nlnet.mdwn

   1 # NLNet
   2
   3 With many thanks to <http://nlnet.nl> there are six inter-related grants,
   4 documented at the [[nlnet_proposals]] page.
   5
   6 NLNet is a Foundation and so does not have employees or enter into "work
   7 for hire" agreements.  It can give money to Corporations, but not
   8 at a "Commercial Business-to-Business" rate which would be expected
   9 to include payment of Corporation insurance, tax etc.)
  10 Universities, individuals, and other Foundations are perfectly fine.
  11
  12 They have an extremely knowledgeable International Tax Law specialist
  13 who has negotiated tax agreements with most countries in the world and
  14 consequently, subject to your Accountant checking with the law in your
  15 country, donations - and they are charitable donations - are extremely
  16 likely to be 100% tax-deductible.
  17
  18 The process is as follows:
  19
  20 * Proposals are submitted, reviewed, independently audited and (sometimes)
  21   approved.
  22 * Accepted proposals submit a Project Plan listing a set of milestones,
  23   each of which has a fixed budget associated with it (note: not an
  24   hourly rate!)
  25 * The Project Plan becomes part of a Memorandum of Understanding, signed
  26   by the team (note: not a contract!)
  27 * On 100% completion of tasks *or subtasks* (which must add up ultimately
  28   to the total allocated budget) after approval by the project leader,
  29   an rfp (Request for Payment) is submitted by email to nlnet.
  30 * The rfp is paid directly by bank transfer from NLNet
  31   *not by the Libre-SOC project*
  32
  33 Note that the lack of hourly rate and the lack of contractual obligation
  34 is what enables this to be considered charitable donations.
  35
  36 This lack of contractual obligation also means that if the work is not
  37 done, then there is no penalty (for you). The only thing that happens
  38 is we grumble a bit and have to find someone else to do the work.
  39
  40 It is **your responsibility** to comply with local law and to consult an
  41 Accountant. Your Accountant will be able to confirm the International
  42 Tax Agreements, from the details and/or contact information on NLNet's
  43 website <https://nlnet.nl/foundation/ANBI.html>.  If you are not familiar
  44 with this, or if your Accountant is unfamiliar with International Tax
  45 Agreements, please contact us, and we can put your Accountant in touch
  46 with Bob Goudriaan, the Finance Director of NLnet who specialises in
  47 International Tax Law.  Bob can explain the details to your Accountant;
  48 your Accountant can explain it to you.
  49
  50
  51 # NLNet LibreSOC Top-level
  52
  53 * 2019-02-012 Core <https://bugs.libre-soc.org/show_bug.cgi?id=191>
  54 * 2019-10-043 Wishbone <https://bugs.libre-soc.org/show_bug.cgi?id=175>
  55 * 2019-10-031 Video <https://bugs.libre-soc.org/show_bug.cgi?id=137>
  56 * 2019-10-029 Coriolis2 <https://bugs.libre-soc.org/show_bug.cgi?id=138>
  57 * 2019-10-042 MESA <https://bugs.libre-soc.org/show_bug.cgi?id=140>
  58 * 2019-10-032 Proofs <https://bugs.libre-soc.org/show_bug.cgi?id=158>
  59 * 2019-10-046 Standards <https://bugs.libre-soc.org/show_bug.cgi?id=174>
  60
  61 # NLNet new members onboarding FAQ <a id="faq">
  62
  63 This FAQ is written to assist people in understanding the key difference
  64 between being "financially rewarded with charitable donations" and
  65 "a job / contract / work-for-hire agreement".
  66
  67 * Q: I heard that NLnet is EU funded, I am not in the EU therefore I
  68   cannot help?
  69  - A: we get this a lot: it is wrong.  NLnet is quite happy to give
  70       donations for work done by people outside of the EU, for the PET
  71       Programme tasks (<http://nlnet.nl/PET>).  The "Assure" Programme
  72       is slightly different.
  73 * Q: I work for a company, can my company receive donations?
