Open Collective UK: Complete Guide (2026)
Costs, fiscal hosts, charity registration & legal requirements explained
Quick Answer: Key Facts
- Cost to Your Group: 5% fiscal host fee only
- Platform Fee: Optional tip (added on top by donors, not taken from donation)
- Charity Registration: NOT required
- Bank Account: NOT required
- Legal Entity: NOT required (fiscal host provides this)
- Setup Time: 2-4 weeks (includes general meeting approval)
- Requirements: Written financial policy, values alignment
- Real Example: Alnwick Mutual Aid raised £1000s during COVID-19
Perfect for: Mutual aid groups, community projects, grassroots campaigns, tenant unions
How Much Does Open Collective Cost in the UK?
Cost to your group: 5% fiscal host fee
Open Collective has a unique fee structure:
| Fee Type | Rate | How It Works |
|---|---|---|
| Fiscal Host Fee | 5% | Taken from donation. Covers legal compliance, tax handling, expense processing, financial administration |
| Open Collective Platform Fee | 0-15% (donor chooses) | Optional tip added ON TOP of donation by donor. Supports the Open Collective platform. NOT taken from your group's funds. |
| TOTAL COST TO YOUR GROUP | 5% | Only the fiscal host fee is deducted from donations |
Example: £100 Donation
What the donor pays:
- £100.00 - Donation to your group
- + £10.00 - Optional platform tip (example: 10%, donor can choose 0-15% or skip)
- = £110.00 - Total donor might pay (if they choose 10% tip)
What your group receives:
- £100.00 - Donation received
- - £5.00 - Fiscal host fee (5%)
- = £95.00 - Your group receives
What you get for 5%: Legal entity, tax compliance, financial accountability, transparent budget tracking, expense reimbursement system, no personal liability
Important: Platform Fee is Optional & Donor-Paid
The Open Collective platform fee (usually 5-10%) is an optional tip that donors can add on top of their donation. It does NOT come out of your group's funds. Donors can:
- Choose to add a tip (0-15%)
- Skip it entirely
- The tip supports Open Collective's free platform
- Either way, your group gets 95% of the actual donation amount
Do I Need Charity Registration for Open Collective UK?
NO. You do not need:
- ❌ Charity status (Charity Commission registration)
- ❌ CIC (Community Interest Company) registration
- ❌ Limited company formation
- ❌ Any legal entity whatsoever
How Is This Legal?
Open Collective uses fiscal sponsorship - a well-established legal structure:
- Fiscal host (like Food & Solidarity) is the registered legal entity
- They hold funds on behalf of your grassroots group
- You maintain operational independence
- They handle all legal/tax compliance
This model is completely legal in the UK and used by thousands of community groups.
Open Collective vs Traditional Charity Registration
✓ With Open Collective
- Setup time: 2-7 days
- Cost to group: 5% fiscal host fee only
- Platform fee: Optional donor tip (not from group funds)
- Legal entity: Not required
- Bank account: Not required
- Admin burden: Low
- Transparency: 100% public
- Personal liability: None
- Accounting: Handled by fiscal host
✗ Traditional Charity
- Setup time: 3-12 months
- Cost: £100s setup + ongoing accounting
- Legal entity: Required
- Bank account: Required
- Admin burden: High
- Transparency: Annual reports
- Personal liability: Trustees liable
- Accounting: You must arrange
What Is a Fiscal Host?
A fiscal host is an established legal entity (charity, CIC, or company) that:
- Holds funds legally on behalf of grassroots groups
- Processes donations through their bank account
- Handles tax compliance and financial regulations
- Approves expense reimbursements after reviewing receipts
- Provides financial accountability through third-party review
Food & Solidarity as UK Fiscal Host
We support grassroots groups across the UK:
- 🤝 Shared values: We're activists supporting activists
- 📊 Financial management: We handle compliance so you organize
- 🌐 Network access: Connect with other UK grassroots groups
- 💡 Knowledge sharing: Learn from successful campaigns
- ⚖️ Accountability: Third-party expense approval
Requirements to Partner with Food & Solidarity
Before we can accept your group as a fiscal host partner, you need:
1. Financial Policy
Your group must have a written financial policy that covers:
- How expenses will be approved within your group
- Who can submit expense claims
- What expenses are legitimate for your mission
- How financial decisions are made
Don't have one? We can help you create a simple policy template.
