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 termination
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 […]
Fiscal Sponsorship – Exit and Transfer of Assets
A fiscal sponsorship relationship may, at some point, come to an end. Whether the project leaders have found a new sponsor, created a new nonprofit entity with its own exempt status under 501(c)(3) of the Internal Revenue Code, or decided to move on in order to focus on other ventures, the parties should properly terminate […]