ruth
Forum Replies Created
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Mike, our webinar on the 15th on budgeting will help with a framework to integrate the two processes.
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for small local organizations that provide a needed service to the local populace, these kinds of essentially temporarily donated facilities have been very helpful. We tend to see them supporting such stuff as senior centers, arts organizations, health clinics and animal shelters; The problems emerge, as another commenter mentioned, when “political climates” change which they do with some regularity in local government. If a city manger or city council decides, for some reason, that the expenditure is inappropriate, you may need to have a plan B complete with budget ready for immediate deployment. There is also the problem of potentially sinking facility costs into a building that can be taken back – sunk costs and all. Here is an article on the topic https://nonprofitquarterly.org/1-rent-trap-another-nonprofit-finds-real-estate-risk/
nonprofitquarterly.org
The $1 Rent Trap: Another Nonprofit Finds Its Lease at Risk - Non Profit News | Nonprofit Quarterly
All over the country nonprofits get discount lease agreements with local governments that reflect the public sector’s interest in the nonprofit’s work. But what happens when circumstances and administrations change?
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This is a great question. I think fiscal sponsors, at their best, are a real gift to startup nonprofits in that they can allow you to concentrate on the tasks related to mission and base building – that exploration of ling term viability. But as others here have commented, the quality of the sponsor is key. Sponsors come in all shapes and sizes. Any nonprofit can sponsor another nonprofit of related mission so asking a like minded nonprofit is always an option, but then there are the umbrella groups established specifically to act as sponsors. These last charge different rates for different service levels so – as with loans or contracts, it is important to agree upon terms. It is also really important to get a sense of reputation. Calling others who have used that service to get a feel about what may have worked or not worked for them is important. One of the emerging leaders in this field is the Social Impact Commons which just released a 2023 Fiscal Sponsorship Field Survey available here: https://www.socialimpactcommons.org/
This could prove enormously useful to you in making this decision.
Additionally, an article in the Chronicle of Philanthropy on the topic can be accessed here https://www.philanthropy.com/<wbr>article/fiscal-sponsorship-is-<wbr>on-the-rise-allowing-groups-<wbr>that-arent-nonprofits-to-<wbr>accept-donations?utm_source=<wbr>Iterable&utm_medium=email&utm_<wbr>campaign=campaign_8418164_nl_<wbr>Philanthropy-Today_date_<wbr>20231129&cid=pt&source=ams&<wbr>sourceid=&sra=true
Full disclosure: The Nonprofit Financial Commons was fiscally sponsored over its first few years until very recently and it worked very smoothly.
