Crowdfunding FAQs

What are the benefits of hosting my project on LFX Crowdfunding?

LFX Crowdfunding enables a simple, managed process for your open source project to raise funds from donors to reimburse project contributors for project expenses. Crowdfunding is free for open source projects, and every dollar of the first $10M raised through Crowdfunding will be passed directly to the projects hosted on LFX, resulting in more money to support critical work on your project. Additionally, funds raised via Crowdfunding can be applied towards mentorship programs via the LFX Mentorship service.

Are donors charged fees for donations to a project on LFX platform?

For the first $10M USD donated to projects through LFX Crowdfunding, the Linux Foundation will underwrite all platform fees as well as any fees charged by third-party payment processors. Every dollar of the first $10M raised through Crowdfunding will be available to the projects hosted on LFX for their use. Once the $10M milestone has been reached, contributions from individual and corporate donors will be subject to a 5% platform fee plus a payment processor fee.

Does LFX require access to my code repository?

Yes, access to your code repository is required to support security vulnerability scanning by LFX Vulnerability Detection. During the project onboarding process you’ll be required to authenticate with your GitHub ID to give LFX read-only access to the list of repositories that you maintain.

Can I set my own fundraising goals, or does LFX set goals for me?

Project maintainers can set their own project fundraising goals. The project onboarding guide makes it easy to set goals and allocate percentages of that goal towards different options, like development, marketing, meetups, and travel. Project maintainers have the ability to adjust goals and allocations at any time.

What happens when a fundraising goal is reached?

Goals are guidelines, not hard stops, so you’ll be able to continue raising money beyond your goals. In addition, as you see progress in one or more areas, you can (and should) update them to reflect how you plan to utilize these additional funds.

How do projects review, allocate, and spend donated funds?

All expense reporting, approval, and reimbursement is currently handled via a third party application integrated with LFX. After an expense report or invoice is reimbursed through that application, it is synchronized with LFX to provide full transparency.

Do donors see how projects allocate and spend donated funds?

Yes, donors can see how funds are allocated and spent via a project’s public ledger. The Linux Foundation reviews, administers, and processes all requests for expenditures to ensure oversight for use of donated funds. This is done with full transparency so companies can see how donated funds are allocated.

Who decides whether a particular use of funds aligns with a donor's allocation?

Donors can suggest how they would like their funds to be used by selecting one of the project’s current goals at the time the donation is made, but project maintainers may use funds according to allocations other than what the donor has requested.

Can a donor object to a particular use of funds by a project?

No, after donors complete their donation, they cannot later object to a project’s use of it. Prospective donors can review the project’s open ledger to see how it has previously used funds, as part of determining whether to donate to that project.

Do donors receive refunds if a project changes its goals or doesn’t allocate funds to specified goals?

No, donors cannot receive refunds or object to a project’s use of allocated funds. LFX provides a transparent and open ledger to provide visibility into expenditures and to help ensure donated funds are not abused.