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grants-and-stipends.md

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Monetization via Grants and Stipends

Contributions made from institutions, funds, companies, foundations, or organizations to individual maintainers, contributors, or OSS projects. Often these are large or recurring payments to enable quasi-salaries that do not require repayment.

Requires:

  • Application for grant or stipend
  • Setup of a payment receiver (might require incorporation / freelancing or fiscal host)
  • Recurring "documentation activites" to document the use of the funding

Variants & Options:

  • Single grant: One-time contribution
  • Recurring grant: Monthly recurring contributions

Examplary Funds

Evaluation

Characteristics Value Note
Effort to set-up Weeks Applications often require longer descriptions and impact analysis
Effort to maintain Medium Often runs automatical for several month
Cost to set-up None
Cost to maintain None
One-time Income Medium Can encompass several person-month for salaries
Recurring Income Medium Often runs for several month but very hard to renew for a second period
Income Predictability Low Stable for several months but very hard to renew or find another grant
Full income Threshold 1+
Recipient I + C Often specific for a person but can go to a legal entity
Additional Work Low Might require documentation, PR work, etc.
Visibility None Projects seek out funds - no visibility required / possible?
Necessity to pay Low Completely voluntary but funds often have to spend their budget
Entry Threshold Medium Often easy if maintainers are from one country. Harder for international projects.
Countervalue Work Can range from unrestricted use of money to development of specific features
Scalability Low Multiple grands not always possible
Effort for marketing N/A Funds often have application phases
Competitors M Another maintainer might be a competior for a person-specific grant
Software types All Easier for high impact / visibile projects that can be explained to the public