Editing to avoid confusion
Do not confuse Open Collective Foundation with Open Source Collective: https://opencollective.com/opensource/updates/regarding-the-announcement-to-dissolve-open-collective-foundation
This is even more confusing because the org behind Open Collective (opencollective.com) is called " Open Source Collective" whereas the org behind Open Source Collective (oscollective.org) is called Open Collective Foundation.
I believe the author here is confused as well
EDIT: I'm even more confused. Links from oscollective.org point back to opencollective.com. 😵💫
So like, where do they lose money?
Somehow it seems that the 501(c)(6) is more profitable than the 501(c)(3), but I dont understand why.
Profitability might not be the issue, neither are supposed to function solely to make a profit. From the linked blog post, referencing an email, it is stated that its costing more than the revenue can support.
From a general internet search:
c(3)'s can't engage too much (or at all) in legislative stuff but a c(6) can
c(3)'s are supposed to do things to help a group outside of itself while c(6)'s are supposed to exist to support their members
c(6)'s aren't required to report personal information of a person/entity making a donation to the IRS or public