A new nonprofit called the Open Source Endowment is taking aim at one of software’s most stubborn problems: how to permanently fund the maintenance of the open tools the world runs on. Formed by a venture investor alongside a roster of celebrated programmers, the 501(c)(3) is designed to build a durable capital base whose investment returns can underwrite critical open source work indefinitely.
The organization has secured more than $750,000 in early commitments and is targeting $100 million in assets within seven years. Rather than rely on year-to-year sponsorships, the endowment structure will invest principal and channel a steady stream of support to maintainers, aiming to end the boom-bust cycle that has long plagued essential projects.
What Makes This Open Source Endowment Attempt Different
Most open source funding today hinges on corporate goodwill, one-off grants, or platform tip jars. Those help, but they are episodic and often shaped by shifting product priorities. Endowments take a different path: they pool private capital, invest it for the long term, and disburse a predictable annual allocation. If managed well, the fund becomes an independent, perpetual backstop for the public digital infrastructure everyone uses but no one owns.
Konstantin Vinogradov, who spearheaded the effort, argues that durable support ultimately depends on privately managed capital with patient timelines and transparent governance. Building such a fund requires restraint—endowments typically spend only a sliver of investment returns each year—but the payoff is a steady lifeline for maintainers without strings attached.
Big-Name Backers Signal Broad Buy-In Across Ecosystems
Early supporters include Thomas Dohmke, the former GitHub chief now building dev-tool startup Entire; HashiCorp founder Mitchell Hashimoto, whose company was acquired by IBM; Supabase founder and CEO Paul Copplestone; a co-founder of NGINX; the creators of Vue.js and cURL; and executives from Elastic and Spotify. In total, more than 50 donors have signed on, and a governing board is already in place to oversee investment and grantmaking policies.
The mix of maintainers, entrepreneurs, and operators matters. It brings credibility across ecosystems and signals that this is not a vendor program or a marketing initiative—it is an attempt to professionalize the financial plumbing behind community-led software, with guardrails that outlast any one sponsor.
How Projects Will Be Chosen for Endowment Support
The endowment says it will focus on projects with demonstrable, widespread impact: high user counts, deep dependency trees, and broad adoption across stacks. It also plans to prioritize efforts that are chronically underfunded and not already covered by major umbrellas, such as the Linux Foundation’s Alpha-Omega initiative and other large-scale grant programs.
Expect data-driven selection. Signals like dependency graphs, criticality scores, and downstream risk will likely factor into decisions, alongside transparent criteria and community input. The goal is to direct dollars where a modest grant can dramatically reduce burnout, improve security hygiene, and keep releases on schedule.
Why Open Source Needs Durable, Long-Term Funding
Open source underpins everything from operating systems and databases to build tools and AI frameworks. Studies routinely find that open source accounts for up to 55% of the average organization’s technology stack, yet up to 86% of developers who keep these projects running are not paid for their maintenance work. That mismatch fuels burnout and fragility.
We have seen the costs of neglect. The Heartbleed crisis exposed how a security library used across the internet hinged on a tiny, overstretched team. The left-pad incident showed how a single maintainer’s decision could ripple through the JavaScript universe. Log4Shell and the recent xz backdoor scare underscored how supply-chain vulnerabilities can erupt in ubiquitous components with little financial safety net. Each episode repeats the same lesson: critical code, unsupported, becomes a systemic risk.
Fitting In With Existing Funding Channels
The Open Source Endowment is not trying to replace existing players; it aims to complement them. The Linux Foundation reports hundreds of millions in annual revenue, and its Alpha-Omega program has issued multi-million-dollar grants to harden widely used projects. Corporate donors have also stepped up at times—one AI lab recently gave $1.5 million to the Python Software Foundation—yet such gifts are sporadic relative to the value extracted from the ecosystem.
There is also the question of influence. Some communities worry that large sponsors can nudge roadmaps or governance. The Ruby ecosystem’s public dust-up involving a major sponsor highlighted how fraught these relationships can become. By anchoring support in an independent endowment with diverse donors and a clear charter, the new nonprofit aims to insulate maintainers from that pressure while providing stable, long-horizon funding.
The Road Ahead for Building a Sustainable Endowment
Reaching $100 million will require both community trust and commitments from the enterprises that benefit most from open source. A back-of-the-envelope path is plausible: if a few hundred large adopters tithed a sliver of their software or cloud budgets over several years, the target could be met quickly, turning today’s pledges into permanent operating income for the commons.
The hard part will be execution—codifying an investment policy, publishing transparent grant criteria, measuring impact, and staying ruthlessly focused on the unglamorous maintenance work that prevents the next crisis. If the Open Source Endowment sticks that landing, it could transform open source funding from a charity treadmill into a self-sustaining institution.