2. General Meeting Approval
Your application to partner with Food & Solidarity must be approved by our general meeting:
- Food & Solidarity members vote on fiscal host partnerships
- This ensures alignment with our values and mission
- We review your group's work and proposed activities
- General meetings typically occur monthly
Timeline: Allow 2-4 weeks from application to approval
Application Process
- Contact us: Email organiser@foodandsolidarity.org
- Initial discussion: We discuss your group's work and ensure fit
- Submit application: Provide group info and financial policy
- General meeting review: Members vote on your partnership (2-4 weeks)
- Setup Open Collective: Once approved, create your page
- Start fundraising: Begin accepting donations transparently
Contact: organiser@foodandsolidarity.org
Frequently Asked Questions
Do I need a bank account?
No. Your fiscal host holds funds in their account. When you submit expenses with receipts, they reimburse you directly.
What do I need before applying to Food & Solidarity?
You need a written financial policy for your group. This doesn't have to be complex - just a simple document covering how expenses are approved, who can claim, and what's legitimate spending for your mission. We can provide a template if you need help.
How long does the approval process take?
Typically 2-4 weeks from initial contact to approval. This includes: initial discussion (2-3 days), application review, and general meeting vote (meetings are typically monthly). Plan ahead if you need fundraising capability by a specific date.
What can I use the funds for?
Legitimate expenses related to your community work: supplies, materials, printing, food for events, transport, equipment, venue hire. Everything requires receipts and fiscal host approval. Your financial policy should outline what's acceptable for your specific mission.
Is my financial data public?
Yes - and that's the point. All donations and expenses are publicly visible on your Open Collective page. This transparency builds trust with your community.
Can I use Open Collective for a one-off fundraiser?
Yes. Many groups use Open Collective for specific campaigns or projects, not just ongoing operations.
What if I'm outside Newcastle?
Food & Solidarity supports groups across the entire UK. You don't need to be in Newcastle or the North East.
What if my application isn't approved?
If there are concerns, we'll discuss them with you before the general meeting. Often it's about clarifying your work or adjusting your financial policy. If it's not a good fit, we can suggest other fiscal hosts that might better align with your group.
Real UK Example: Alnwick Mutual Aid
During COVID-19, Mutual Aid Alnwick used Open Collective + Food & Solidarity fiscal hosting to:
- 💰 Raise £1000s in transparent donations
- 🏪 Fund a community phone box larder
- 📦 Provide essential supplies to struggling residents
- 🤝 Build community trust through financial transparency
- ⚡ Focus on organizing instead of admin
"Having a fiscal host means we didn't have to worry about the complex legal side of things that comes with handling money. That's OpenCollective's department, leaving you with more time for mutual aid work." - Katie, Mutual Aid Alnwick
How to Get Started (6 Steps)
Step 1: Develop a Financial Policy
Create a simple written policy for your group covering: who can approve expenses, what's a legitimate expense for your mission, how decisions are made. Required before application. Need help? We can provide a template.
Step 2: Contact Food & Solidarity
Email us at organiser@foodandsolidarity.org. We'll discuss your group's work, values alignment, and the fiscal hosting process. Time: Initial response within 2-3 days.
Step 3: Submit Application
Provide information about your group: mission, activities, team, and your financial policy. We review to ensure good fit and prepare for general meeting vote.
Step 4: General Meeting Approval
Your application goes to Food & Solidarity's general meeting where members vote on fiscal host partnerships. This ensures democratic decision-making and values alignment. Time: 2-4 weeks (depending on meeting schedule).
Step 5: Create Open Collective Account
Once approved, sign up free at opencollective.com. Create page for your group, connect with Food & Solidarity as fiscal host. Time: 10 minutes.
Step 6: Start Accepting Donations
Share your Open Collective page. Donors contribute via card, bank transfer, PayPal. All donations publicly visible immediately. You're now fundraising transparently.
Ready to Start Fundraising Transparently?
Partner with Food & Solidarity as your UK fiscal host. Accept donations without bank account or charity registration.
Contact Us About Fiscal Hosting View Our Open Collective