A coalition of prominent open-source programmers and a venture capital investor has established the Open Source Endowment, a nonprofit organization aimed at addressing the ongoing funding challenges faced by open-source software development. This initiative brings together industry leaders such as Thomas Dohmke, former CEO of GitHub, and Mitchell Hashimoto, founder of HashiCorp, which recently sold to IBM for $6.4 billion.
The Open Source Endowment has already secured over $750,000 in commitments and aims to reach $100 million in assets within seven years, according to its founder, Konstantin Vinogradov, a venture investor with a background in open-source and infrastructure software. The organization has recently obtained formal 501(c)(3) status and is actively seeking to create a sustainable funding model for open-source maintainers.
Vinogradov highlighted a pervasive concern within the open-source community: “There is no source of sustainable funding for open-source maintainers. And that’s a really big problem.” This statement reflects the reality that up to 86% of open-source developers are not compensated for their contributions.
Addressing a Longstanding Issue
The lack of financial support in the open-source sector has been an enduring issue. Open-source software forms the foundation of the internet, with approximately 55% of the technology stack in organizations relying on these tools. Despite this reliance, many developers voluntarily work on critical projects without any financial incentive, leading to burnout among maintainers.
This problem gained widespread attention in 2014 following the OpenSSL Heartbleed incident, where a significant bug was discovered in a widely used security project maintained by a single developer. Various attempts to improve funding for open-source projects have been made over the years, including donations from corporate sponsors. For instance, the Linux Foundation raised nearly $300 million in 2022, primarily from corporate contributions, and provided grants through its Alpha-Omega Project, distributing $5.8 million to 14 projects in 2025.
While some projects accept corporate donations, concerns persist regarding the influence these sponsors may wield. Recently, controversy in the Ruby community arose when key maintainers departed due to disagreements with its major sponsor, Spotify. The Open Source Endowment aims to navigate these challenges by ensuring that funding comes from private sources, thereby mitigating potential conflicts of interest.
A Sustainable Future for Open Source
Vinogradov emphasizes that endowments require patience and a long-term commitment. These funds typically invest a majority of their assets, spending only a fraction of their income each year, which can take years to yield substantial returns. However, if executed effectively, this model could provide enduring support for vital open-source projects.
With its initial funding and backing from over 50 donors, the Open Source Endowment is positioned to make a significant impact on the sustainability of open-source software development. As the landscape of technology continues to evolve, the need for reliable support for open-source maintainers has never been more critical. The success of this initiative could redefine how open-source projects are funded and maintained, ultimately benefiting the broader tech community.
