Hi Stacy, I can't believe it--I just noticed your comment. So sorry I haven't responded until now. I got married in June and things got progressively busier after that (strange, I thought it would be the other way around). Thanks for the info and advice, and if you have another event, I would love to attend!
Best,
Olivia
Hi Stacey: I am currently wrestling with the merciless and vigorous flu which has not let up one bit. I think I am in a relapse phase. This strain of flu is particularly disconcerting because I normally bounce back from flus and colds within a week. It has been two weeks now and I feel worse than day 1. I am delighted to see you forging forward, continually trying to engage women at TWHP and remain positive. There is so much negativity and hopelessness that abounds these days and your continual positive encouragement is heartwarming. How is your Nonprofit coming along? I pray all is well but always know I am here if you need me. XO Warmest Regards, Elizabeth
HI Stacy! It is refershing to see your lovely face again. Thank you for thinking of me. I am doing great. The cancer is still in remission and I am loving life! Anything new with you?
Hi Stacey: Yes--perhaps I am a glutton for punishment--LOL I dont know. I cannot believe for the life of me--why the heck TWHP folks do not utilize, capitilize and move forward with this--my goodness gracious some organizations would be delighted to have this database of incredible women. I started this group because I truly do want to know what is out there and start practicing what I preach by connecting women together. I understand this is not my responsibility but maybe I am stubborn--I dont know--I was so impacted by Women Rule! that I would like to see this movement of women blossom not fade away. I am fine. I have decided to do all I can to take care of my health, establish healthy boundaries and do what I love and what I believed my life is purposed to do--I may have one day, one week and if God is willing many decades before I am called home--but I am going to live this life fully. Love you bunches! Elizabeth
Hey Stacy! Thanks for checking in on me I really appreciate it. I am still recuperating and doing good, working my way to better and next stop is best. I am trying to get myself back in to the swing of things by August at the latest September of this year. This has been a journey, but every day I wake up I know that HE is not done with me yet!! And that is a blessing in itself.
Thanks, Stacy, for the welcome. I'm very excited about TWHP and look forward to contributing. I'll keep an eye out for your invitation. Enjoy your holiday weekend.
Hi Stacy! Thank you for thinking of me. I haven't been on the site for awhile but I am doing great! I had a clear PET scan and the cancer is still in remission. I am enjoying life !
Precious TWHP Sister:
Come back, come out where ever you are,
The White House Project is a forum for women leaders and stars.
There is plenty of social media but none quite like this,
A special place for women to edify, protest, lament or share in bliss.
Thinking of you all especially during my prayers today.
So I am taking a proactive moment to send blessings your way,
Life zips by quickly and exceedingly fast,
I am not quite sure if I will be here tomorrow or if my ailing heart will last.
I don’t want another moment to pass without saying to you,
How appreciative I am --thank you for being who you are--- and for all you do!
You are incredible women of courageous and noble deeds,
You have nurtured many souls and planted invaluable life-changing seeds.
May your life be anointed with abundance and happiness,
I am sending you all my love, special encouragement and my very best.
Always & Forever
Elizabeth Asahi Sato, Women Rule 2008!
Hello Stacy, It was great to get your note I am sorry it took me so long to respond. I have been so busy at work that in the evening I don't want to spend any more time on the computer but I would love to reunite with the group on LinkedIn. Just let me know when the site is up and running. I did enjoy working with all of you and hope that by reconnecting it will reenergize me as well. I have been thinking a lot ab
Hi Stacy: Oops I posted the info in your comment box and I meant to send a note. I will post it there too so you can delete this long comment. LOL OK OK I am getting old.
Some of the places to inquire about fiscal sponsorship services are: a local technical assistance provider such as the members of the California Management Assistance Partnership (C-MAP), a local community foundation, legal firms that specialize in nonprofits, prospective funders, the internet under "fiscal sponsorship".
The most complete book on the subject is, "Fiscal Sponsorship: Six Ways To Do It Right," available for $14.95 + $3.50 shipping/handling (California residents add sales tax) from San Francisco Study Center, 415-626-1650; http://www.studycenter.org. or from http://www.amazon.com. One fiscal sponsor that publishes its guidelines and application online is the Boston Film & Video Foundation: http://www.bfvf.org/fiscal.htm.
What are the benefits of using a fiscal sponsor?
Groups may decide that using a fiscal sponsor makes sense for a variety of reasons;
Speed - It normally takes four to six months from the time an application for tax exemption is filed with the IRS to receive notice that tax-exempt status has been granted, and that is IF the IRS has no questions about information contained in the application. Theoretically one could make arrangements to be fiscally sponsored in a day or less, although a couple of weeks is more typical.
Efficiency - Especially for small groups, having someone else provide most of your administrative, or infrastructure functions may be cheaper than doing it yourself. This is especially true if you are a group that is only expecting to be in existence for a short period of time.
Convenience - Most groups, start-up or otherwise, want to focus their energy on their charitable activities. Having to create and maintain an infrastructure can be distracting from the mission of the group.
Necessity - There are some funding sources that will not fund brand-new groups. One way around this restriction is to become part of a group that has some history.
What are the disadvantages?
As a sponsored project of an already existing 501(c)(3), your "parent organization" is legally responsible for everything you do. This includes the responsibility to comply with the terms of the grants you have been awarded and how you operate. If you and your sponsor disagree, you may be forced to "do it their way".
Some foundations have policies that do not permit them to make grants through fiscal sponsors.
What are some of the services typically provided by fiscal sponsors?
There is really no such thing as a "typical" bundle of services provided by a sponsor. The services available from sponsors vary from nothing to those listed below that are often provided by a professional sponsor.
