon Blog
@Mastodon is the picture by the link an official board member portrait
@venite @Mastodon I assume so and would be disappointed otherwise u.u
@Mastodon Does this have any effect regarding access of US authorities to the data stored in mastodon.social?
@sirikon @Mastodon no, mastodon.social is hosted by our german entity, which does not have ties to the US non-profit
@Mastodon Why not have a user-elected board of directors? A real missed opportunity to bring democratic values to Mastodon.
@chema @Mastodon sometimes it's important to have someone qualified, not just popular
@relsqui @Mastodon That's the excuse for every self-selecting board of directors, who often end up avoiding any tension, however necessary.

Meanwhile, we've got plenty of organizations with governance structures that give meaningful say to stakeholders like ICANN or the Sierra Club that serve as counter-examples.
@chema @Mastodon never underestimate the power of stupid people in large numbers.
I guess, but don't underestimate the power of a handful of self-selecting people with no oversight or accountability either.
@chema @Mastodon their competence does't go beyond managing finances
@chema @Mastodon I think this is a very reasonable point, and I hope the org moves in this direction.

@ntnsndr @chema @Mastodon

Good to see that Mastodon has a 501(c)(3)! Also,, even if not all the board is elected, there's a lot of value in what Wikimedia and Global Voices do, with at least some board seats open to election from staff and the community.

With regular elections, the board gets to see and hear from the evolving set of hopes, concerns, and constituencies that are of interest to the community every time an election arises.

Well said. Representative boards can also better support executive leadership in moving the org towards its mission. They provide guardrails against distractions outside of the scope of strategic plans.
@chema @Mastodon or even better imho, board seats selected by sortition of willing users, like jury duty (or Athenian democracy fwiw)
@chema @Mastodon this is a mainly technical context, not a political one. Open democracy for mantaining a software project doesn't make any sense

@Mastodon

Sad to hear if this pushes you to be more US-centric. Have loved that you've based from Germany, not just for people, but for législation as well.

@iju @Mastodon we are still EU-centric, the goal for the US structure is to be able to gather more funding in the US, the german structure remains our operating entity

@renchap @Mastodon

I'm just hoping this doesn't end up being the first step of many. But time will tell, I suppose. Would hope the German regulators could be reasoned with, but of course simply the fact that this happened must eat some confidence on future.

@iju @Mastodon I do not think we plan to move operations to the US, even if we do not get the non profit status back in Germany. As explained il the blog post. We never used the status to get tax-free donations, so there it is not really mandatory for us.

@renchap @Mastodon

Just worried that the US-non profit might get pressure from donators from US-legistlation, or that the board of directors start to influence the direction of the development.

@iju @Mastodon I understand this, but the setup is (as far as I know) done in a way that prevents this.

@iju @renchap @Mastodon Bingo!

That's also one of my concerns and I hope it's not a prelude to the entire operation to move to the US as it would be a very bad thing in the long run.

@renchap How will you deal with the taxes? if the employee are not in US or the donations are transferred to Germany the US taxes might take around 40%. @iju @Mastodon

@renchap @iju @Mastodon I got you. But it's a shame the EU has not a legal framework to support clearly nonprofit initiatives from the EU and it's necessary to rely on an American legal framework.

This just came to my mind about the recent announcement of the @EU_Commission saying their experience on #Mastodon was a success, but they cannot find anyone to host a server for their accounts!

Maybe it's time for them to seek some American role models to have a server.

#US #EU

@everton137 We do not really know what is happening with the non-profit status and are waiting for an answer or to know who to talk to.

The US structure is there to be able to raise money in the US more easily, as donors often requires you to have a specific status there.

@renchap I can imagine. I bet someone is just waiting for your fax before they can clarify something.

Sorry for the irony on the German bureaucracy, but this type of situation makes me mad. I've founded an NGO in Brazil and this raised some feelings on healing with bureaucrats.

I really wish this situation can be solved and you folks be considered a nonprofit.

@renchap @iju @Mastodon @[email protected]

And after years living in #Germany and dealing with its bureaucracy, it's plainly understandable this obscure move by German authorities to revoke your nonprofit status.

I wouldn't be surprised if there are some German bureaucrats with a schadenfreude at this moment.

#bureaucracy #EU

@everton137 A internet melhorou a burocra brasileira. É tão ruim quanto antes, porém menos demorada para lidar.

Piorou a burocra americana. O que era simples virou complicado e cheio de exigências adicionais.

Pelo que você conta a internet não chegou na Alemanha;-))

@renchap @iju @Mastodon “Software would not be recognized as a charitable cause by the German tax system, so we were glad when the tax office originally approved our non-profit status in 2021. But now we have received a notice from the same tax office that our non-profit status has been withdrawn. This came with no advance warning or explanation. “ was ist denn da los?
@Mastodon First impression because of the picture was that you made the plushie Mastodon the boss of the new org. I guess many would approve ;)
@Mastodon Would you consider renaming it to Tooter? 😁 And a post would be called a toot.
@Mastodon Astounding impact for so small a development team. Bravo!
@Mastodon being financially Americanized, beginning of the end for mastodon, hopefully not fediverse.
@Bythus @Mastodon Many European NGOs have an associated US nonprofit. For example I give to MSF/Doctors Without Borders that way. It is a way for US citizens to contribute money, but does not give US authorities any operating control.
@not2b @Mastodon it makes it easier for you to send money but also open the gate for other influences including those have a track record to destroy civil society for profit globally, just look at its board.
MF Dume (@[email protected])

Did someone say new tech nonprofit? Let's dig in! https://blog.joinmastodon.org/2024/04/mastodon-forms-new-u.s.-non-profit/

kolektiva.social
@Mastodon I’ll add it to my list of non profits I donate to
@Mastodon Please provide information on how to contribute, I couldn't find any in the article.
@Mastodon Anything on new board members? I understand there are two devs, but do you have any new board members?
@chriswho @Mastodon A former Twitter co-founder and a blockchain-turned-AI lawyer …
@Mastodon "Twitter, one of the world’s leading social media platforms" seemed untinged with irony.

@underlap @Mastodon

yes, realized that too… at least, I would add a “former” in my bio …

@Mastodon >Biz Stone
>Amir Ghavi
This can’t be real.

@Mastodon mark my words, which I would use with a quote:

IT'S A TRAP!

@Mastodon

To everyone concerned about the new USA non-profit status for Mastodon:

Read about 501(c)3 before making further judgment. It is simply a tax status for non-profits where *financial information must be reported* to the IRS. If the idea was to make money, 501(c)3 would be a terrible way to go given the financial restrictions.

And, for what it's worth, Doctor's Without Borders and World Central Kitchen are *both* US 501(c)3 tax exempt non-profits.

https://en.m.wikipedia.org/wiki/501(c)(3)_organization

501(c)(3) organization - Wikipedia

@Mastodon

Interesting that the German tax authorities changed their mind regarding non-profit status.

Read the blog post, it is not long.

@Mastodon congratulations on the announcement! You've put together an incredible board, wishing you much success!
@Mastodon is that a picture of the ceo
@Mastodon
it a great proggram.
Amen.
@Mastodon oh swell, I remember messaging Biz on Twitter asking when they were gonna get rid of the Nazis like promised…