zlacker

>>stevek+(OP)
The biggest question I have is whether or not this new foundation will be a 501(c)(3) charity (or European analogue), versus a 501(c)(6) "business league".

The big distinction between the two of them is that donations to a 501(c)(3) charity are tax deductible and therefore may not be used to unduly advantage any commercial entity, while donations to a 501(c)(6) are not tax deductible and thus are unrestricted.

If it's a 501(c)(6), then the foundation will serve its biggest donors first and foremost. In theory, it may also serve the public good — but only to the extent that it is in the interest of those donors.

>>rectan+pD
A reasonable BOD can ameliorate any of the downsides with a (C)(6) quite easily, and while the perception may linger, it's entirely possible and likely that the Foundation will serve the Rust community regardless of whatever legal structure they choose. There are plenty of reasons to avoid (C)(3)s as well if you do want to fund the project with corporate dollars since those contributions are usually routed through an organization's philanthropic arm and usually can't be approved by business unit owners. (C)(3)s also have more stringent reporting requirements which can be a nice 'check' on any abuses but usually result in a lot more overhead.