Financial
Federal, state and local tax & informational returns
Receipt and acknowledgment of tax-deductible donations and grants
Payroll tax remittance and filings
Monthly financial statements
Financial record-keeping
Independent Audit
Check processing and issuance for expenses, I-9s, 1099s
Insurance
Directors' & Officers Insurance
Volunteer lnsurance
General Liability
Umbrella
Commercial Automobile
Human Resources Administration
Payroll processing, W-2s
Personnel policies in compliance with federal, state and local laws
Comprehensive benefits package
Benefits administration, 5500
Technical assistance on personnel issues
General Administration
Bulk rate postal permit
Resale permit
Sales tax reports
Legal advice
Grant progress reports
If my group is operating under a fiscal sponsor, and we’ve decided to become an independent nonprofit, what are the steps we should take?
If you have decided to separate from your current sponsor and don't want to affiliate with another the process to become independent begins with informing your current sponsor of your decision. Most often you will next create public benefit corporation that will file applications with both the IRS and state taxing authority asking to be exempt from income tax. From the time the applications are submitted it usually takes four to six months to receive your determination letters (notice that exemption has been granted). When you receive your notice it is retroactive to the date of your original application. While you are waiting for you letter you will need to do all those things that any new business does (open bank accounts, hire employees obtain insurance, etc.). The final step is arranging to have your sponsor transfer the project's assets and liabilities to the new nonprofit.
When a project sets up a relationship where it voluntarily gives up some control ever its activities, it is always a good idea to have a written contract. Often a sponsor will have a standard contract that it uses with new projects. A good contract will have a procedure outlined in it as to how to terminate the relationship if for some reason either side becomes uncomfortable. Read the contract carefully and don't be afraid to ask the sponsor questions. The sponsorship agreement is a legally enforceable document so unless the group has experience in this area, a review of the document by an attorney paid to represent your interests is a good idea. Make sure you know what you are getting yourself into.
Sample: Fiscal Sponsorship Grant Agreement
01-17-2006
FlSCAL SPONSORSHIP GRANT AGREEMENT
On _______________, 1999, ___________________ ("Grantor") decided that financial support of the following purposes __________________________________ ("the project"), more particularly described in a proposal dated _____________________________,1999 ("the proposal"), from _____________________________________("Grantee") will further Grantors tax-exempt purposes under Section 501(cX3) of the Internal Revenue Code ("lRC"). With regard to the selection of Grantee or any other beneficiary to conduct the project, Grantor has exercised and shall retain full discretion and control over the selection process, acting completely independently of Grantee or any funding source. Grantor has created a restricted fund designated for the project and has decided to grant all amounts that it may receive and deposit to that fund (less any administrative charge set forth below), to Grantee, subject to the following terms and conditions:
1. Grantee's separate legal existence, for all purposes including tax reporting, is established by the following: [choose one]
Grantee is a ___________________nonprofit corporation which is, and shall be throughout the duration of this Agreement, organized and operated for tax-exempt purposes described in IRC Section 501(c)(3). Grantee has applied to the Internal Revenue Service for recognition of its tax-exempt status and shall keep Grantor informed on the progress of its application. OR
Grantee has provided Grantor with a completed and filed IRS Form SS-4, along with any other registration or governing documents, showing Grantee's separate existence as an unincorporated association. OR
Grantee is an individual person, acting as a sole proprietor. OR Grantee is a partnership comprised of _______________________.
2. Grantee shall use the grant solely for the project described in the proposal, and Grantee shall repay to Grantor any portion of the amount granted which is not used for that project. Any changes in the purposes for which grant funds are spent must be approved in writing by Grantor before implementation. Grantor retains the right, if Grantee materially breaches this Agreement, to withhold, withdraw, or demand immediate return of Grant funds, and to spend such finds so as to accomplish the purposes of the project as nearly as possible within Grantor's sole judgment. Consistent with Interpretation No. 42 of Statement No. 116 issued by the Financial Accounting Standards Board, Grantor retains the unilateral power, without approval from any funding source, from Grantee, or from any other interested party, to redirect use of grant funds away from Grantee to another beneficiary capable of fulfilling the purpose. of the project. Any tangible or intangible property, including copyrights, obtained from third parties or created by Grantee as part of this project shall remain the property of Grantee. The amount and date of each disbursernent of grant funds to Grantee shall be within the discretion of Grantor.
3. Grantee may solicit gifts, contributions, and grants to Grantor, earmarked for the purposes of the project. Grantee's choice of funding sources to be approached, and the text of Grantee's fundraising materials, are subject to Grantor's prior written approval. All grant agreements, pledges, or other commitments with funding sources to support this project shall be executed by Grantor. The cost of any reports or other compliance measures required by such funding sources shall be borne by Grantee. Grantor shall be responsible for the processing, acknowledgment, and deposit in the restricted fund of all monies received for the project, which shall be reported as the income of Grantor for both tax purposes and for purposes of Grantor's financial statements.
4. Grantee assumes the risk that any funding source may exercise the discretion to not grant or not appropriate funds to Grantor for support of the project. Any amount advanced by Grantor to Grantee, with the expectation that a pending grant request will be approved by a funding source, shall be treated as an obligation to be repaid by Grantee to Grantor, either from monies deposited in the restricted fund or from Grantee's assets, upon demand by Grantor. Regarding any funds awarded to Grantor by the City and County of San Francisco ("City") for support of the project, the parties agree as follows: Grantor's rights under this Agreement may be assigned to City without the prior consent of Grantee. This Agreement shall incorporate all the applicable terms of any Grant Agreement executed between Grantor and City, including but not limited to the City's audit and inspection rights. Grantee shall be listed as a "permitted subcontractor" under any such City Grant Agreement.
