> For the complete documentation index, see [llms.txt](https://policies.recaptime.dev/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://policies.recaptime.dev/staff/expenses-and-reimbursements.md).

# Expenses and Reimbursements Policy

Since Recap Time Squad (and the projects underneat it) runs as a fiscally hosted organization under HCB by Hack Club, funds under our organization and the respective projects (if there's a dedicated HCB organization for it) must be used for expenses that aligns with Hack Club's mission, our open-source work and the non-profit regulations in the United States under the IRS.

## TL;DR

* All expenses must comply with 501(c)(3) regulations and align with either Hack Club's mission or our open-source work.
* Expenses cannot be paid in advance if it is not paid using the virtual team card issued from the HCB dashboard.
* If a vendor requires partial payment for a reservation, a written invoice must be submitted that includes the reservation details and clearly defines a reimbursement policy.
* Due to IRS regulations, HCB may be required to collect tax forms before issuing payment.
* All funds are held in USD. When submitting an expense, the amount can be paid out in your local currency based on the exchange rate, and any applicable currency conversion fees may apply, mainly Wise transfer fees and/or SWIFT intermediary bank fees.

## Things We Can and Cannot Pay For

### Eligible Expenses

In most cases, if it is open source work, it is generally approved. If it is not but aligns with Hack Club's mission, we (and the HCB team by extension) may ask for more context behind the expense or reimbursement request. When we ask for extra details, it's to ensure the expense meets legal and tax requirements.

Generally speaking, you can use our funds held on HCB for:

* Payments to contributors for completed work (via invoice)
* Reimbursements for project-related purchases
* Infrastructure costs (e.g., domain hosting, software subscriptions, servers)
* Travel costs for project-related events
  * Most tech conferences and events around open-source work is eligible here, but for things like CES (Consumer Electronics Show) please let us know first.
* Shipping, duty, and import fees related to your project
  * Please include proof of the item being shipped so we can confirm it’s project-related.

### Ineligible Expenses

Recap Time Squad HQ funds held on HCB cannot be used for the following:

* Personal expenses unrelated to the project (eg: rent, groceries, clothing)
* Non-project related travel or entertainment
* Donations to unrelated causes or organizations
* Work that has not yet been completed (HCB cannot prepay for work)
* Anticipated travel costs (e.g., flights, lodging, or other reservations booked before the travel has occurred)
* Transferring funds to an LLC related to the project
  * While this is Open Source Collective-specific guideline, we also noting this in case we decided to set up a LLC to support the non-profit (the Mozilla way, not the reverse like the OpenAI way).
* Expenses that do not align with Hack Club's mission (eg: unrelated business activities that do not support open source)
* Expenses without a clear connection to the project's open source work
* Giftcards (mainly due to fraud risk)

In case the team card is used for these expenses, you will be required to flag it as a personal transaction from the transaction and reimburse the organization/project back the funds use. If you can't pay back within the next 30 days, please let us know so we can note it but you will be expected to return the funds back as soon as possible (to avoid having trouble with the accountant and auditor).

### Need help with eligibility checks?

**When in doubt, please reach out first before spending to save on headaches later on.** You can ask us in `#TBD` Zulip channel, [`#hcb-org-ops` Discord channel](https://discord.com/channels/1309180322138816583/1311351336767324371) ([`#hcb-ops` for Alumni Society maintainers](https://discord.com/channels/1442799920649207889/1455279425540067449) in the Alumni Society Discord server). Alternatively, you may file a issue in the meta issue tracker on GitLab SaaS (also: Alumni Society) or GitHub (also: Alumni Society) or at the dedicated HCB issue tracker on [YouTrack Cloud](https://youtrack.recaptime.dev/projects/HCB).

## Credits / Prior Art

Portions of this policy were inspired from [Open Source Collective's expense policy](https://docs.oscollective.org/for-hosted-member-projects/spending-money-and-getting-paid/expense-policies-and-limitations), tweaked and adjusted for our setup under a 501(c)(3) legal entity instead of a 501(c)(6) one ([see related Discord thread](https://discord.com/channels/1241017531318276158/1455260321588576428) regarding license/credits at Open Collective/OFi Community Discord server).