Fiscal Sponsorship – Terms and Conditions

These conditions apply to fiscal sponsorship services of Communities Foundation of North Central Florida (“CFNCF”) and establishment of a fiscal sponsorship fund.

  1. Fiscal sponsorships involve (a) accepting contributions made for the benefit of a charitable organization or for a program or project that is established to support or further the charitable purposes and mission of a charitable organization; (b) depositing and maintaining the contributions in a special account with CFNCF designated as an account for the benefit of the charitable organization (the “Fund”); (c) managing and investing amounts held in the Fund; (d) acknowledging receipt of contributions made; and (e) authorizing and paying expenses from the Fund. Fiscal sponsor services do not include fundraising or financial support from CFNCF.
  1. CFNCF typically provides fiscal sponsorship services for organizations and groups (“Fund Sponsors”) that are: (a) newly formed nonprofit organizations that have applied for, or plan to apply for, tax-exempt status with the IRS, but have not yet been determined to qualify as exempt from federal income taxation; (b) community groups planning a specific short-term project, program or activity that is charitable in nature or that will be pursued to raise funds for a nonprofit, charitable organization; or (c) organizations that have been determined by the IRS to be exempt from federal income taxation as charitable organizations described in Section 501(c)(3) of the Internal Revenue Code who wish to establish a Fund.
  1. CFNCF may make fiscal sponsor services available for up to 18 months. At the end of the applicable period, CFNCF may extend the services upon request of the Fund Sponsor through a modified application process.
  1. An organization or community group that would like to establish a Fund may obtain an application from CFNCF and must submit a fully completed, signed application to CFNCF for review and approval before commencing any fundraising activities that may involve the use of a fiscal sponsorship fund or fiscal sponsorship services, with CFNCF staff before submitting the application. The application includes the following information:
  • Name and address of the Fund Sponsor;
  • Name and address of the beneficiary organization, which may be the same as the Fund Sponsor;
  • Description of the specific reasons for establishing the Fund, including a description of the program or project, purposes, objectives, expected duration and fundraising plan;
  • List of Board members, officers and any advisory group members;
  • Names and addresses of individuals who have authority to give directions or instructions to CFNCF and who will receive reports from CFNCF (Fund Advisors);
  • Names and addresses of any fundraising counsel or others who may receive compensation for soliciting funds
  • Organizational documents (Certificate or Incorporation and Bylaws for a nonprofit corporation; Articles of Organization and Operating Agreement for a limited liability company; etc.);
  • IRS determination letter, if applicable. If the organization is not exempt from federal income taxation, copy of application for tax-exempt status, if one has been submitted to the IRS;
  • Most recent Form 990 tax return, if one has been filed;
  • For 501(c)(3) organizations, the most recent filing with the Florida Department of Agriculture relating to solicitation of charitable contributions;
  • Current and future project budgets;
  • Other information, as requested by CFNCF.
  1. CFNCF staff will review all applications and determine the acceptability of the proposed fiscal sponsorship. If CFNCF approves an application, CFNCF will send documents to the Fund Sponsor to establish the Fund. Approval of an application does not constitute an endorsement of the Fund Sponsor, any charitable organization or any program, project or activity to be pursued or carried on.
  1. CFNCF will accept contributions to the Fund, manage and administer amounts held in the Fund and disburse amounts from the Fund in accordance with instructions from the Fund Sponsor. The Fund Sponsor’s designated advisory group will be responsible for providing oversight and any further direction that CFNCF may request. An appointed Fund Advisor must complete and submit to CFNCF a “Payment Request Form” for authorized expenditures. Payments received by 5:00 p.m. Monday will be paid on Thursday of the same week.
  1. All checks must be made payable to the order of “Communities Foundation of North Central Florida” or “CFNCF.”The Fund name should be noted on the check. Fund Advisors should submit a “Check Acknowledgement Form” when sending checks to be deposited in the account.
  1. CFNCF will acknowledge receipt of contributions of $250 or greater made for the benefit of the organization, project or program by sending a letter to the donor. Letters for contributions less than $250 are available upon request.
  1. The Fund Sponsor will be responsible for providing CFNCF with all pertinent information relating to deductibility of contributions. For example, if the Fund Sponsor established a Fund to receive contributions for a dinner-event with a cost of $100 per seat and a dinner cost is $20 per person, the deductible portion would be $80 a person. The Fund Sponsor must work with CFNCF before finalizing fundraising plans to help determine the tax deductible portion of each contribution.
  1. CFNCF will invest amounts held in the Fund in accordance with CFNCF’s usual investment guidelines and policies.
  1. CFNCF will provide quarterly financial reports pertaining to the Fund to the primary Fund Advisors of the Fund.
