What is Fiscal Sponsorship?
Fiscal Sponsorship
FAQ
Model A Relationship
Model B Relationship
Model C Relationship
“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
Model A: Direct Project
In the case of a Direct Project fiscal sponsorship relationship (“Model A”), the fiscally sponsored project (FSP) and Community Initiatives (CI) are legally considered one and the same. The FSP belongs to CI and is implemented by FSP/CI employees, contractors, and volunteers. Charitable donations are made to CI for the benefit of the FSP. CI assumes total liability for acts of the FSP’s employees. CI files all government forms (e.g., 1040, 1099, 990, payroll tax returns). Legally, the FSP is no different from any other activity carried on by CI directly. The FSP’s mandatory Advisory Committee is self-governing and hires, supervises, and terminates (if necessary) its Project Director.

In a “Model A” relationship, Community Initiatives supervises (via the Project Director) all programmatic operations of the FSP. These include:
All community programs

Public information work

Fundraising events

Processing and acknowledgment of cash and non-cash revenue items

Accounts payable and receivable

Negotiation of leases and contracts

Disbursement of project funds (including grants) from an established restricted fund

Other activities conducted by the project.


A fiscally sponsored project that has, or intends to have, paid employees (as separate from independent contractors) must be a “Model A” project. Under a “Model A” agreement, all project employees become at-will employees of Community Initiatives and are subject to the same personnel policies and benefits as all other Community Initiatives employees.

Please see Mutual Expectations for guidance on the fiscal sponsorship relationship.