5. An administrative charge of ________ percent ( _____ %) of all amounts deposited to the restricted fund shall be transferred to Grantor's general fund to defray Grantor's costs of administering the restricted fund and this grant. In addition, any interest earned on the restricted fund shall be retained in Grantor's general fund.
6. Grantor shall not be responsible for the community programs, public information work, fundraising events, accounts payable and receivable, negotiation of leases and contracts, insurance, day-to-day disbursement of project funds, or other matters related to activities conducted by Grantee. No one working on the project shall be an employee of or independent contractor with Grantor. Grantee shall assume full and complete responsibility for all liabilities to third parties incurred in connection with the project including but not limited to any and all claims whether asserted or unasserted while this Agreement is in effect. With regard to the selection of any subgrantees to carry out the purposes of this grant, the Grantee retains full discretion and control over the selection process, acting completely independently of Grantor. There is no agreement, written or oral by which Grantor may cause the Grantee to choose any particular subgrantee.
7. Nothing in this Agreement shall constitute the naming of Grantee as an agent or legal representative of Grantor for any purpose whatsoever except as specifically and to the extent set forth herein. This Agreement shall not be deemed to create any relationship of agency, partnership, or joint venture between the parties hereto, and Grantee shall make no such representation to anyone.
8. Grantee shall submit a full and complete report to Grantor as of the end of Grantee's annual accounting period within which any portion of this grant is received or spent. The initial report shall be submitted by Grantee no later than sixty (60) days after the end of such period. The report shall describe the charitable programs conducted by the Grantee with the aid of this grant and the expenditures made with grant funds and shall report on the Grantee's compliance with the terms of this grant.
9. This grant is not earmarked to be used in any attempt to influence legislation within the meaning of Internal Revenue Code Section 501(c)(3). No agreement, oral or written, to that effect has been made between Grantor and Grantee.
10. Grantee shall not use any portion of the funds granted herein to participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office, to induce or encourage violations of law or public policy, to cause any private inurement or improper private benefit to occur, nor to take any other action inconsistent with Section 501(c)(3) of the Internal Revenue Code.
11. Grantee shall notify Grantor immediately of any change in (a) Grantee's legal or tax status, or (b) Grantee's executive staff or key staff responsible for achieving the grant purposes.
12. Grantee hereby irrevocably and unconditionally agrees, to the fullest extent permitted by law, to defend, indemnify and hold harmless Grantor, its officers, directors, trustees, employees and agents, from and against any and all claims, liabilities, losses and expenses (including reasonable attorneys' fees) directly, indirectly, wholly or partially arising from or in connection with any act or omission of Grantee, its employees or agents, in applying for or accepting the grant, in expending or applying the funds furnished pursuant to the grant or in carrying out the program or project to be funded or financed by the grant, except to the extent that such claims, liabilities, losses or expenses arise from or in connection with any act or omission of Grantor, its officers, directors, trustees, employees or agents.
13. Either Grantor or Grantee may terminate this Agreement on thirty (30) days' written notice to the other party, so long as another nonprofit corporation which is tax exempt under IRC Section 501(c)(3), and is not classified as private foundation under Section 509(a) ("a Successor"), is willing and able to sponsor the project. The balance of assets in Grantor's restricted fund earmarked for the project shall be transferred to the Successor at the end of the notice period or sooner if all parties so agree. Grantee shall be eligible to be a Successor itself so long as Grantee has received, no later than the end of the notice period, a determination letter from the Internal Revenue Service indicating that Grantee meets the qualifications for a Successor stated above.
14. In the event of any controversy, claim, or dispute between the parties arising out of or related to this Agreement, or the alleged breach thereof, the prevailing party shall, in addition to any other relief, be entitled to recover its reasonable attorneys' fees and costs of sustaining its position.
15. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to agreements made and to be enforced entirely within such State.
16. This Agreement shall supersede any prior oral or written understandings or communications between the parties and constitutes the entire agreement of the parties with respect to the subject matter hereof: This Agreement may not be amended or modified, except in a writing signed by both parties hereto.
IN WITNESS WHEREOF, the parties have executed this Fiscal Sponsorship Grant Agreement effective on the ______________ day of _________________ , 199_.
Accounts Payable
Acceptable invoices received by end of business on any Monday will be paid and mailed by end of business on the following Friday. "Acceptable invoices" must be original, approved, coded documents (small receipts to be mounted on 8.5 x 11 paper). It will be the responsibility of each project to submit a completed IRS Form W-9 for each new vendor.
Cash Advances
Under no circumstances does FS advance money to projects. Deposited funds must be cleared by the bank prior to any requested draw, which may take up to two weeks.
Employees
FS does not allow projects to pay individuals who satisfy the IRS definition of employees as contractors. FS management is available to discuss employee vs. contractor classification issues with projects.
Payroll
ANY request to change a payroll record (pay rate, termination, regularly scheduled hours) must be communicated to FS management via an employee action sheet at least five business days prior to the effective date of the change. In order to receive a paycheck, an employee must have submitted a completed; INS Form I-9, IRS Form W-4, California Development Department Form DE-4 (if applicable), signed acknowledgment of receipt of a personnel policies manual, and an employee action form at least five business days prior to payday. FS management will provide action forms, file all payroll tax returns, and IRS Form W-2's. The head of each project will need to sign a statement agreeing that their project will not deviate from the personnel policies manual.
Bonuses are a very regulated benefit for tax-exempt organizations in California. In fact, the payment of discretionary bonuses is expressly prohibited. FS management is available to discuss incentive compensation arrangements with projects to help avoid conflicts with regulatory agencies.