  74  - A: of course!  Just bear in mind that NLnet will not pay your employer's
  75       Corporation Tax contributions (because NLnet is a Charitable
  76       Foundation).
  77 * Q: I am from India. Can i receive charitable donations?
  78  - A: Directly? no you can't!  This is due to a Law in India that
  79       prohibits India Nationals from directly receiving **any** Charitable
  80       Donations from Foreigners!  However, "work" turns out to be
  81       absolutely fine, and if you have a foreign bank account (outside
  82       of India), that's also fine.  It's transfers to **India** bank
  83       accounts from Foreign Charities that is prohibited by India Law.
  84       There are solutions, basically.
  85 * Q: So I start work on a bug: do I get paid "per hour"?
  86  - A: No.  NLnet's donations are for "results" (Milestones) not time.
  87       This avoids NLnet being, for example, qualified under local law
  88       (e.g. UK IR35) as an "employer" (which would interfere with their
  89       status and responsibilities as a Charitable Foundation).
  90 * Q: What if I don't complete the work?
  91  - A: then you can't submit a Request for Payment.
  92 * Q: Are there any penalties or consequences for me if I don't?
  93  - A: No.  there's no contract (it's a Memorandum of Understanding), so
  94       no penalties.  You just don't get the associated "gift / donation".
  95 * Q: What if it's a really long task?
  96  - A: We can (and do) split the (pre-agreed) Milestones into sub-tasks
  97       in our bugtracker.  The same rules apply: 100% completion is required.
  98 * Q: What if i take a longer or shorter time?
  99  - A: If it's shorter, great! you still get the same gift/donation (good for
 100       you!)  If it's longer, then, well, this is really no different from
 101       having given a "quote" for a job.  If that's really problematic
 102       we may be able to sort something out.
 103 * Q: So do I pay any tax on what I get paid?
 104  - A: This is a question that you will have to ask your *Accountant*.  In
 105      most jurisdictions, Charitable Gifts (which is what NLnet gives you)
 106      are entirely tax-free, however beyond a certain point some jurisdictions
 107      might start taxing it.  Bottom line: it is **your** responsibility to
 108      check with **your** Accountant.  Not ours, and not NLnet's.  We can
 109      help get you through the "Understanding Hoops" on that however it is
 110      definitely your responsibility and your responsibility alone.
 111 * Q: What was that about a Memorandum of Understanding?
 112  - A: Part of NLnet's funding remit (under the EU Horizon 2020
 113       Programme) and also part of the protection for yourself and for
 114       them, you will need to be listed as a Project Contributor on the
 115       associated Grant's MoU.  Note and reinforcement reminder: *this is
 116       not a contract*, it is simply for the NLnet Foundation's
 117       "Accountability and Audit trails" and is entirely private.
 118       Also note that the MoU specifically states (reinforcing the above)
 119       that you agree that it's your responsibility to contact an Accountant
 120       and to comply with local Tax Law regarding the donations that you
 121       receive.
 122 * Q: What about my privacy in that regard?
 123  - A: NLnet do not give out confidential names and addresses and we
 124       request that you communicate that information directly to them
 125       (not to us as Project Leaders or to other Project Members)
 126 * Q: What about Bank Account information for payments, I mean donations
 127  - A: Again: we request that you pass on the Bank Account information
 128       directly to NLnet.
 129 * Q: So... you - personally - the other LibreSOC developers - are not
 130      paying us or involved in payment in any way?
 131  - A: Correct.  We receive personal charitable donations (gifts) from NLnet,
 132       just like you would, having first also been added to the MoU.
 133 * Q: This all sounds very odd!  I want to consult my Lawyer!
 134  - A: Yeah please don't do that (and please don't complain - especially
 135       publicly, which, very disappointingly, we've seen online - about
 136       the fact that we are asking you not waste Charitable Donations
 137       on a Lawyer.  **PLEASE READ THIS ANSWER CAREFULLY** and if
 138       you do not understand it, **contact** us and ask questions
 139       rather than make public remarks about something that you do not
 140       properly understand).
