Mastodon announces transition to non-profit structure | TechCrunch

submitted by Otter

techcrunch.com/2025/01/13/mastodon-announces-tr…

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FundMECFSResearch

It was for profit?

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Microw

They previously had a pretty unique structure (gemeinnützige GmbH) but the german authorities stripped them from that status saying "free social media is not a public benefit purpose".

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jagged_circle

Libre software isn't a public benefit under German law?!?

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Microw

Well at least not according to the legal view of the tax authorities.. from what I have heard anecdotally over the years about german tax authorities, they seem to be very much not living in a 21st century digital world.

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Otter [OP]

See also this comment in the other thread: https://lemmy.world/comment/14448522

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greenshirtdenimjeans

Is this similar to what Proton did?

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NineMileTower

This is exciting for Mastodon's user, I'm sure.

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pelespirit

Is the money getting what it wants or is this making sure the money is quieter? I don't understand.

Last year, the company formed a U.S.-based non-profit to get more funds and grants with Twitter co-founder Biz Stone on the board. At the same time, the organization lost its non-profit status in Germany at the same time.

While Mastodon relies on donations and sponsorships to operate, Bluesky, its main competitor working on a rival decentralized network, is reportedly raising a new funding round from investors at a $700 million valuation.

The blog post noted that the new Europe-based non-profit entity will wholly own the Mastodon GmbH for-profit entity. The organization is in the process of finalizing the place where the new entity will be set up.

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pdxfed

OpenAI's events of last year has me just slightly less than impressed at the ability of a non-profit board/org to be able to contain/control the wild efforts of capital when it matters.

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