Benefits
No project can offer or deny benefits to its employees which differ from the personnel policies manual.
Job Descriptions
Projects are asked to develop and maintain job descriptions for each employee.
Grants, Awards, and Scholarships Made
For any grants, awards, or scholarships made by a project, FS management requires a copy of the signed grant agreement along with a completed check request form. FS's Executive Director's signature is required for amounts over $5,000. If the grant is made to an organization that is not a 501 (c) (3) charity that FS currently lists in its database, additional paperwork will be required. Forms and procedures are subject to the Executive Director's review.
Grants Received
FS's Executive Director must co-sign all original grant agreements and be copied at least one week in advance on all progress and final report submissions. Grants involving government or public agency monies have very heavy reporting and auditing requirements that a project must discuss in advance of acceptance with the Executive Director.
Donations
FS will accept, process, and acknowledge contributions to each project. This includes issuing receipts for tax deductions. Donations should be made payable to "XXX, a project of FS".
It is not the FS accounting staff's responsibility to meet with a fund's donors and walk them through paperwork. FS management will work with funds to educate them on the necessary forms to liquidate a noncash gift. Donations over $250.00 will be individually receipted. Stock gifts can only be made through FS's designated broker.
Credit Accounts and Other Liabilities
Project Directors may not incur debts or liabilities beyond the project's ability to pay; individual Project Directors are personally liable for any excess. A project's ability to pay is measured strictly by its cash balances, without including anticipated grants or contributions.
Fundraising Activities
Fundraising activities are very labor intensive to administer. FS management requires at least one month's notice of any fundraising events. A copy of all mailings and solicitations must be approved by FS management in advance of mailing or other distribution. The project must complete a Fundraising Checklist form prior to each event. Please remember, other than bingo, any fundraising device involving an element of chance (ex. raffles) are a misdemeanor in California. FS management is available to answer any questions a project may have regarding fundraising activities.
Volunteers
The use of volunteers exposes FS to additional liability. ALL volunteers who provide services to, or perform services for, a project without compensation for their time must sign the standard volunteer indemnification and release form. (Reimbursement of expenses does not constitute compensation for time spent.)
Financial Statements
FS management will provide a statement of monthly activity and a detailed trial balance within 30 days of each month end. Any corrections to the project's accounts must be requested within 30 days after receipt of that statement.
Bank Accounts
No project shall maintain any bank account other than those maintained on its behalf by FS.
Multiple Funds
FS has the ability to set-up cost centers within a fund. FS also has the ability to set-up multiple funds for a project. In situations where projects need multiple funds on the general ledger, FS management is available to advise on inter-fund transfers to help compliance with charitable trust rules.
Advisory Board
Each project will need to maintain a current listing of the names, addresses, and phone numbers of all members of a project's Advisory Board. Advisory Boards will be provided with standard Articles of Association and FS will register those articles with the State of California. Each project should forward a copy of meeting minutes to the FS Executive Director, as they are finished, as well as the Advisory Board roster and any other governing documents.
Administrative Fees
Except as stated below, FS will charge each project 10% of its gross receipts as an administrative fee. The forgoing rate does not apply to receipts attributable to grants from governments or public agencies, which are subject to a 15% administrative fee.
In addition to the administrative fee on gross receipts, FS will retain one-half of all interest earned by a project's funds on deposit.
FS will charge projects $50.00 for each employee to cover setup costs.
FS will charge projects $50.00 for each manual check required.
Insurance Provided by FS
FS maintains general liability insurance, and workers' compensation insurance for all employees at no additional charge.
Fiscal Year
All projects must use a fiscal year ending on June 30.
Lobbying
Funds are prohibited from excessive lobbying, or any other activities that would jeopardize FS's charitable tax-exempt status. FS has the right to determine, in its sole discretion, what constitutes excessive lobbying by a project, or what activities jeopardize FS's tax-exempt status. All lobbying expenditures must be reported to FS management.
Mail Services
FS is applying for a bulk mail permit that may be available to projects. To be eligible to use FS's permit, a mailing must go through FS's designated mailhouse. Costs for this service will be charged against the project.
Sponsor Identification
All project letterheads and external communications must include the identifying line, "A project of Fiscal Sponsor."
Amendments
These policies may be amended from time to time with consent of Project's authorized representative.
Acknowledgment
I have received, understand, and agree to the forgoing sponsorship policies of Fiscal Sponsor, on behalf of my project.
Precious Sister:
Thinking of you during my prayers today.
So I am taking a moment to send blessings your way,
Life zips by quickly and oh so fast,
I am not quite sure if my heart will last.
I don’t want another moment to pass without saying to you,
How appreciative I am --thank you for being who you are and for all you do!
You are incredible women of noble deeds,
You have nurtured many souls and planted invaluable life-changing seeds.
May your life be anointed with abundance and happiness,
I am sending you all my love and my very very best.
Always,
XO Asahi
The White House Project (WHP) provides this site as a service to its members, to those interested in women's leadership, and to the public, in furtherance of WHP's mission as a 501(c)(3) nonpartisan, not-for-profit organization.
WHP is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date.
Although WHP's Web site may include links providing direct access to other Internet resources, including Web sites, WHP has not participated in the development of those other sites and does not exert any editorial or other control over those sites. WHP is not responsible for the accuracy or content of information contained in these sites.
Links from WHP to third-party sites does not constitute an endorsement by WHP of the sites, organizations, or their products and services. The appearance on the Web site of advertisements and product or service information does not constitute an endorsement by WHP, and WHP has not investigated the claims made by any advertiser.
