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Business Operating Model

Entity Overview

Big Nerd Idea, LLC                  Big Nerd Idea Foundation
──────────────────────────────      ──────────────────────────────
For-profit (bignerdidea.com)        Non-profit (forming 501(c)(3)) (bignerdidea.org)
Enterprise contracts & services     Open-source SaaS, frameworks, architecture
Funds / sponsors BNI Foundation     Owns and governs open-source IP
Kevin Crump — sole owner            Kevin Crump + Corey Zinn + community board

The model: BNI Foundation builds and maintains open-source software as a public good. Big Nerd Idea, LLC provides enterprise services and support contracts on top of that software, and directs a portion of revenue back to BNI Foundation as a sponsorship/donation. This is the Mozilla Foundation / Mozilla Corporation model applied at startup scale.

Immediate Actions (Before BNI is Filed)

1. Form Big Nerd Idea, LLC

Why this matters: The for-profit entity needs its own legal identity before it can formally sponsor or contract with BNI Foundation. Without an LLC, there is personal liability for all business activity and no clean separation between personal and business finances.

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

Recommended state: Your home state unless there's a specific reason to file in Delaware/Wyoming. For a small LLC with one owner, home state is simpler and cheaper to maintain.

2. Establish BNI Foundation on Open Collective (Fiscal Sponsor — Interim)

While BNI Foundation's 501(c)(3) application is in process (typically 6–12 months), Open Collective's fiscal sponsorship lets BNI Foundation: - Receive tax-deductible donations immediately - Pay contributors and vendors transparently - Build a public financial track record for the IRS application - ~3% platform fee on transactions

Steps: - [ ] Create collective at opencollective.com/big-nerd-idea - [ ] Link to Open Collective Foundation as fiscal host (they handle 501(c)(3) status for you during this phase) - [ ] Add Kevin Crump and Corey Zinn as admins

BNI Foundation Non-Profit Formation

Structure

Type: 501(c)(3) public charity (not a private foundation) Mission statement: "Big Nerd Idea Foundation advances the public good by developing free, open-source software, hardware integration frameworks, architecture guidelines, and developer tooling — providing the open ecosystem that empowers builders, partner organizations, and the communities they serve."

Formation Steps

  1. Choose a state to incorporate in — typically your home state or Delaware for non-profits
  2. File Articles of Incorporation as a non-profit corporation (~$50–100 filing fee)
  3. Draft bylaws — board structure, officer roles, conflict-of-interest policy (required for 1023)
  4. Form initial board — IRS requires minimum 3 board members; Kevin + Corey + 1 independent
  5. Obtain EIN for BNI Foundation (separate from BNI LLC EIN)
  6. File IRS Form 1023-EZ (if projected revenue < $50K/yr in first 3 years) or Form 1023 (full)
  7. 1023-EZ: ~$275 fee, typically approved in 2–4 weeks
  8. 1023 full: ~$600 fee, can take 3–12 months
  9. Receive determination letter — this is the document that unlocks non-profit pricing from vendors including Anthropic

Timeline: From filing to 501(c)(3) letter: 1–3 months (EZ) or 6–12 months (full form).

Board Composition (Initial)

  • Kevin Crump — President / Executive Director
  • Corey Zinn — Secretary / Technical Director
  • [Third independent member needed] — Treasurer or at-large

Revenue Model

Open Core + Enterprise Services

BNI Foundation (non-profit)         Big Nerd Idea, LLC (for-profit)
────────────────────────────        ─────────────────────────────
Develops open-source software       Delivers commercial products:
Publishes hardware frameworks       • Services (managed hosting, consulting, support SLAs)
Issues architecture guidelines      • Apps (mobile, web, SaaS platforms)
Maintains developer APIs & docs     • Smart Devices (IoT products, smart home integrations)
Issues open licenses                • Hardware partnerships with device manufacturers
Receives grants & donations
                          ←─────── Sponsorship donations (~15-20% of BNI LLC revenue)
                                    • Annual sponsorship agreement

License strategy: - Core libraries and frameworks: MIT or Apache 2.0 (maximum adoption) - SaaS platforms (e.g. hosted MPowerUP): AGPL (requires open source if hosted) - Hardware integration specs and reference architectures: Apache 2.0 (patent grant protects hardware partners) - Firmware and embedded software: MIT or Apache 2.0 (broadest device adoption) - Enterprise add-ons and Smart Device products: Commercial license via BNI LLC

