How Funds Will Be Managed
We're evaluating the best legal structure for this project. Here's what we're considering and why it matters to you:
Option 1: Fiscal Sponsorship (Most Likely First Step)
A fiscal sponsor is an existing registered nonprofit that "hosts" our project. This gives you tax-deductible donations from day one without waiting 6–12 months for independent nonprofit registration. The sponsor handles compliance, accounting, and reporting. They typically charge 5–10% of funds raised as an administrative fee.
Organizations like GlobalGiving and Open Collective offer this model. We're evaluating which partner best aligns with our mission and geographic focus.
Option 2: Independent Nonprofit
If the project grows beyond approximately $50,000 per year in donations, we'll transition to an independent registered nonprofit. This means full control over strategy and funds, the ability to apply for grants directly, and greater credibility with institutional donors. It also means a board of directors, annual filings, and real governance — which is exactly the kind of accountability this project should have.
Option 3: Social Enterprise Arm
For earned revenue — tourism booking commissions, guide training programs, artisan marketplace sales — a social enterprise structure makes sense alongside the nonprofit. Revenue from travelers directly funds community programs without depending solely on donations.
Our commitment: Whatever structure we choose, we will publish the decision and reasoning on this page. You'll know exactly what percentage goes to the community, what covers operations, and why.