Opinions expressed by contributors to this site are not necessarily those of WHP.
Opinions
The opinions expressed by contributors to the WHP site are solely those of the individual writers and do not reflect the opinions of WHP, the members of WHP, the WHP board of directors, WHP corporate council members, volunteers, or individuals associate with WHP.
Endorsements
Reference herein to any specific person, candidate, or service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by WHP, the members of WHP, the WHP board of directors, WHP corporate council members, volunteers, or individuals associate with WHP.
INTELLECTUAL PROPERTY: WHP and its licensors own the copyright to the Site, which is protected by United States copyright law. No user may reproduce, distribute, modify, download or otherwise use any content on the Site for any purpose other personal use or as expressly permitted, without the prior written permission of WHP. WHP owns all rights to its name and logo, which are protected by trademark law and are registered with the United States Patent and Trademark Office.
Stacy Bayton's Comments
Comment Wall (158 comments)
You must sign up and become a White House Project Leader to add comments!
Join this network
Best,
Olivia
Thanks for the information. I will def check it out!
Come back, come out where ever you are,
The White House Project is a forum for women leaders and stars.
There is plenty of social media but none quite like this,
A special place for women to edify, protest, lament or share in bliss.
Thinking of you all especially during my prayers today.
So I am taking a proactive moment to send blessings your way,
Life zips by quickly and exceedingly fast,
I am not quite sure if I will be here tomorrow or if my ailing heart will last.
I don’t want another moment to pass without saying to you,
How appreciative I am --thank you for being who you are--- and for all you do!
You are incredible women of courageous and noble deeds,
You have nurtured many souls and planted invaluable life-changing seeds.
May your life be anointed with abundance and happiness,
I am sending you all my love, special encouragement and my very best.
Always & Forever
Elizabeth Asahi Sato, Women Rule 2008!
The most complete book on the subject is, "Fiscal Sponsorship: Six Ways To Do It Right," available for $14.95 + $3.50 shipping/handling (California residents add sales tax) from San Francisco Study Center, 415-626-1650; http://www.studycenter.org. or from http://www.amazon.com. One fiscal sponsor that publishes its guidelines and application online is the Boston Film & Video Foundation: http://www.bfvf.org/fiscal.htm.
What are the benefits of using a fiscal sponsor?
Groups may decide that using a fiscal sponsor makes sense for a variety of reasons;
Speed - It normally takes four to six months from the time an application for tax exemption is filed with the IRS to receive notice that tax-exempt status has been granted, and that is IF the IRS has no questions about information contained in the application. Theoretically one could make arrangements to be fiscally sponsored in a day or less, although a couple of weeks is more typical.
Efficiency - Especially for small groups, having someone else provide most of your administrative, or infrastructure functions may be cheaper than doing it yourself. This is especially true if you are a group that is only expecting to be in existence for a short period of time.
Convenience - Most groups, start-up or otherwise, want to focus their energy on their charitable activities. Having to create and maintain an infrastructure can be distracting from the mission of the group.
Necessity - There are some funding sources that will not fund brand-new groups. One way around this restriction is to become part of a group that has some history.
What are the disadvantages?
As a sponsored project of an already existing 501(c)(3), your "parent organization" is legally responsible for everything you do. This includes the responsibility to comply with the terms of the grants you have been awarded and how you operate. If you and your sponsor disagree, you may be forced to "do it their way".
Some foundations have policies that do not permit them to make grants through fiscal sponsors.
What are some of the services typically provided by fiscal sponsors?
There is really no such thing as a "typical" bundle of services provided by a sponsor. The services available from sponsors vary from nothing to those listed below that are often provided by a professional sponsor.
Financial
Federal, state and local tax & informational returns
Receipt and acknowledgment of tax-deductible donations and grants
Payroll tax remittance and filings
Monthly financial statements
Financial record-keeping
Independent Audit
Check processing and issuance for expenses, I-9s, 1099s
Insurance
Directors' & Officers Insurance
Volunteer lnsurance
General Liability
Umbrella
Commercial Automobile
Human Resources Administration
Payroll processing, W-2s
Personnel policies in compliance with federal, state and local laws
Comprehensive benefits package
Benefits administration, 5500
Technical assistance on personnel issues
General Administration
Bulk rate postal permit
Resale permit
Sales tax reports
Legal advice
Grant progress reports
If my group is operating under a fiscal sponsor, and we’ve decided to become an independent nonprofit, what are the steps we should take?
If you have decided to separate from your current sponsor and don't want to affiliate with another the process to become independent begins with informing your current sponsor of your decision. Most often you will next create public benefit corporation that will file applications with both the IRS and state taxing authority asking to be exempt from income tax. From the time the applications are submitted it usually takes four to six months to receive your determination letters (notice that exemption has been granted). When you receive your notice it is retroactive to the date of your original application. While you are waiting for you letter you will need to do all those things that any new business does (open bank accounts, hire employees obtain insurance, etc.). The final step is arranging to have your sponsor transfer the project's assets and liabilities to the new nonprofit.
When a project sets up a relationship where it voluntarily gives up some control ever its activities, it is always a good idea to have a written contract. Often a sponsor will have a standard contract that it uses with new projects. A good contract will have a procedure outlined in it as to how to terminate the relationship if for some reason either side becomes uncomfortable. Read the contract carefully and don't be afraid to ask the sponsor questions. The sponsorship agreement is a legally enforceable document so unless the group has experience in this area, a review of the document by an attorney paid to represent your interests is a good idea. Make sure you know what you are getting yourself into.
