Reddit migrator here (shocking, I know)

Just wondering because I found out about all this yesterday and just realized the ammount of independent servers, but no sign of any ads or sponsors. So… is it all based on donations?

Also don’t just lurk, if you know you should answer because lemmy only counts users who posted or commented as active users.

  • @grueEnglish
    2•1 year ago

    Grant recipients don’t necessarily need to file as foundation. For example, college students receive grants.

    It’s very possible NLnet manages funds that pay recipients as 1099-equivilent contractors. At which point, all Lemmy has to do is document that their grant money is used to sustain the mission to the Foundation.

    Right, in other words, they receive it as business income for their sole proprietorship (or general partnership, or incorporated business entity), not as wages as an employee of the entity that awarded the grant. Point is, whatever the entity is, it would be separate from NLnet and therefore not necessarily a non-profit just because NLnet is.

    Also, if the Lemmy devs are still acting as an unincorporated sole proprietorship or general partnership (with all the donations and such being treated as personal income and with no separation between business assets and personal assets), then the fact that the project is hockey-sticking right now means it’s probably about time to get serious and incorporate, both to protect themselves legally by separating their personal and business finances, and so that they can apply to be an official non-profit entity and make donations tax-deductible.