alt Hacker News> Well, speaking in the case of the US, this would constitute product development which is well outside the scope of what a 501(c)(3) organization should be doing, which could thereby jeopardize their tax status?
Doesn't this apply only to for-profit products? There's plenty of 501c3's with free "products".
It is not about whether or not it is available for free, at cost, or otherwise, but whether or not the activity has the character of commercial product development. It's what the product is used for, not what price it's set at. A 501(c)(3) directly developing, or funding the development, of commercial software is not engaged in charitable, educational, or other exempt activities.
For reference: This is exactly what happened to the Yorba Foundation, and numerous others since then.[1]
[1] https://www.stradley.com/business-vantage-point-blog/irs-con...