A more precise term for those in the know: open source software that also has a liberal license, for some definition of liberal.
Ciro Santilli defines liberal as: "can be commercialized without paying anything back" (but possibly subject to other restrictions).
He therefore does not consider Creative Commons licenses with NC to be FOSS.
For the newbs, the term open source software is good enough, since most open source software is also FOSS.
But when it's not, it's crucial to know.
This model can work well when there is a set of commonly used libraries that some developers often use together, but such that there isn't enough maintenance work for each one individually.
So what people do is to create a group that maintains all those projects, to try and get enough money to survive from the contributions done primarily for each one individually.
Examples:
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