  1. The Fund Sponsor may apply to other funding sources. CFNCF will not be responsible for fundraising or for providing any financial support. CFNCF may authorize the Fund Sponsor to use CFNCF’s tax determination letter with prior approval from CFNCF and to the extent permitted by applicable law.
  1. The Fund Sponsor will be responsible for paying any applicable sales taxes relating to fundraising or other activities.
  1. The Fund Sponsor must provide CFNCF a copy of all fundraising materials at least five days before publication and on request of CFNCF. Fundraising material may include, but are not limited to, invitations, donor solicitations, dues statements and other materials relations to the solicitation of funds. All fundraising materials that identify the Fund or that inform prospective donors to make contributions to the Fund must identify the Fund as “a fiscal sponsorship fund maintained by Communities Foundation of North Central Florida.” This should assist donors in understanding that they are making a contribution to a charitable organization, which will maintain the contribution in a designated Fund.
  1. As compensation for its services, CFNCF will charge an annual fee of 3-5% of the fair market value of the Fund. The charges will be assessed monthly as 1/12of the average balance for any given month. In addition, there will be a $250 start-up fee for all funds established and a $250 minimum annual fee for each subsequent year. This will be charged by 12/31 in the event cumulative monthly fees have not reached the minimum.
  1. If the organization, program or activity is discontinued or materially changes, the balance of the Fund will be directed to the successor charitable organization, as noted in the fiscal sponsorship agreement submitted to CFNCF, subject to approval by CFNCF.
  1. Any funds or assets donated for the purpose of creating or adding to a Fund constitute an irrevocable gift and become the property of CFNCF. CFNCF has exclusive legal control over all contributed assets of fiscal sponsorship funds.
  1. CFNCF and its officers, directors and representatives will not be responsible for any costs, expenses, debts, liabilities or obligations incurred by the Fund Sponsor or others involved in the project or program, nor will CFNCF distribute or release any funds in amounts that exceed the current balance of the Fund at any time. The Fund Sponsor assumes full responsibility for all such costs, expenses, debts, liabilities and obligations.
  1. The Fund Sponsor agrees to indemnify CFNCF and hold CFNCF harmless from and against any and all claims, liabilities, expenses, losses, actions and proceedings that CFNCF may incur or that may be asserted against CFNCF relating to the Fund or to any activities, events, programs or projects of the Fund Sponsor.
  1. The Fund Sponsor agrees to obtain and maintain insurance in amounts and with coverage acceptable to CFNCF. CFNCF shall be named as an additional insured in insurance policies. The policies of insurance shall provide that they will not be cancelled or terminated without first giving 30 days prior notice to CFNCF. Upon request, the Fund Sponsor shall provide a certificate of insurance to CFNCF.
  1. CFNCF will maintain the Fund and perform its responsibilities as an independent contractor. CFNCF and the Fund Sponsor are not partners or joint ventures. The Fund Sponsor may not incur any obligations for or on behalf of CFNCF without the prior written consent and authorization of CFNCF in each specific instance.
  1. CFNCF may rely on any document, instructions, notices and requests that CFNCF believes in good faith to be authentic in accepting or disbursing any amounts held in the Fund. Additionally, CFNCF may assume that any person designated by the Fund Sponsor who gives any instructions, notice or request to CFNCF relating to the Fund has been properly authorized to do so.
  1. CFNCF will not be responsible for the sufficiency or accuracy of the form, execution or validity of any document delivered to CFNCF by the Fund Sponsor or anyone acting on behalf of or at the direction of the Fund Sponsor. CFNCF’s responsibilities are limited to maintaining the Fund, managing and investing the amounts held in the Fund and other matters set forth in these terms and conditions.
  1. If a dispute arises between or among different claimants with respect to the Fund, CFNCF may retain the Fund without liability to anyone until the dispute is settled by mutual agreement or determined by the final order of a court of competent jurisdiction. CFNCF will not be liable for any act or omission taken or performed in good faith with respect to the Fund.
  1. The Fund Sponsor must, at the request of CFNCF, sign and deliver to CFNCF such additional documents as CFNCF may reasonably request relating to the Fund.
  1. If the Fund Sponsor fails, neglects or refuses to comply with these terms and conditions, CFNCF may in its sole discretion terminate its fiscal sponsorship services and the Fund.

The undersigned, on behalf of the Fund Sponsor: (a) has read the foregoing fiscal sponsorship terms and conditions; (b) understand and agree that they constitute a part of any fiscal sponsorship provided by CFNCF; (c) agree that the terms and conditions relating to establishing the Fund (including insurance, indemnification, responsibility for liabilities and obligations and other terms and conditions) are intended to be contractual in nature; and (d) agree to these terms and conditions as a condition to obtaining fiscal sponsorship services from CFNCF and establishing the Fund.

Name of Fund Sponsor (Organization):______

Fund Name: ______

Date: ______

Fund Advisor Signature: ______

Fund Advisor Printed Name: ______

Fund Advisor Signature:______

Fund Advisor Printed Name: ______