Pricing overview
Open Collective's pricing model is primarily based on transactional fees applied to financial contributions received by collectives. Unlike many SaaS platforms, there are no monthly subscription fees for creating or managing a collective on the platform. The core cost components include Open Collective's platform fees and third-party payment processing fees. The platform fee structure varies depending on whether a collective utilizes Open Collective's integrated fiscal hosting services or provides its own fiscal host.
For collectives that rely on Open Collective's network of fiscal hosts, a 5% platform fee is applied to all contributions received. This fee helps cover the operational costs of the Open Collective platform and the services provided by the fiscal host, such as legal entity sponsorship, financial transparency tools, and expense management. Conversely, collectives that operate with their own independent fiscal host (a legally registered entity that manages their finances) are not charged any Open Collective platform fees. This distinction allows established organizations with existing legal and financial infrastructures to use the platform's community management and fundraising tools without additional overhead from Open Collective itself.
Regardless of the fiscal hosting arrangement, all financial transactions are subject to standard payment processor fees. These fees are determined by the chosen payment gateway, such as Stripe or PayPal, and typically include a percentage of the transaction amount plus a fixed per-transaction charge. These external fees are separate from Open Collective's platform fees and are deducted by the payment processor before funds reach the collective's account. Understanding both the platform fees and the payment processor fees is crucial for collectives to accurately project their net income from contributions.
Plans and tiers
Open Collective does not offer traditional tiered plans (e.g., Basic, Pro, Enterprise) with varying feature sets or monthly costs. Instead, its single platform model provides all features to all collectives, with pricing determined by the fiscal hosting arrangement. The primary distinction in 'tiers' is based on the fiscal hosting choice:
- Collectives using Open Collective's Fiscal Host: These collectives benefit from the platform's integrated fiscal sponsorship network. The fiscal host acts as the legal and financial umbrella, handling compliance, banking, and expense payouts. A 5% platform fee is applied to all contributions received by these collectives. This fee is automatically deducted from contributions.
- Collectives with their Own Fiscal Host: These collectives bring their own legal entity to manage their funds. This is often suitable for established non-profits, foundations, or companies that already have the infrastructure to manage finances and legal compliance. For these collectives, Open Collective charges a 0% platform fee. They utilize Open Collective for its community engagement, fundraising, and transparency tools, while their existing fiscal host manages the financial backend.
The functionality available to both types of collectives is identical, focusing on features like transparent budgeting, expense submission and approval, contribution tracking, and communication tools. The choice between using Open Collective's fiscal host or providing one's own primarily impacts the fee structure and the administrative responsibilities for financial management.
Here is a comparison of the two operational models:
| Model | Open Collective Platform Fee | Payment Processor Fees | Fiscal Hosting Provided By | Key Benefit |
|---|---|---|---|---|
| Using Open Collective's Fiscal Host | 5% of contributions | Standard (e.g., Stripe, PayPal) | Open Collective's network | Simplified legal & financial management, quick setup |
| Using Own Fiscal Host | 0% | Standard (e.g., Stripe, PayPal) | Collective's own legal entity | No Open Collective platform fees, full control |
Free tier and limits
Open Collective offers a comprehensive free tier that allows users to create and manage a collective without any upfront costs or monthly fees. The platform states that it is "Free to create and manage a collective" on its Open Collective pricing page. This means that individuals or groups can establish an online presence for their project, invite contributors, track expenses, and utilize most of the platform's features without incurring charges from Open Collective itself, until financial transactions occur.
The free tier includes:
- Collective Creation: Setting up an unlimited number of collectives for various projects or communities.
- Profile Management: Customizing collective pages with descriptions, goals, and branding.
- Transparency Features: Access to tools for publicly displaying budgets, contributions, and expenses.
- Contributor Management: Tools for engaging with supporters, sending updates, and recognizing contributions.
- Expense Management: Ability to submit, approve, and track expenses incurred by the collective.
The "limits" of this free tier are not feature-based but rather transaction-based. The platform fees are only applied when money is contributed to a collective. Therefore, a collective that exists solely for organizational purposes or that raises funds through other means can use Open Collective completely free of charge. The only mandatory costs associated with financial activity are the payment processor fees, which are external to Open Collective's platform and are levied by services like Stripe for processing payments or PayPal's payment services when contributions are made.
Real-world cost examples
To illustrate the pricing model, consider a few scenarios for a hypothetical open-source project, "Project Nebula," which uses Open Collective to fund its development.
Scenario 1: Project Nebula uses Open Collective's fiscal host
Project Nebula is a new initiative without its own legal entity. It opts to use one of Open Collective's fiscal hosts to manage its finances.
- Contribution: A corporate sponsor donates $1,000 to Project Nebula.
- Open Collective Platform Fee: 5% of $1,000 = $50.
