How to Donate Your Internal Tool to an Open Source Foundation: Lessons from Block's Goose

Introduction

Internal tools can become powerful external services. Just as Amazon turned its internal cloud infrastructure into AWS, Block transformed its coding agent Goose into an open-source project. But releasing code under a permissive license is only the first step. Block soon realized that without transparent governance and full trademark transfer, enterprise adoption would stall. Their solution? Donate Goose to the Agentic AI Foundation (AAIF) under the Linux Foundation. This guide walks you through the steps Block took, from initial open-sourcing to foundation donation, so you can apply the same principles to your own project.

What You Need

• An internal tool with proven value inside your organization (e.g., Goose had 12,000+ users at Block).
• Early community traction after open-sourcing (shows demand for governance).
• Executive buy-in to relinquish control of trademarks and decision-making.
• A compatible foundation (e.g., Linux Foundation, Apache, etc.) that aligns with your project's goals.
• Strategic partners who share your vision (Block partnered with Anthropic, MCP team, and Agents.MD).
• Legal and open-source counsel to handle trademark transfer and licensing.

Step-by-Step Guide

Step 1: Open-Source Your Tool with a Permissive License

Begin by releasing your internal tool to the public under a permissive license like Apache 2.0 or MIT. Block did this with Goose, allowing rapid adoption and community contributions. Make sure you have clear documentation, a contribution guide, and a code of conduct. This step builds trust and attracts users who will later advocate for better governance.

Step 2: Monitor Adoption and Gather Feedback

After open-sourcing, track metrics like downloads, stars, pull requests, and community forum activity. Block saw early headwinds: users wanted transparency but were concerned that Block still owned the trademarks. Listen to these signals. Conduct surveys or have conversations at developer events (as Block did with the MCP developer event). Identify the biggest blockers to enterprise adoption.

Step 3: Recognize the Need for Neutral Governance

In Block’s case, the main issue was lack of transparent governance. Even with an open-source codebase, if a single company holds the trademarks, potential adopters fear sudden changes in direction or licensing. Acknowledge that true open source requires a neutral home. Document these concerns and build a case for donating to a foundation.

Step 4: Evaluate Foundation Options

Research foundations that fit your project’s scope. Block considered various options before choosing the Linux Foundation. Key factors: governance model, cost, trademark handling, and alignment with your project’s ecosystem. Speak with other foundation-hosted projects or attend foundation events. Block connected with the MCP team (Model Context Protocol from Anthropic) and the Agents.MD team to find common ground.

Step 5: Form Strategic Partnerships

Donating a single tool to a foundation can be easier if you ally with complementary projects. Block, the MCP team, and Agents.MD decided to together create a new foundation—the Agentic AI Foundation (AAIF)—rather than joining separate entities. This approach was partially due to expediency; a group of tools launched together under one umbrella gains credibility and shared resources. Reach out to projects that share your vision and propose a joint foundation.

Step 6: Negotiate Trademark Transfer and Governance Terms

Once you’ve selected a foundation, negotiate the legal details. Block transferred ownership of the Goose trademark to AAIF. Ensure the foundation’s governance policies allow for community decision-making, transparent roadmaps, and vendor-neutrality. Work with legal counsel to draft agreements that protect your original company from liability while giving the foundation full control.

Step 7: Launch the Foundation and Announce the Transition

With all agreements in place, launch the foundation publicly. AAIF was announced with Goose, MCP, and Agents.MD as its initial projects. Prepare a press release, blog posts, and a webinar to explain the move. Emphasize the benefits: improved governance, faster innovation, and greater enterprise trust. Block’s story shows that a well-communicated donation can accelerate adoption and attract corporate sponsors.

Step 8: Transition Ownership and Community Roles

Finally, hand over the project’s repository, website domain, and trademark registration to the foundation. Establish a technical steering committee with representatives from your original team, the foundation, and the community. Continue to contribute code and support, but now as a community member rather than the sole owner—just as Block’s former head of open source, Manik Surtani, became CTO of AAIF.

Tips for a Smooth Donation

• Start early: Governance conversations are complex. Give yourself 3–6 months from the decision to launch.
• Communicate internally: Ensure your team understands why you’re giving up control. Frame it as a growth opportunity for the project.
• Choose partners wisely: The AAIF success relied on strong, pre-existing relationships with Anthropic and the MCP community.
• Be transparent about headwinds: Like Block, admit where your single-vendor governance creates friction. It builds trust with the community.
• Leverage existing foundations: Starting a new foundation is hard. Joining an established one (like the Linux Foundation) gives instant credibility and support.
• Keep the momentum: After donation, continue active development and marketing to show that the project is thriving under neutral leadership.