“Community Initiatives is a great fit; they manage our finances and human resources, including payroll, benefits management, insurance, and employer-paid taxes. Relying on Community Initiatives’ administrative expertise to handle these back-office details allows Active Voice to concentrate on its mission and grow.”

Ellen Schneider
EXECUTIVE DIRECTOR
ACTIVE VOICE
1. What services does Community Initiatives provide its fiscally sponsored projects?
2. What is the relationship between a fiscal sponsor and its projects?
3. How and why may the relationship end?
4. What does Community Initiatives charge for its services?
5. What is the Community Initiatives operating philosophy?
6. Does it matter where I set up my project?
7. Are project donations accepted from any source?
8. What types of activities does Community Initiatives accept for sponsorship?

1.
What services does Community Initiatives provide its fiscally sponsored projects?
We pride ourselves on providing prompt, attentive service in the following core areas:
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Financial management

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Human resources/payroll/benefits

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Grants management


Please see our services pages for more information on each of these areas.

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2.
What is the relationship between a fiscal sponsor and its projects?
Greg Colvin, in his groundbreaking book, Fiscal Sponsorship: 6 Ways To Do It Right, identified six ways to structure a fiscal sponsorship relationship. Community Initiatives is open to using any of these models, but has found, in practice, that three models have served our fiscally sponsored projects most usefully. The most common model (about 90 percent of our projects) is the Direct Project, or “Model A,” relationship, in which the project and Community Initiatives are legally considered one and the same: Community Initiatives receives assets on behalf of, and incurs all liability for, the project. Please see descriptions of “Model A,” “Model B,” and “Model C” project sponsorships. Note: The nature of a project’s fiscally sponsored relationship with Community Initiatives is determined at the time of acceptance by our Board of Directors. To learn more about the policies that govern these relationships, please see our Mutual Expectations.

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3.
How and why may the relationship end?
Fiscally sponsored projects (FSPs) terminate their work with Community Initiatives in various ways. An FSP may do any of the following:
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Complete the project work. Our projects typically end when they have completed their work and spent down all their funds. If funds remain after the project is completed, the FSP may designate a like-minded 501(c)(3) to receive the funds; if appropriate, the balance may be returned to the donor or granted to Community Initiatives.

•
Transfer to another 501(c)(3) organization that will serve as its fiscal sponsor. Any remaining project funds on account with Community Initiatives are transferred to the new fiscal sponsor, and the FSP’s grantors are notified of the transfer of sponsorship.

•
Evolve into its own 501(c)(3). This new nonprofit organization assumes responsibility for its own operation, and any remaining project funds on account with Community Initiatives are transferred to the new entity. Community Initiatives staff works with the FSP to make this a smooth transition.

•
Merge with another 501(c)(3) organization. In this case, a merger agreement is executed between the two entities and the FSP’s funds are transferred to the new entity.

•
Be terminated by Community Initiatives. Community Initiatives’ fiscal sponsorship of a project may be terminated without advance notice to the project in either of the following circumstances:
1. The FSP’s account has a zero cash balance
2. No significant activity has occurred in connection with the project for one year or longer



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4.
What does Community Initiatives charge for its services?

The fee is 10% of revenues as they are received.  When projects reach $ 1 million in revenues in a fiscal year, the fee is reduced to 6% of revenues.  Projects need to have a  minimum of $24,000 in  revenues each fiscal year, in order not to be billed a service fee of $200 per month.  Projects with employees must monitor cash flow so that they maintain enough funds to cover three months of payroll at all times.  Failure to do so could result in employee layoffs.

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5.
What is the Community Initiatives operating philosophy?

In years of surplus, rebates are given to FSPs when possible.

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6.
Does it matter where I set up my project?
Community Initiatives is not currently accepting projects located or doing business outside the state of California.

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7.
Are project donations accepted from any source?
Yes, in U.S. currency only. These can include earned revenues or contributions from foundations, corporations, governments, or individuals. We can also accept gifts of stock.

Note: We require that a project provide $24,000 in identified funding (in-hand or formally committed) in order to be considered for fiscal sponsorship.

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8.
What types of activities does Community Initiatives accept for sponsorship?
We accept all types of charitable activities. Historically, our projects have been categorized as follows: Arts & Culture (11%), Education (11%), Environment (4%), Health (10%), Human Services (21%), and Public Affairs (43%).

These content areas also represent the following types of projects:
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New, incubating organizations

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Projects of limited duration

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Community efforts responding to crises and urgent calls to action

•
Collaborative, philanthropic efforts among foundations


These are discussed in greater detail, with examples, in our brochure/annual report.

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