Formation Timeline¶

A phase-by-phase plan for building BNI from zero — two developers, no funding, no entities formed — to a sustainable dual-entity operation with active grants and commercial revenue.

flowchart TD
    P0["Phase 0 — Now\nZero money · 2 developers\nBuild the open-source MVP"]
    P1["Phase 1 — Month 1–2\nForm Big Nerd Idea, LLC\n~$150 in filing fees"]
    P2["Phase 2 — Month 2–4\nOpen Collective fiscal sponsorship\nFree — accept donations immediately"]
    P3["Phase 3 — Month 3–6\nFirst revenue · First grant application\nFirst sponsorship donation to Foundation"]
    P4["Phase 4 — Month 4–8\nFile BNI Foundation formally\n~$400 in filing fees"]
    P5["Phase 5 — Month 6–12\n501(c)(3) determination letter\nAnthropic nonprofit pricing unlocked"]
    P6["Phase 6 — Month 12–18\nFirst grant received · $10K–$50K\nFirst part-time stipend possible"]
    P7["Phase 7 — Month 18–36\nSustainable operations\nFull-time founders · First outside hire"]

    P0 --> P1 --> P2 --> P3 --> P4 --> P5 --> P6 --> P7

Phase 0 — Before Any Entity¶

Timing: Now
Cost: $0
Status trigger: Starting point

What to do¶

Kevin and Corey work on MPowerUP under personal GitHub accounts
Any early consulting income flows through Kevin's sole proprietorship (SSN) — acceptable short-term
Focus entirely on building MPowerUP to a demo-able state

Why this comes first¶

You need a working artifact before anything else matters. The Foundation's 501(c)(3) application is stronger with a live open-source project. Grant applications require a concrete demonstration. BNI LLC's first clients need something real to pay for.

The open-source software must exist and be publicly available before BNI LLC begins selling commercial services built on it. This is both an IRS requirement (the Foundation must have genuine public benefit independent of the LLC) and a market reality.

Goals¶

[ ] MPowerUP Phase 1 complete and publicly accessible
[ ] At least one partner organization expressing interest
[ ] Both developers aligned on entity plan

Phase 1 — Form Big Nerd Idea, LLC¶

Timing: Month 1–2
Cost: ~$150 (state filing fee)
Status trigger: Ready to take on paying clients

What to do¶

File Articles of Organization with your home state (~$50–150)
Obtain EIN from IRS — free, online, 10 minutes at irs.gov
Open a business checking account in BNI LLC name using EIN
Update any existing contracts or billing to use LLC name + EIN

Why now¶

Without an LLC, Kevin has personal liability for all business activity and no clean separation between personal and business finances. The LLC is also a prerequisite for the formal sponsorship relationship with the Foundation.

Do not form the Foundation yet — there is nothing to donate and the $400 filing cost is not justified until there is revenue or a clear grant opportunity.

Goals¶

[ ] Articles of Organization filed
[ ] EIN obtained
[ ] Business checking account open
[ ] First contract or client conversation underway

Phase 2 — Open Collective Fiscal Sponsorship¶

Timing: Month 2–4 (can overlap with Phase 1)
Cost: $0 upfront (~5% fee on transactions received)
Status trigger: Any time after Phase 0 artifact exists

What to do¶

Register Big Nerd Idea Foundation as a project on Open Collective
Link to Open Collective Foundation as fiscal host (they hold 501(c)(3) status on your behalf during this phase)
Add Kevin Crump and Corey Zinn as admins
Publish the collective page with BNI Foundation's mission and MPowerUP as the flagship project

Why this matters¶

Open Collective's fiscal host status means BNI Foundation can:

Receive tax-deductible donations immediately — before your own 501(c)(3) is approved
Maintain a transparent public financial ledger (required for IRS application credibility)
Apply for most grants — Open Collective fiscal sponsorship satisfies the majority of grant eligibility requirements
Pay contributors and vendors through the platform

This is the fastest path to having a functional nonprofit without the cost or wait time of a full IRS filing.

Goals¶

[ ] Open Collective project live at opencollective.com/big-nerd-idea
[ ] Mission and project description published
[ ] First grant target identified (see Grant Strategy)

Phase 3 — First Revenue and First Grant Application¶

Timing: Month 3–6
Cost: $0 (revenue-generating phase)
Status trigger: BNI LLC formed, Open Collective live, MPowerUP demo-able

What to do¶

BNI LLC closes first consulting, managed hosting, or support contract ($5K–$20K range)
Donate 15–20% to BNI Foundation via Open Collective — first documented sponsorship transaction
Submit first grant application using Open Collective fiscal host status as nonprofit proof
Both founders likely still have primary income elsewhere — this is evenings-and-weekends stage

First grant targets¶

Funder	Typical grant	Why it fits
Mozilla Technology Fund	$50K–$200K	Strong precedent for P2P privacy tools
Knight Foundation	$25K–$150K	Community infrastructure focus
Protocol Labs	$10K–$100K	Direct alignment with libp2p / P2P tech

Start with Protocol Labs or a smaller regional funder for the first application — faster cycle time and more accessible than Mozilla or Knight at this stage.

