Fiscal Sponsor Organizations

  • 1.  Restricted Net Assets

    Posted 04-25-2024 20:08

    How do your auditors classify restricted net assets? The way that our auditors want to do it this year is different than we think it should be. Previous audits have shown all fiscally sponsored project income as restricted.

    Our newer auditors, however, only view contributions to fiscally sponsored organizations as restricted. They classify contracts and earned income that projects receive as unrestricted net assets because it is a contract with C4CS as an organization.



  • 2.  RE: Restricted Net Assets

    Posted 04-25-2024 22:26
    Project money is considered restricted and funds we’ve collected from fiscal fees are unrestricted.


  • 3.  RE: Restricted Net Assets

    Posted 05-01-2024 18:10
    Lisa: From my perspective, and how we have seen it work with many other fiscal sponsors - the revenue restriction is one dimension (FASB and GAAP rules are followed ORG wide), Funding source/ Program Specific tracking - is another dimension, and Project restriction - is the third dimension. Different dimensions allow the Project and Fiscal Sponsor to manage and spend restricted and unrestricted funding sources, manage releases from restrictions, and ensure that particular project spends only the funds available for them. Thus, releases from restriction are managed and reported ORG wide, while the project holds the strategy how and when they spend different funds sources considering the restrictions and other expectations that they (or funder) have set for them. I am available for further conversation and review of your revenue and fund management policy! :)