How to Make Grants to Fiscally Sponsored Projects

Many private foundations and government agencies have become comfortable making grants to support fiscally sponsored projects (FSPs). Over the past decade, fiscal sponsorship has become an increasingly familiar structure and more widely recognized as a legitimate option for supporting charitable projects. But there are still many misconceptions about how fiscal sponsorship works and how funders […]

Is Fiscal Sponsorship a Service Provided for a Fee? Why it isn’t and why it matters.

By Erin Bradrick and Josh Sattely Fiscal sponsorship is a growing part of the nonprofit sector and, when done properly, is an important and impactful tool for furthering public benefitting work and activities. However, because fiscal sponsorship is not a relationship that is explicitly defined anywhere in the law or Internal Revenue Code and is […]

Entering into a Fiscal Sponsorship Agreement

Fiscal sponsorship can be an effective and efficient alternative to starting and operating a new nonprofit organization. But there are great variations in how fiscal sponsorship relationships are established and memorialized in a written agreement. One of the first areas of confusion is who enters into the agreement with the fiscal sponsor. These are the […]

Article on Fiscal Sponsor Legal Obligations

In March 2022, NEO Law Group Principal Erin Bradrick presented on the topic of the legal obligations of fiscal sponsors to Fiscal Sponsor Conversations: The Weekly Forum for Fiscal Sponsors hosted on the Schulman Consulting website. The Fiscal Sponsor Directory published excerpts from Erin’s presentation in an excellent article edited by Marjorie Beggs of the […]

Fiscal Sponsorship Exits: Not Always Easy – Part 2

This post on fiscal sponsorship exits follows our first post focused on the selection of a successor and absence of an agreement regarding termination of the relationship between the fiscal sponsor and a Model A project’s leadership. Here, we focus on reasons for the termination that create problems. Poor Fit It’s not uncommon for a […]

Fiscal Sponsorship Exits: Not Always Easy – Part 1

Fiscal sponsorship exits can be very complex and at times contentious. In this series of posts, we’ll identify issues that may provide some guidance in structuring the initial fiscal sponsorship agreement, terminating that agreement, and transferring a project’s assets and liabilities to a successor fiscal sponsor or other nonprofit. For purposes of this series, we’ll […]

Alternatives to Starting a Nonprofit

Many well-intended individuals who want to work on addressing public, social, and environmental needs think about starting a charitable nonprofit. Founding and leading a nonprofit may be viewed as a badge of significance and honor. But before moving forward, founders of a charitable venture should first consider the alternatives. Similarly, lawyers and bar associations asked […]

Fiscal Sponsorship: Fees (Model A)

We’ve written extensively on fiscal sponsorship on this blog and for others, including The Nonprofit Quarterly and the American Bar Association. Over the past few years, we’ve seen a great increase in interest in fiscal sponsorship, but also a rise in misconceptions and disputes, sometimes resulting from fiscal sponsors correcting past unlawful or imprudent practices. […]

Fiscal Sponsorship – Some Tricky Issues: CLA Presentation

Today, NEO Law Group’s Erin Bradrick presented to the California Lawyers Association’s Nonprofit Organizations Committee on some tricky issues involving fiscal sponsorship. The focus was on 501(c)(3) fiscal sponsors and projects. Some highlights below: Common Models Comprehensive (Model A) Pre-approved Grant Relationship (Model C) For a brief summary of these models, see Erin’s article for […]