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 […]

Fiscal Sponsor: Before You Accept a Project …

Many fiscal sponsors enter into relationships to support multiple fiscally sponsored projects (“Projects” or “FSPs”). Typically, these fiscal sponsors have some screening mechanism before agreeing to enter into these relationships, but often, the screening is superficial, resulting in significant risk exposure and/or undesirable administrative burdens for the fiscal sponsor. Proper screening is of critical importance […]

How to Find a Fiscal Sponsor

Social entrepreneurs have a number of options for housing a charitable project, and many recognize fiscal sponsorship as the best option. But how do you find and select a fiscal sponsor? What is a fiscal sponsor? While no legal definition exists, a comprehensive (Model A) fiscal sponsor is generally considered to be a tax-exempt organization […]

Nonprofits in Trouble: The Fiscal Sponsorship Option

The twin crises of pandemic and recession are straining the region’s philanthropies and could force as many as a third of nonprofits to close or merge before the economy recovers, according to top executives in the sector. The Washington Post (8/3/20) In these historically challenging times, there are predictions that we could see more than […]