Revenue Streams for BNI LLC

  1. Enterprise contracts — paid support, SLAs, custom deployments of BNI Foundation open source
  2. Managed hosting — run BNI software for organizations that can't self-host
  3. Consulting — architecture, implementation, training on BNI frameworks
  4. White-label apps — custom-branded versions of MPowerUP, RlivN, and other BNI platforms for partner orgs
  5. Smart device products — IoT and smart home devices built on BNI Foundation hardware frameworks (e.g. RlivN companion tablet setup, in-home care device bundles)
  6. Hardware partnerships — revenue-sharing and integration agreements with device manufacturers who build on BNI open specs

Revenue Streams for BNI Foundation

  1. Grants — see Grant Opportunities below
  2. BNI LLC sponsorship — contractual annual donation from BNI LLC
  3. Open Collective donations — individual and corporate supporters
  4. Restricted grants — project-specific funding (e.g. "MPowerUP Phase 2 deployment")

Grant Opportunities

All of the following fund open-source social-good technology. Apply after BNI Foundation's 501(c)(3) letter (or via fiscal sponsor on Open Collective before that).

Funder Focus Typical Grant Notes
Mozilla Technology Fund Open internet, privacy, security $50K–$200K Annual cycle, highly competitive
Ford Foundation Social justice, digital equity $100K–$500K Multi-year grants available
Open Society Foundations Civil society, democracy $50K–$300K Strong fit for vulnerable populations
Knight Foundation Journalism, community, technology $25K–$150K Good fit for MPowerUP
Protocol Labs Decentralized web, IPFS/libp2p $10K–$100K Direct alignment with Phase 4 tech
Chan Zuckerberg Initiative Health, education, community $50K–$500K Broad mandate
Patrick J. McGovern Foundation AI for good, social impact $100K–$1M Strong AI + social good focus

First application target: Mozilla Technology Fund or Knight Foundation — both have strong precedent funding peer-to-peer privacy tools for underserved communities.

Anthropic Path

Phase Status Claude Access Cost
Now Individual accounts Claude Pro/Max per person ~$100–200/person/mo
BNI on Open Collective Informal non-profit Individual (same) Same
501(c)(3) letter received Official non-profit Apply to Anthropic non-profit program ~40–60% discount expected
Scale (5+ devs) Established Claude for Teams or Enterprise via non-profit pricing TBD

Action: Once BNI Foundation's 501(c)(3) determination letter is received, apply at anthropic.com/nonprofit or contact [email protected] with the letter. Anthropic has a documented non-profit research program.

GitHub Organisation

Create: big-nerd-idea GitHub org (free for open source public repos)

Steps: - [ ] Kevin creates org at github.com/organizations/new - [ ] Invites Corey as Owner or Member - [ ] Transfers or forks kevinwcrump/MPowerUp → big-nerd-idea/mpowerup - Kevin keeps personal fork active if preferred - [ ] Sets org-level settings: require PR reviews on main, branch protection

Repo visibility: All BNI Foundation repos public by default (open source mission). BNI LLC-specific enterprise code (if any) stays in a private BNI LLC org or Kevin's personal account.

Phase Timeline

Phase Trigger Key Actions
Phase 1 — Informal (Now) Today Form Big Nerd Idea, LLC, get EIN. Open Collective fiscal sponsorship. Both devs collaborate via GitHub.
Phase 2 — Filing (~1 mo) BNI LLC formed File BNI Foundation Articles of Incorporation. Draft bylaws. File IRS 1023-EZ.
Phase 3 — Pending (~3–6 mo) 1023-EZ filed BNI Foundation operational under fiscal sponsorship. Apply for first grant. Create big-nerd-idea GitHub org.
Phase 4 — Official (~6–12 mo) 501(c)(3) letter Apply for Anthropic non-profit pricing. Move repos to org. Formal sponsorship agreement between BNI LLC and BNI Foundation.
Phase 5 — Scale (12+ mo) First grant received Hire or contract additional contributors. Claude Teams. Formal board operations.