Sample: Fiscal Sponsorship Grant Agreement
01-17-2006
FlSCAL SPONSORSHIP GRANT AGREEMENT
On _______________, 1999, ___________________ ("Grantor") decided that financial support of the following purposes __________________________________ ("the project"), more particularly described in a proposal dated _____________________________,1999 ("the proposal"), from _____________________________________("Grantee") will further Grantors tax-exempt purposes under Section 501(cX3) of the Internal Revenue Code ("lRC"). With regard to the selection of Grantee or any other beneficiary to conduct the project, Grantor has exercised and shall retain full discretion and control over the selection process, acting completely independently of Grantee or any funding source. Grantor has created a restricted fund designated for the project and has decided to grant all amounts that it may receive and deposit to that fund (less any administrative charge set forth below), to Grantee, subject to the following terms and conditions:
1. Grantee's separate legal existence, for all purposes including tax reporting, is established by the following: [choose one]
Grantee is a ___________________nonprofit corporation which is, and shall be throughout the duration of this Agreement, organized and operated for tax-exempt purposes described in IRC Section 501(c)(3). Grantee has applied to the Internal Revenue Service for recognition of its tax-exempt status and shall keep Grantor informed on the progress of its application. OR
Grantee has provided Grantor with a completed and filed IRS Form SS-4, along with any other registration or governing documents, showing Grantee's separate existence as an unincorporated association. OR
Grantee is an individual person, acting as a sole proprietor. OR Grantee is a partnership comprised of _______________________.
2. Grantee shall use the grant solely for the project described in the proposal, and Grantee shall repay to Grantor any portion of the amount granted which is not used for that project. Any changes in the purposes for which grant funds are spent must be approved in writing by Grantor before implementation. Grantor retains the right, if Grantee materially breaches this Agreement, to withhold, withdraw, or demand immediate return of Grant funds, and to spend such finds so as to accomplish the purposes of the project as nearly as possible within Grantor's sole judgment. Consistent with Interpretation No. 42 of Statement No. 116 issued by the Financial Accounting Standards Board, Grantor retains the unilateral power, without approval from any funding source, from Grantee, or from any other interested party, to redirect use of grant funds away from Grantee to another beneficiary capable of fulfilling the purpose. of the project. Any tangible or intangible property, including copyrights, obtained from third parties or created by Grantee as part of this project shall remain the property of Grantee. The amount and date of each disbursernent of grant funds to Grantee shall be within the discretion of Grantor.
3. Grantee may solicit gifts, contributions, and grants to Grantor, earmarked for the purposes of the project. Grantee's choice of funding sources to be approached, and the text of Grantee's fundraising materials, are subject to Grantor's prior written approval. All grant agreements, pledges, or other commitments with funding sources to support this project shall be executed by Grantor. The cost of any reports or other compliance measures required by such funding sources shall be borne by Grantee. Grantor shall be responsible for the processing, acknowledgment, and deposit in the restricted fund of all monies received for the project, which shall be reported as the income of Grantor for both tax purposes and for purposes of Grantor's financial statements.
4. Grantee assumes the risk that any funding source may exercise the discretion to not grant or not appropriate funds to Grantor for support of the project. Any amount advanced by Grantor to Grantee, with the expectation that a pending grant request will be approved by a funding source, shall be treated as an obligation to be repaid by Grantee to Grantor, either from monies deposited in the restricted fund or from Grantee's assets, upon demand by Grantor. Regarding any funds awarded to Grantor by the City and County of San Francisco ("City") for support of the project, the parties agree as follows: Grantor's rights under this Agreement may be assigned to City without the prior consent of Grantee. This Agreement shall incorporate all the applicable terms of any Grant Agreement executed between Grantor and City, including but not limited to the City's audit and inspection rights. Grantee shall be listed as a "permitted subcontractor" under any such City Grant Agreement.
5. An administrative charge of ________ percent ( _____ %) of all amounts deposited to the restricted fund shall be transferred to Grantor's general fund to defray Grantor's costs of administering the restricted fund and this grant. In addition, any interest earned on the restricted fund shall be retained in Grantor's general fund.
6. Grantor shall not be responsible for the community programs, public information work, fundraising events, accounts payable and receivable, negotiation of leases and contracts, insurance, day-to-day disbursement of project funds, or other matters related to activities conducted by Grantee. No one working on the project shall be an employee of or independent contractor with Grantor. Grantee shall assume full and complete responsibility for all liabilities to third parties incurred in connection with the project including but not limited to any and all claims whether asserted or unasserted while this Agreement is in effect. With regard to the selection of any subgrantees to carry out the purposes of this grant, the Grantee retains full discretion and control over the selection process, acting completely independently of Grantor. There is no agreement, written or oral by which Grantor may cause the Grantee to choose any particular subgrantee.
7. Nothing in this Agreement shall constitute the naming of Grantee as an agent or legal representative of Grantor for any purpose whatsoever except as specifically and to the extent set forth herein. This Agreement shall not be deemed to create any relationship of agency, partnership, or joint venture between the parties hereto, and Grantee shall make no such representation to anyone.
8. Grantee shall submit a full and complete report to Grantor as of the end of Grantee's annual accounting period within which any portion of this grant is received or spent. The initial report shall be submitted by Grantee no later than sixty (60) days after the end of such period. The report shall describe the charitable programs conducted by the Grantee with the aid of this grant and the expenditures made with grant funds and shall report on the Grantee's compliance with the terms of this grant.
9. This grant is not earmarked to be used in any attempt to influence legislation within the meaning of Internal Revenue Code Section 501(c)(3). No agreement, oral or written, to that effect has been made between Grantor and Grantee.