- Payment Processor Fee (e.g., Stripe): Assuming 2.9% + $0.30 per transaction, this would be (0.029 * $1,000) + $0.30 = $29 + $0.30 = $29.30. (Note: Actual rates may vary by region and payment method.)
- Total Fees: $50 (platform) + $29.30 (processor) = $79.30.
- Net Amount Received by Project Nebula: $1,000 - $79.30 = $920.70.
In this scenario, Project Nebula benefits from the fiscal host handling compliance and banking, and the fees cover these services.
Scenario 2: Project Nebula uses its own fiscal host
Project Nebula is now under the umbrella of an established non-profit organization that acts as its fiscal host. The non-profit has its own bank accounts and handles all legal and financial compliance.
- Contribution: An individual contributor donates $100 to Project Nebula.
- Open Collective Platform Fee: 0% of $100 = $0.
- Payment Processor Fee (e.g., PayPal): Assuming 3.49% + $0.49 per transaction for online payments, this would be (0.0349 * $100) + $0.49 = $3.49 + $0.49 = $3.98. (Rates for PayPal merchant fees can vary.)
- Total Fees: $0 (platform) + $3.98 (processor) = $3.98.
- Net Amount Received by Project Nebula: $100 - $3.98 = $96.02.
Here, Project Nebula pays no Open Collective platform fees, only the external payment processing costs. The administrative burden of fiscal hosting falls on the non-profit.
Scenario 3: Monthly recurring contributions
A collective receives $500 in recurring monthly contributions, using Open Collective's fiscal host.
- Monthly Contributions: $500.
- Open Collective Platform Fee: 5% of $500 = $25.
- Payment Processor Fees: If these are individual contributions (e.g., five $100 contributions), the processor fees would be calculated per transaction. For simplicity, assuming an average of 3% for all transactions: 3% of $500 = $15.
- Total Monthly Fees: $25 (platform) + $15 (processor) = $40.
- Net Monthly Income: $500 - $40 = $460.
These examples highlight that the primary variable in Open Collective's pricing is the choice of fiscal host, which directly impacts the 5% platform fee. Payment processor fees are an additional, consistent cost across all scenarios.
How the pricing compares
Open Collective's pricing model differs significantly from many alternatives, particularly those focused on creator monetization or traditional crowdfunding. Its emphasis on fiscal hosting and transparency for community-led projects shapes its cost structure.
Patreon
Patreon typically charges a percentage of creators' earnings, ranging from 5% to 12%, depending on the tier chosen. These tiers often include different feature sets, such as dedicated support or team accounts. Patreon's model is generally geared towards individual creators or small teams offering exclusive content or experiences to patrons. Like Open Collective, Patreon also passes on payment processing fees to creators. However, Patreon's focus is less on collective transparency and more on direct creator-to-fan monetization, often without the fiscal hosting component that Open Collective provides.
GitHub Sponsors
GitHub Sponsors is specifically designed for funding open-source projects and developers. GitHub does not charge any platform fees for contributions made through GitHub Sponsors. This means 100% of the sponsorship (after payment processing fees) goes to the sponsored developer or organization. GitHub Sponsors also covers payment processing fees for sponsors, meaning developers receive the full sponsored amount. This model is highly competitive in terms of cost, making it attractive for projects deeply embedded within the GitHub ecosystem. However, it does not offer the comprehensive fiscal hosting services or the broad community management tools that Open Collective provides for non-code-related collectives or those outside GitHub.
Liberapay
Liberapay operates on a donation-based model for its own platform fees. Users can choose to donate to Liberapay to support its operations. For creators, Liberapay charges no platform fees on contributions received. Similar to Open Collective, payment processing fees still apply. Liberapay focuses on recurring donations for creators and projects, emphasizing a non-commercial, open-source ethos. While it shares the "no platform fee" approach with some Open Collective configurations, Liberapay does not offer fiscal hosting services, requiring creators to manage their own legal and financial structures.
Key Differentiators
- Fiscal Hosting: Open Collective's integrated fiscal hosting is a major differentiator. While it incurs a 5% fee, it removes significant administrative and legal burdens for nascent projects. Alternatives like Liberapay and GitHub Sponsors typically require the recipient to have their own legal entity.
- Transparency: Open Collective's core value proposition revolves around financial transparency for collectives, making all contributions and expenses public by default. While other platforms offer some level of reporting, Open Collective's model is built around this principle.
- Target Audience: Open Collective is specifically tailored for communities, open-source projects, and non-profits seeking transparent financial management. Patreon targets individual creators, and GitHub Sponsors focuses on open-source developers.
In summary, Open Collective's pricing is competitive, especially for projects that benefit from its fiscal hosting services, where the 5% fee provides a crucial administrative solution. For projects with existing fiscal hosts, its 0% platform fee offers a cost-effective way to utilize its community and transparency tools, comparable to or better than some alternatives in terms of direct platform costs, though payment processor fees remain a constant factor across most platforms.