At FOUNDATION NAME, we recognize the considerable value of well structured fiscal sponsorship relationships and have adapted our grantmaking practices to accommodate them. If you are seeking support from us but are not already a 501(c)(3) public charity, we encourage (OR require) you to partner with a qualified fiscal sponsor.

Generally speaking, fiscal sponsorship is when a nonprofit, usually a 501(c)(3) public charity, furthers its mission by receiving and expending funds to support a mission-aligned “Project” while retaining discretion and control over the funds. Depending on the type of fiscal sponsorship, fiscal sponsors may also share their legal home, back office, and other resources with the project(s). Unlike a traditional program carried out by a nonprofit, fiscal sponsorship arrangements are typically memorialized in an agreement that defines roles and responsibilities. The leadership of the Project usually reserves the right to exit the relationship. For information on fiscal sponsorship, including a description of the different models and tips for finding the right fiscal sponsor, please visit https://guiaauspiciofiscal.org/.

For groups working with a fiscal sponsor, our application process is similar to that of an independent standalone nonprofit with additional simple steps and considerations to ensure the relationship is clearly understood and set up for success:

• Application. If we receive multiple funding requests from different groups utilizing the same fiscal sponsor for the same funding opportunity, we will evaluate each proposal independently. For all applications involving a fiscal sponsor, the sponsor, and not the project, is our applicant of record and if an award is made, the fiscal sponsor is our official grantee organization. For the application, we will ask for information on the background and proposed work of the sponsored project as well as information on the work and overall health of the sponsor. For the sponsored project a project-specific and/or general operating budget may also be required, depending on the purpose of the grant. For the sponsor, overall organizational financials and key compliance documents are requested.
  • For Sponsored Projects we ask for:
    
    • LIST KEY INFORMATION AND DOCUMENTS, REQUIRED AND OPTIONAL.
  • For the Fiscal Sponsor we ask for:
    
    • LIST KEY INFORMATION AND DOCUMENTS, REQUIRED AND OPTIONAL.
• Fiscal Sponsor Agreement. When submitting your application, please include a copy of the fiscal sponsorship agreement (also sometimes referred to as a Memorandum of Understanding). We will review it to confirm that the basic terms to support a clear and healthy relationship are included. Please be sure that your agreement includes at minimum the following key terms and understandings:
  • Identification of the parties involved
  • Fiscal sponsorship model (i.e., Model “A”, Model “C”, etc.) relationship
  • Key supports offered by and responsibilities of the sponsor
  • Key responsibilities of the project
  • Cost allocation rate and other fees and how they are assessed
  • How intellectual property (and other non-cash assets) will be managed
  • Language affirming that the sponsor retains fiduciary control of charitable funds
  • Term and termination provisions
• Pre-contract Meeting. (optional: may be requested before application at Letter of Inquiry stage, after full proposal submission, or after award notification) We may contact you to have a meeting. Both a representative of the fiscal sponsor and the project lead(s) will be asked to join this meeting. The purpose of the meeting is to confirm the parties are aligned on roles and responsibilities and to address any questions that came up during our review of the fiscal sponsorship agreement and/or your application.
• Reporting. Ultimate responsibility for grant compliance and reporting lies with the sponsor. Because project representatives are closest to the work, in most cases, a representative of the project writes the narrative and prepares reports to be submitted to us per our grant agreement. It is important for representatives from both the sponsor and project to review text and financials before submitting to the funder. If we learn a grant is out of compliance, we will typically communicate with both sponsor and project representatives to address the situation.

If you have any questions, please reach out to EMAIL/CONTACT