Fiscal Sponsor Organizations

  • 1.  Sponsoring Incorporated Entities

    Posted 01-26-2024 19:20

    Apologies if I posted this here or elsewhere before. We have a small number of incorporated entities without a 501c3 designation. These entities do no other activities outside of the program/s we sponsor.

    While we understand they must have their own D&O and are accountable for their own state and federal corporate filings, what is the best practice for the FS agreement?

    I have a memory that the program name on the agreement must be distinct from the incorporated entity. Does this impact how we file the DBA and how checks must be written out for that program? Does dropping one of the words make it different enough? (example: dropping “Inc” from Love House Inc.)?

    Thank you for any help you can provide!



  • 2.  RE: Sponsoring Incorporated Entities

    Posted 01-26-2024 19:27
    @Amanda LaFleur is this setup as a Model C or are the programs occuring under you within a Model A?


  • 3.  RE: Sponsoring Incorporated Entities

    Posted 01-26-2024 20:59
    @Josh Brugner We have been treating them as Model As as we are their full operational support.


  • 4.  RE: Sponsoring Incorporated Entities

    Posted 01-26-2024 21:13
    @Amanda LaFleur got it…. I THINK this is kinda a gray area that depends on how much difference you want to mitigate any confusion between their entity and you as the Sponsor of the project. I personally have done it with something as simple as adding Fund, Foundation, Project, Program, etc. I think that dropping the Inc would be good enough but again I think it depends on your appetite for similarities/differences. The more different it is then the more clear it is that the Project is a different thing than their independent org.. I think the closer it is in name then the higher the risks are of a PD or Advisory Council thinking “they run the show since its their org”


    Thats just my two cents.


  • 5.  RE: Sponsoring Incorporated Entities

    Posted 01-29-2024 21:22
    Thank you Josh! This is helpful.


  • 6.  RE: Sponsoring Incorporated Entities

    Posted 02-01-2024 23:50
    If I’m understanding this correctly, you have an incorporated entity that wants to set up a Model A for a discretely charitable purpose unrelated to the business’s money making activities? Often we will suggest adding “Foundation” to the end of the business name for the name of the project. It’s a common practice for a for profit to have a nonprofit wing that is differentiated by using “Foundation” to suggest the charitable nature of the nonprofit wing.


  • 7.  RE: Sponsoring Incorporated Entities

    Posted 02-23-2024 16:45
    @Oliver Hack Thank you! we are implementing this into our best practices. Much appreciated.