Using Open Collective as a Fiscally Sponsored Project

From The Museum of Human Achievement

Purpose

MoHA uses a platform called Open Collective to invoice and make payments for sponsored projects. Collectives, organizations, or individuals who are fiscally sponsored by the Museum of Human Achievement can use this article to get familiar with some basic Open Collective functionality.

Reimbursements & Expenses

An expense is used to pay someone for a specific service or product, while a reimbursement is used to pay someone back for a purchase they made on behalf of the group or project:

Expense

To pay someone for a specific service or product, submit an invoice or receipt to Open Collective. Once an admin approves the expense, the expense will be paid. For individuals, Expenses for services or labor totaling over $600 in a given year will result in the individual or organizer being sent a 1099 and qualifying as taxable income.

Reimbursement

To pay someone back for a purchase they made on behalf of the group or project, you can submit a receipt to Open Collective and wait for it to be approved by an admin. You must include a receipt for all reimbursements.

W9 & 1099

For contract workers, artists, and collaborators receiving more than $600 in a calendar year will also need to be sent a W-9 form. A 1099 will be sent to anyone getting expenses for services or labor reimbursements over $600.

For organizers/individuals, when possible, please include THIS LINK in initial onboarding communications with your collaborators for ease of bookkeeping.

Getting Started

  1. Go to https://opencollective.com/create-account and follow all the steps to create an account.
    • If you are applying as an organization, create an organization profile.
  2. Apply to be fiscally sponsored by MoHA. Go to: https://opencollective.com/themuseumofhumanachievement.
  3. On the right of MoHA’s page, select Apply.
  4. To get paid, add a bank account. You cannot get paid with Venmo, Cash App, etc.
  5. If you get paid more than $600, you must fill out a W9.

Submit Your First Invoice

  1. Log in to your Open Collective account, go to https://opencollective.com/themuseumofhumanachievement.
  2. On the right of MoHA’s page, select Select Invoice.
  3. Fill out payee information, including financial information such as:
    • Currency type (typically USD)
    • Location of bank (Country only, typically US)
    • Full name of account holder
    • ACH routing number
    • Account number
    • Account type
      • Make sure the box next to Save this info is checked.
  4. Select Next.
  5. Title and create your invoice. Include a description, date, and amount.
    • You can upload an invoice document.
  6. Select Next.
  7. At the bottom of the page, select Submit Expense.
  8. MoHA will then approve and submit payment.

Email Templates

All collaborators must create an Open Collective account and join your project to be paid.

You can include these instructions for one-time/first-time payees or Recurring Payees recurring payees. Replace the text in ALL CAPITALS, ITALICS with customized content.

First Time / One Time Payee

Hello PAYEE,

In order to receive payment from SPONSORED PROJECT you will be invited to submit an expense via our money management platform Open Collective.

Step 1 - Create an Open Collective Account

  1. Go to Open Collective/
  2. You will receive an email prompting you to click a “magic link,” which will walk you through the process.
    • Please use your legal name for your account. Open Collective is a payment platform and requires accurate personal and banking information.
  3. Log in to your account by clicking the magic link sent to your email.


Step 2 — Submit a W9 form via THIS LINK (you’ll only have to do this once)

Step 3 — Submit your invoice through Open Collective for services rendered or reimbursement.

  1. Go to the SPONSORED PROJECT (LINK) Open Collective Profile.
  2. From the project page, click Action > Submit expense.
  3. Select an option:
    • Invoice - Bill for your time or your service.
    • Reimbursement - Get reimbursed for a purchase you made.
  4. Fill out “Payee Information,” double check that your information is correct.
    • Note: A bank account must be used, you cannot get reimbursed via PayPal, Venmo, or other mobile payment apps. Press the Next button once it becomes highlighted.
    • If not highlighted, look for fields you have left empty.
  5. Once all fields are filled in, click the Next button.
  6. Give your expense a title.
    • Use a repeatable title template, for example:
      • ✅ name of person being paid, project, date
        • ✅Dale Francis - songwriter Festival musician - 11/26/28
        • ❌Musician
  7. Fill out all remaining fields. You can also upload an image/receipt.
  8. Click Next.
  9. Review the “Invoice Summary.”
    • Double-check that all information is correct. Once submitted, funds cannot be returned or rerouted.
  10. Click Submit expense.


Step 4—No action is required. Once your expenses have been approved, you will receive a confirmation email.

Recurring Payees

Hello PAYEE,

In order to receive your next payment from SPONSORED PROJECT you are invited to submit an expense via our money management platform Open Collective.

Step 1 — Log in to Open Collective

Open Collective doesn’t use passwords. When you log in with your email, you will be sent an email with a magic link that will sign you in to your account.


Step 2 — Submit your first invoice through Open Collective for products or services rendered.

  1. Go to the SPONSORED PROJECT (LINK) Open Collective Profile.
  2. From the project page, click Action > Submit expense.
  3. Select an option:
    • Invoice - Bill for your time or your service.
    • Reimbursement - Get reimbursed for a purchase you made.
  4. Fill out “Payee Information,” double check that your information is correct.
    • Note: A bank account must be used, you cannot get reimbursed via PayPal, Venmo, or other mobile payment apps. Press the Next button once it becomes highlighted.
    • If not highlighted, look for fields you have left empty.
  5. Once all fields are filled in, click the Next button.
  6. Give your expense a title.
    • Use a repeatable title template, for example:
      • ✅ name of person being paid, project, date
        • ✅Dale Francis - songwriter Festival musician - 11/26/28
        • ❌Musician
  7. Fill out all remaining fields. You can also upload an image/receipt.
  8. Click Next.
  9. Review the “Invoice Summary.”
    • Double-check that all information is correct. Once submitted, funds cannot be returned or rerouted.
  10. Click Submit expense.
  11. Notify SPONSORED PROJECT that you submitted your invoice via this email thread.


Step 3—No action is required. Once your expense has been approved, you will receive a confirmation email. If you have any questions or issues, please reach out via this email thread.

Related Resources

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