Goals¶

[ ] First BNI LLC revenue received
[ ] First sponsorship donation documented
[ ] At least one grant application submitted

Phase 4 — File BNI Foundation Formally¶

Timing: Month 4–8
Cost: ~$400 ($50–100 incorporation + $275 Form 1023-EZ)
Status trigger: Enough financial activity to justify filing; board of 3 identified

What to do¶

Choose incorporation state (home state recommended)
File Articles of Incorporation as a non-profit corporation (~$50–100)
Draft bylaws — board structure, officer roles, conflict-of-interest policy
Form initial board — Kevin Crump, Corey Zinn, one independent member
Obtain EIN for BNI Foundation (separate from BNI LLC EIN)
File IRS Form 1023-EZ: $275 fee

Board at this stage¶

Name	Role
Kevin Crump	President / Executive Director
Corey Zinn	Secretary / Technical Director
[Third member]	Treasurer / At-Large

See BNI Foundation — Board Requirements for full composition rules including spouse and family member positions.

Goals¶

[ ] Articles of Incorporation filed
[ ] Bylaws drafted
[ ] Board of 3 seated
[ ] Form 1023-EZ submitted

Phase 5 — 501(c)(3) Determination Letter¶

Timing: Month 6–12 (2–4 weeks after 1023-EZ submission if eligible)
Cost: $0 (fees already paid in Phase 4)
Status trigger: IRS approves Form 1023-EZ

What to do¶

Receive IRS 501(c)(3) determination letter
Apply to Anthropic nonprofit program at anthropic.com/nonprofit with the letter — expected 40–60% discount on API credits
Apply for vendor nonprofit pricing: GitHub for Nonprofits (free Teams plan), Google for Nonprofits (free Workspace), AWS Nonprofits
Execute formal written sponsorship agreement between BNI LLC and BNI Foundation
Move open-collective.com activity to the Foundation's own accounts now that formal status is confirmed
Apply for first major grants (Mozilla Technology Fund, Knight, McGovern) using your own determination letter

Goals¶

[ ] Determination letter received
[ ] Anthropic nonprofit pricing applied for
[ ] Vendor nonprofit pricing unlocked
[ ] Formal sponsorship agreement executed
[ ] First major grant application submitted

Phase 6 — First Grant Received¶

Timing: Month 12–18
Cost: $0 (grant-funded phase)
Status trigger: First grant award ($10K–$50K range)

What to do¶

Receive first grant funds into BNI Foundation accounts
Foundation can now pay Kevin or Corey a small part-time stipend as a program expense (subject to board approval)
BNI LLC revenue growing from managed services and/or hardware pilot partnerships
Identify and onboard a third contractor or part-time hire if workload justifies it
Seat the full 5-person board if expanding scope or bringing family member onto the board

What changes¶

This is the phase where BNI begins to feel like a real organization rather than a side project. The combination of grant revenue and LLC commercial revenue starts to approach enough for at least one founder to reduce outside work.

Goals¶

[ ] First grant received and restricted funds properly tracked
[ ] At least one founder receiving part-time compensation from Foundation or LLC
[ ] Second grant application in progress
[ ] RlivN or hardware pilot partnership initiated

Phase 7 — Sustainable Operations¶

Timing: Month 18–36
Cost: Funded by grants and LLC revenue
Status trigger: Multiple active grants + growing LLC contracts

What changes¶

One or both founders transition to full-time
First outside hire — likely a part-time grants/program coordinator through the Foundation, or a developer through BNI LLC
Hardware partnership pilot becomes a commercial product (RlivN device bundle or similar)
Board expanded to 5 members for stronger governance and grant credibility
BNI LLC considers S-Corp election for tax efficiency as revenue grows
Claude for Teams or Anthropic Enterprise pricing at nonprofit rates as team grows

Financial picture at this stage¶

Source	Estimated range
BNI Foundation grants (annual)	$50K–$200K
BNI Foundation donations and Open Collective	$5K–$20K
BNI LLC managed services and enterprise contracts	$50K–$150K
BNI LLC hardware/device revenue	$10K–$50K early stage
Total	$115K–$420K

These are planning figures only — actual outcomes depend on grant success rate, sales cycle, and market adoption.

Goals¶

[ ] At least one founder full-time
[ ] First non-founder hire
[ ] Hardware product in market
[ ] 5-person board seated
[ ] Annual Form 990 filed (first required filing after first full fiscal year)

Cost Summary¶

Phase	Action	Cost
Phase 1	Form BNI LLC (Articles of Organization)	~$150
Phase 2	Open Collective setup	$0
Phase 4	Incorporate BNI Foundation	~$100
Phase 4	IRS Form 1023-EZ	$275
Total cash to operational nonprofit		~$525

Everything else is sweat equity. The $525 can be spread across 4–8 months and funded by the first BNI LLC consulting invoice.