Mastodon goes nonprofit and raises $5M to expand its platform
- Mastodon is shifting to a European nonprofit ownership model to avoid individual control.
- The platform aims for an operating budget of $5.1 million to support its expansion.
- This transition reflects a growing demand for independent social media networks among users.
In January 2025, Mastodon, a social media platform, announced its decision to transition to a wholly owned European nonprofit organization over the next six months. This decision arises from the platform's desire to ensure that it remains free from the influence of any single wealthy individual, a situation that has led to criticism of platforms like Twitter under Elon Musk for their handling of content moderation and policies. Mastodon's founder, Eugen Rochko, initially started the platform to uphold decentralized control, making it clear that its primary goal is to provide users with more autonomy over their online experiences. As Mastodon grows, reaching 1.5 million active monthly users in 2023, it becomes increasingly crucial to evolve to maintain its envisioned independence. To support this transition, Mastodon is looking to secure an annual operating budget of approximately $5.1 million. This funding will not only help with the transition to a nonprofit model but also aid in further developments, including a privacy-respecting search tool designed for the Fediverse, which encompasses various independent social media networks connected to Mastodon. The platform is making efforts to establish itself more firmly in Europe, ensuring compliance with regional regulations while setting up a US-based nonprofit entity as a fundraising hub. This is a strategic move, especially considering the ongoing scrutiny and regulation faced by larger tech companies in Europe. Mastodon aims to create and promote open, safe, and responsible digital spaces that prioritize user control, free from the influence of advertising and data exploitation. Ultimately, this shift to nonprofit ownership reflects Mastodon's commitment to cultivating authentic, constructive online communities and signals a broader expectation that users are increasingly seeking platforms that share their values and offer alternatives to mainstream social media, which often prioritize profit over user experience. As Mastodon embarks on this new chapter, its success will depend heavily on the financial support of its user community and its ability to navigate the complex landscape of social media governance in the current digital age.