The e-mail posted somewhere in the comments, assuming it is legit, makes it clear that FLOSS Fund requires certain paperwork for tax reasons to the benefit of the receiver. Apparently the Pocketbase developer is receiving the money personally, which means it is income and will be taxed. Apparently, again, it would also be taxed in India (the seat of FLOSS Fund) and the paperwork would allow to avoid double taxation.

This appears much more reasonable to me than the hoops I have to jump through to declare my taxes as an US expatriate and avoid double taxation with my country of residence.