Model C Fiscal Sponsors

  • 1.  Help with an Unfunded Model C

    Posted 02-23-2024 16:44

    Hello,

    We have been sponsoring a Model C project since November 2022. Despite providing many hours of pro bono support, the project has only raised $1330 - 10% of which is far less than the cost of our services.

    The program founder has cited several reasons for the lack of funding, including a delay in launching their website, soured relationships, and unkept promises by potential funders. While we don't have a fundraising minimum, we have implemented a policy that requires fiscally sponsored projects to show some financial activity within a rolling six-month period.

    We are now considering terminating the sponsorship, as we are unsure of its financial sustainability. However, the program founder is requesting that we continue sponsorship while they work on several potential opportunities.

    We are currently weighing the option of putting the project on a six-month probationary period. We want to support the program, but we also need to consider our own sustainability as an organization as well.

    What is your insight on how to handle this situation? We never want to leave a program hanging, but we also need to ensure that we are making responsible decisions for our organization.



  • 2.  RE: Help with an Unfunded Model C

    Posted 02-23-2024 16:52
    Hey @Amanda LaFleur this is tough but I totally think the probationay period is a great option. I have done this a few times where I project is underperforming and I have the hard conversation with them saying “You have to raise $X by DD/MM/YYY and if you don reach that goes we will close you out”

    It has worked for me on both sides. I have shut down inactive projects and I have had projects appreciate the feet to the fire and got things moving. The key, in my opinion, is making the goal reasonable but it needs to be a stretch and you need to be willing to actually follow through on shutting them down if they dont reach the goal.

    This also really helps make sure there are no surprises. Its all clearly stated and documented and nobody can argue they did not understand the assignment at the end of the period.


  • 3.  RE: Help with an Unfunded Model C

    Posted 02-23-2024 16:59
    This is one of the reasons we have a refundable monthly “fee”. It allows us to start a project that has no money and (we hope) incentivizes the project to raise funds.

    Starting with us with no money? No problem: you’ll pay us $29/month ($348/yr) and if you raise $5000+ in a fiscal year, we refund the $348 we earned in that fiscal year. (NB, $348/yr does not generally cover the actual cost of taking on a project but it covers some of it and it feels fair to us.)

    I personally do not think you have an obligation to actively lose money and resources on a project that has not been able to raise any money and would argue that you are not leaving them hanging at all. If your business model does not allow projects to stick around and take up valuable resources while they figure out how to raise money, I think that’s okay to let them go.


Related Content