Why is WordPress.org Not Part of the Nonprofit?

I just watched the YouTube interview with Matt Mullenweg and Theo from t3.gg, where Matt explained that WordPress.org couldn't be part of the WordPress Foundation (a 501(c)(3) nonprofit) due to IRS restrictions. He mentioned that since WordPress.org benefits private companies, like hosting providers and Automattic, the IRS wouldn’t allow it under nonprofit regulations.

That got me thinking: is this really the case?

The IRS does have rules against nonprofits benefiting private businesses, but there are several open-source foundations that operate infrastructure for software benefiting both public users and private companies, all while maintaining their 501(c)(3) status. These organizations host software, run distribution infrastructure, and foster open-source communities—similar to what WordPress.org does with plugin updates and themes. Examples include:

• The Apache Software Foundation (501(c)(3)): Hosts numerous open-source projects and provides infrastructure for downloading software.
• The Python Software Foundation (501(c)(3)): Operates PyPI, a platform similar to WordPress.org for distributing Python packages.
• The Linux Foundation (501(c)(6)): Supports the Linux ecosystem and other open-source projects, benefiting both public users and private businesses.

These examples demonstrate that nonprofits can operate platforms with both public and private benefits, while complying with IRS rules.

While Matt’s explanation about IRS restrictions might be partially true, I think the separation could also be about practical control over WordPress.org’s infrastructure, allowing him to make decisions that may align with commercial interests, rather than having to adhere to nonprofit governance and transparency.

If the concern really is about the IRS, there are other 501(c) options besides 501(c)(3):

• 501(c)(6) (like the Linux Foundation): Business leagues can engage in activities that benefit both public and private interests, offering more flexibility while still supporting open-source projects.
• 501(c)(4): Social welfare organizations can benefit the public while still having some indirect private benefits.

Even if none of these options worked, WordPress.org could be structured as a for-profit subsidiary of the WordPress Foundation. This is a common arrangement where a nonprofit has a for-profit arm to handle commercial activities, ensuring the nonprofit remains compliant while maintaining control. In this same interview, Matt himself admitted that the Foundation has no operations (except for the for-profit subsidiary that runs WordCamps), which seems like a missed opportunity for better governance.

There really seems to be no strong reason why Matt should personally own WordPress.org directly. While having WordPress.org as a subsidiary of a foundation with only 3 directors isn’t perfect, it would still be an improvement over the current arrangement, which concentrates significant control in one person and clearly does not benefit the community.