Thanks for adding this, Andrew. I made an assumption that I did not state that the request for fiscal sponsorship is probably limited to a project or purpose that will be funded with charitable funds. Again, this is a situation that needs legal guidance.

Kristin,

Your new accountant is correct that any revenue that is received by the nonprofit should be reported on the 990. While there isn’t a way to report them “below the line”, you can communicate how the funds are re-distributed by how you complete Part III: Statement of Program Accomplishments. You can describe this aspect of your work as a…

Read more

Roger,

I had a memory of an earlier discussion on this topic and found it here. The gist of the discussion was comfort with money market funds that are liquid and invested in low risk cash type investments. Many nonprofits are earning decent extra income from their available liquid funds.…

Read more

Hello, Jeff, I can answer most of your questions. Of course, there’s always an “it depends” element, too.

One important distinction for all of these is the choice of which Model of fiscal sponsorship, Model A, comprehensive fiscal sponsorship, the project operates within the sponsor 501c3 nonprofits. For Model C, Pre0approved Grant relationship,…

Read more

I have experience as a fiscal sponsor, though not for a 501c7. The key question is how to assure that the funds will be used for eligible charitable purposes under the 501c3. Otherwise, the form of entity is less important than the clear language and controls in your fiscal sponsorship agreement. Make sure that the 501c3 sponsor has discretion…

Read more