10. Grantee shall not use any portion of the funds granted herein to participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office, to induce or encourage violations of law or public policy, to cause any private inurement or improper private benefit to occur, nor to take any other action inconsistent with Section 501(c)(3) of the Internal Revenue Code.
11. Grantee shall notify Grantor immediately of any change in (a) Grantee's legal or tax status, or (b) Grantee's executive staff or key staff responsible for achieving the grant purposes.
12. Grantee hereby irrevocably and unconditionally agrees, to the fullest extent permitted by law, to defend, indemnify and hold harmless Grantor, its officers, directors, trustees, employees and agents, from and against any and all claims, liabilities, losses and expenses (including reasonable attorneys' fees) directly, indirectly, wholly or partially arising from or in connection with any act or omission of Grantee, its employees or agents, in applying for or accepting the grant, in expending or applying the funds furnished pursuant to the grant or in carrying out the program or project to be funded or financed by the grant, except to the extent that such claims, liabilities, losses or expenses arise from or in connection with any act or omission of Grantor, its officers, directors, trustees, employees or agents.
13. Either Grantor or Grantee may terminate this Agreement on thirty (30) days' written notice to the other party, so long as another nonprofit corporation which is tax exempt under IRC Section 501(c)(3), and is not classified as private foundation under Section 509(a) ("a Successor"), is willing and able to sponsor the project. The balance of assets in Grantor's restricted fund earmarked for the project shall be transferred to the Successor at the end of the notice period or sooner if all parties so agree. Grantee shall be eligible to be a Successor itself so long as Grantee has received, no later than the end of the notice period, a determination letter from the Internal Revenue Service indicating that Grantee meets the qualifications for a Successor stated above.
14. In the event of any controversy, claim, or dispute between the parties arising out of or related to this Agreement, or the alleged breach thereof, the prevailing party shall, in addition to any other relief, be entitled to recover its reasonable attorneys' fees and costs of sustaining its position.
15. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to agreements made and to be enforced entirely within such State.
16. This Agreement shall supersede any prior oral or written understandings or communications between the parties and constitutes the entire agreement of the parties with respect to the subject matter hereof: This Agreement may not be amended or modified, except in a writing signed by both parties hereto.
IN WITNESS WHEREOF, the parties have executed this Fiscal Sponsorship Grant Agreement effective on the ______________ day of _________________ , 199_.
GRANTOR: __________________________________________
By: ______________________________
Name:____________________________
Title:_____________________________
GRANTEE: __________________________________________
By: ______________________________
Name:____________________________
Title:_____________________________
EXHIBIT 1: SPONSORSHIP POLICIES
Sponsorship Policies of FS
Accounts Payable
Acceptable invoices received by end of business on any Monday will be paid and mailed by end of business on the following Friday. "Acceptable invoices" must be original, approved, coded documents (small receipts to be mounted on 8.5 x 11 paper). It will be the responsibility of each project to submit a completed IRS Form W-9 for each new vendor.
Cash Advances
Under no circumstances does FS advance money to projects. Deposited funds must be cleared by the bank prior to any requested draw, which may take up to two weeks.
Employees
FS does not allow projects to pay individuals who satisfy the IRS definition of employees as contractors. FS management is available to discuss employee vs. contractor classification issues with projects.
Payroll
ANY request to change a payroll record (pay rate, termination, regularly scheduled hours) must be communicated to FS management via an employee action sheet at least five business days prior to the effective date of the change. In order to receive a paycheck, an employee must have submitted a completed; INS Form I-9, IRS Form W-4, California Development Department Form DE-4 (if applicable), signed acknowledgment of receipt of a personnel policies manual, and an employee action form at least five business days prior to payday. FS management will provide action forms, file all payroll tax returns, and IRS Form W-2's. The head of each project will need to sign a statement agreeing that their project will not deviate from the personnel policies manual.
Bonuses are a very regulated benefit for tax-exempt organizations in California. In fact, the payment of discretionary bonuses is expressly prohibited. FS management is available to discuss incentive compensation arrangements with projects to help avoid conflicts with regulatory agencies.
Benefits
No project can offer or deny benefits to its employees which differ from the personnel policies manual.
Job Descriptions
Projects are asked to develop and maintain job descriptions for each employee.
Grants, Awards, and Scholarships Made
For any grants, awards, or scholarships made by a project, FS management requires a copy of the signed grant agreement along with a completed check request form. FS's Executive Director's signature is required for amounts over $5,000. If the grant is made to an organization that is not a 501 (c) (3) charity that FS currently lists in its database, additional paperwork will be required. Forms and procedures are subject to the Executive Director's review.
Grants Received
FS's Executive Director must co-sign all original grant agreements and be copied at least one week in advance on all progress and final report submissions. Grants involving government or public agency monies have very heavy reporting and auditing requirements that a project must discuss in advance of acceptance with the Executive Director.
Donations
FS will accept, process, and acknowledge contributions to each project. This includes issuing receipts for tax deductions. Donations should be made payable to "XXX, a project of FS".
It is not the FS accounting staff's responsibility to meet with a fund's donors and walk them through paperwork. FS management will work with funds to educate them on the necessary forms to liquidate a noncash gift. Donations over $250.00 will be individually receipted. Stock gifts can only be made through FS's designated broker.
Credit Accounts and Other Liabilities
Project Directors may not incur debts or liabilities beyond the project's ability to pay; individual Project Directors are personally liable for any excess. A project's ability to pay is measured strictly by its cash balances, without including anticipated grants or contributions.
Fundraising Activities
Fundraising activities are very labor intensive to administer. FS management requires at least one month's notice of any fundraising events. A copy of all mailings and solicitations must be approved by FS management in advance of mailing or other distribution. The project must complete a Fundraising Checklist form prior to each event. Please remember, other than bingo, any fundraising device involving an element of chance (ex. raffles) are a misdemeanor in California. FS management is available to answer any questions a project may have regarding fundraising activities.
