What is Open Collective?
Open Collective is an app we use to track project balances, crowdfund, communicate with donors, manage budgets, and pay expenses. The platform itself does not touch our funds - it is only a ledger1 - but its superpower is it integrates2 with our payment processors: Stripe for credit card donations and Wise for expense payments.
By putting all these features in one place, Open Collective makes things easier on our internal team, and speeds up payments to your vendors and contractors.
Open Collective is also aligned with Raft in that it envisions a better future, and brings some of that vision into the present day. In many ways, Open Collective’s platform facilitates a new social coordination pattern, or at least contributes to the beginnings of one. (And thus, sometimes it takes some getting used to.)
Ways we use Open Collective at Raft Foundation
- To receive credit card donations
- To track cash balances for all projects
- To track and re-assign the administrative cost allocation (a.k.a. fiscal sponsorship fee)
- To re-assign cash from one balance to another
- To pay expenses (invoices and reimbursements)
Open Collective vs. accounting software
Open Collective is not an accounting software. It is fairly unique, in its role, and in its transparency, but is probably best described as a crowdfunding, expense processing, financial coordination, and cash management platform.
The financial Information in Open Collective flows into our accounting platform3, where we prepare financial reports and government filings.
Accounting platforms differ in that they track financial activity on an accrual basis, a more complex method of financial management where funds are accounted for when they are incurred (e.g., when a contract is signed), rather than upon physical receipt of the funds.
Changing fiscal hosts on Open Collective
In the case that a project is moving to Raft from another fiscal host that uses Open Collective, they should follow the instructions on Transferring to Raft from another fiscal host.
Raft’s relationship with Open Collective
A member of Raft’s leadership used to be on the leadership team of Open Collective. The present relationship with Open Collective, however, is solely through Raft. Read more at Raft’s relationship with Open Collective.
Need help?
Both Raft and Open Collective are available. See Where to go for help for more information.
Footnotes
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A ledger is a digital record used for maintaining a list of financial transactions. ↩
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To integrate is to form, coordinate, or blend into a functioning or unified whole. In this case, we are referring to two apps connecting to one another so that one app can be controlled from within the other. ↩
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Intuit Quickbooks. We wish there was an open-source alternative that met our needs! ↩