 141       Paying a Lawyer with Charitable Donations - which you would
 142       receive and then use to pay that Lawyer - is Charitable Donations
 143       completely and utterly wasted for absolutely no good reason,
 144       because that Lawyer will not have the knowledge or expertise to
 145       correctly answer your
 146       question.  Worse than that, you will be asking the **wrong expert**
 147       (unless they are also an expert in International
 148       Finance, specialise in International Tax Agreements, and are
 149       also a Chartered Accountant, or they are prepared to work
 150       "Pro-bono").  NLnet is Charitably funding "Works for the Public
 151       Good".  If you pay your lawyer hundreds to thousands of dollars
 152       for "advice", that money needs to be replenished in your bank
 153       account. That means, ultimately, that NLnet, a Charity, is paying
 154       **your legal costs** to ask a question that **your lawyer** is
 155       not even qualified to answer, because they are **not an Accountant**!
 156       Please instead have your **Accountant** review the International
 157       Tax Agreements that apply to **Charities like NLnet**, and give
 158       your **Accountant** the following information:
 159       <https://nlnet.nl/foundation/ANBI.html> as well as a Reference
 160       to the tax rules that apply to **Charities** of the type that NLnet
 161       is registered as:
 162       <https://en.wikipedia.org/wiki/Algemeen_nut_beogende_instelling>.
 163       Your **Accountant** can check and also explain to you the following
 164       rules for philanthropy in Europe:
 165       <https://www.philanthropyadvocacy.eu/legal-environment-for-philanthropy-in-europe/>.
 166       If your **Accountant** does not understand them, have them contact
 167       Bob Goudriaan directly.  Bob Goudriaan, who is a Chartered Accountant
 168       specialising in International Tax Law, can explain it to your
 169       **Accountant**, your Accountant can explain it to you.
 170       Did we emphasise enough, yet, that this is something that is
 171       within the domain expertise of an **Accountant**, not a **Lawyer**?
 172 * Q: I wanted to ask about "Works for the Public Good".  What does that mean,
 173      in practical terms?
 174  - A: It means that our (your) work - must be made available under Libre
 175       Licenses.  In this project's case we chose the LGPLv3+.
 176 * Q: Do I retain copyright?
 177  - A: Yes you do however we do ask that you make a "dual-assignment" so
 178       that we can enter into (non-exclusive, non-transferrable) re-licensing
 179       agreements to large Corporations that do not like the LGPLv3+.
 180       Given that you would receive a percentage of a substantial amount
 181       of money (which will be a donation by that Corporation) there is
 182       a financial incentive there (licensing deals for GPUs start around
 183       USD 250,000 for the low-end ones and go up from there).
 184 * Q: What's this about transparency?
 185  - A: We are funded under NLnet's Privacy and Enhanced Trust Programme
 186       <https://nlnet.nl/PET>.  The mandate is so that people to be able to
 187       trust what we are doing, and for independent audits to be able to
 188       take place.  Therefore, development discussion needs to be under
 189       resources within our control to record (i.e. not github).  Even the
 190       IRC channel is logged.
 191 * Q: So I have to record *everything*?
 192  - A: No, just make sure to use the bugtracker, mailing lists, IRC channel
 193       gitolite3 and FTP server for general day-to-day *development*.  Not
 194       your "personal conversations" or (if a Professor for example) your
 195       Lectures which happen to mention LibreSOC.
 196 * Q: That sounds nerve-wracking!
 197  - A: This is just how Libre software development is done: entirely publicly!
 198       There is nothing new here in 30+ years of Libre software development,
 199       it's just that it's a condition of involvement rather than optional.
 200       [sotto voice: and to be honest the traffic volume is so high and it's
 201       of such specialist interest that nobody's going to be looking who isn't
 202       genuinely interested :) ]
 203       An additional very important reason: we need proof of prior art,
 204       in case some idiotic patent troll tries to patent ideas they happen
 205       to get a glimpse of.  By keeping the full and complete discussion
 206       on recorded **timestamped** archives such efforts may be invalidated.
 207