Volunteers
The use of volunteers exposes FS to additional liability. ALL volunteers who provide services to, or perform services for, a project without compensation for their time must sign the standard volunteer indemnification and release form. (Reimbursement of expenses does not constitute compensation for time spent.)
Financial Statements
FS management will provide a statement of monthly activity and a detailed trial balance within 30 days of each month end. Any corrections to the project's accounts must be requested within 30 days after receipt of that statement.
Bank Accounts
No project shall maintain any bank account other than those maintained on its behalf by FS.
Multiple Funds
FS has the ability to set-up cost centers within a fund. FS also has the ability to set-up multiple funds for a project. In situations where projects need multiple funds on the general ledger, FS management is available to advise on inter-fund transfers to help compliance with charitable trust rules.
Advisory Board
Each project will need to maintain a current listing of the names, addresses, and phone numbers of all members of a project's Advisory Board. Advisory Boards will be provided with standard Articles of Association and FS will register those articles with the State of California. Each project should forward a copy of meeting minutes to the FS Executive Director, as they are finished, as well as the Advisory Board roster and any other governing documents.
Administrative Fees
Except as stated below, FS will charge each project 10% of its gross receipts as an administrative fee. The forgoing rate does not apply to receipts attributable to grants from governments or public agencies, which are subject to a 15% administrative fee.
In addition to the administrative fee on gross receipts, FS will retain one-half of all interest earned by a project's funds on deposit.
FS will charge projects $50.00 for each employee to cover setup costs.
FS will charge projects $50.00 for each manual check required.
Insurance Provided by FS
FS maintains general liability insurance, and workers' compensation insurance for all employees at no additional charge.
Fiscal Year
All projects must use a fiscal year ending on June 30.
Lobbying
Funds are prohibited from excessive lobbying, or any other activities that would jeopardize FS's charitable tax-exempt status. FS has the right to determine, in its sole discretion, what constitutes excessive lobbying by a project, or what activities jeopardize FS's tax-exempt status. All lobbying expenditures must be reported to FS management.
Mail Services
FS is applying for a bulk mail permit that may be available to projects. To be eligible to use FS's permit, a mailing must go through FS's designated mailhouse. Costs for this service will be charged against the project.
Sponsor Identification
All project letterheads and external communications must include the identifying line, "A project of Fiscal Sponsor."
Amendments
These policies may be amended from time to time with consent of Project's authorized representative.
Acknowledgment
I have received, understand, and agree to the forgoing sponsorship policies of Fiscal Sponsor, on behalf of my project.
_____________________________ ________________________
Program Director's Name & Signature Date
or
__________________________________ ________________________
Advisory Board Chair's Name & Signature Date
Thinking of you during my prayers today.
So I am taking a moment to send blessings your way,
Life zips by quickly and oh so fast,
I am not quite sure if my heart will last.
I don’t want another moment to pass without saying to you,
How appreciative I am --thank you for being who you are and for all you do!
You are incredible women of noble deeds,
You have nurtured many souls and planted invaluable life-changing seeds.
May your life be anointed with abundance and happiness,
I am sending you all my love and my very very best.
Always,
XO Asahi
Welcome to
The White House Project
Sign Up
or Sign In
About
Latest Activity
Lush Red Rose
Vote. Run. Lead. Shop.
Go >
Events
One Young World
December 20, 2009 at 6pm to December 31, 2009 at 11:45pm – Online
Michigan ROCKS!!!
December 29, 2009 from 8pm to 11pm – Uptown Grille
Commercial Mortgage Lending Training
January 4, 2010 at 9am to January 8, 2010 at 5pm – Shorter College
The Winner's Summit Conference & Expo ~ Savvy Advice * Practical Application * For Winning Women!
March 19, 2010 at 6pm to March 20, 2010 at 7pm – Hyatt Regency Baltimore Harbor
Community Care Plus Pageant
July 3, 2010 at 6pm to July 4, 2010 at 10pm – The Orleans
Get a badge for The White House Project!
Get Badge
Disclaimer
WHP is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date.
Although WHP's Web site may include links providing direct access to other Internet resources, including Web sites, WHP has not participated in the development of those other sites and does not exert any editorial or other control over those sites. WHP is not responsible for the accuracy or content of information contained in these sites.
Links from WHP to third-party sites does not constitute an endorsement by WHP of the sites, organizations, or their products and services. The appearance on the Web site of advertisements and product or service information does not constitute an endorsement by WHP, and WHP has not investigated the claims made by any advertiser.
Opinions expressed by contributors to this site are not necessarily those of WHP.
Opinions
The opinions expressed by contributors to the WHP site are solely those of the individual writers and do not reflect the opinions of WHP, the members of WHP, the WHP board of directors, WHP corporate council members, volunteers, or individuals associate with WHP.
Endorsements
Reference herein to any specific person, candidate, or service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by WHP, the members of WHP, the WHP board of directors, WHP corporate council members, volunteers, or individuals associate with WHP.
INTELLECTUAL PROPERTY: WHP and its licensors own the copyright to the Site, which is protected by United States copyright law. No user may reproduce, distribute, modify, download or otherwise use any content on the Site for any purpose other personal use or as expressly permitted, without the prior written permission of WHP. WHP owns all rights to its name and logo, which are protected by trademark law and are registered with the United States Patent and Trademark Office.
© 2009 Created by The White House Project on Ning. Create a Ning Network!
Badges | Report an Issue | Privacy | Terms of Service