WHAT IS A FISCAL SPONSOR?
Fiscal Sponsors are 501(c)(3) charitable corporations that give unincorporated groups whose missions are aligned with their own tax-exempt home. Fiscal sponsorships allow individual organizations to conduct charitable activities and receive tax-exempt grants and donations without building a full organizational infrastructure or receiving a formal nonprofit status from the IRS.
STRUCTURE: HOW WE SUPPORT THE SPONSORED ORGANIZATION
- Sponsored organizations would fall under the United Way 501(c)(3) non-profit tax-exempt status. They are then able to receive foundation grants and other charitable donations.
- Agency leadership jointly provides a quarterly update to the United Way of San Joaquin County Board of Directors.
- Project Lead from the United Way will be assigned to support consistent organizational and strategic oversight to work one on one with interested organization.
FINANCIAL SUPPORT: FISCAL OVERSIGHT
- An individual bank account for the sponsored organization including Payroll-check distribution, invoicing and monthly financial statements will be established.
- Fiscal sponsor manages:
- Tax filing and accounting with year-end audit including IRS 990 tax filing Record keeping and reporting of project finances, including cash receipts and disbursements
- Payment of bills and invoices from project funds
- Monthly financial statements
- Ability to offer online contributions and donations using United Way’s online platform.
- United Way oversees compliance for local, state and federal regulators
- Insurance services include—general liability, certificates of insurance for qualifying events and activities.
- Sound financial reporting and cash management will be owned by the fiscal sponsor. We will hold sponsored organization accountable for its own sustainability with grant funding and/or fundraising.
- Manages HR support for sponsored organizations including assistance with hiring and posting, recruitment, ongoing 90-day performance evaluation needs, background checks as needed.
- Manages sponsored organization with necessary new employee orientation as needed.
- Provides benefits administration and group plans–paid health, dental, vision, life insurance
- Provides retirement plan
- Tracking and reporting for contracted employees—IRS 1099
- Direct sponsor model requires that the project employees are employees of the sponsor
FISCAL SPONSOR RELATIONSHIP
- It is critical that as a fiscal sponsor United Way of San Joaquin County understands and addresses the elements of a fiscal sponsorship relationship. The sponsor is liable for everything the project does.
- Sponsored organizations must have an Advisory Committee that oversees its work. This promotes a collective sense of responsibility for the project and serves to hold the project director accountable.
- The Advisory Committee must have a form of bylaws called “articles of association: to govern the committees decision making process.
PROFESSIONAL SUPPORT: ORGANIZATIONAL SUBJECT MATTER EXPERTS AND SPACE
- Assists with meeting coordination, organizational development, leadership on-boarding, office support, group facilitation as needed for strategic and organizational planning.
- Offer of use of conference room space at United Way offices.
- Sponsoring organizations leads or staff will meet with United Way to develop mutual expectations for project and criteria for successful planning.
PARTNERSHIP TOWARDS EXPANSION: COMMUNICATION AND PROJECT PLANNING
- Will work in partnership to develop timeline and goal planning and event planning support.
- Will integrate sponsored organization as desired with current United Way social media platforms for maximum visibility.
- Use United Way’s online platform to bring in new donors, capture contributions and solicit future funds for your agency is available.
ADVANTAGES OF USING UNITED WAY OF SAN JOAQUIN COUNTY AS A FISCAL SPONSOR:
- Local leadership and strong community relationships to help with the launch and integration of services across counties.
- Has internal subject matter expertise available.
- Has historic record of serving start-up agencies.
- Examples include: Hospice of San Joaquin County, The Eleanor Project, Firefighters Ladies Auxiliary, HERO’s program, HealthForce Partners, and San Joaquin A+.
- Fiscal support is managed with local banks, accounting firms and insurance agents.
- Has internal community network hub to host meetings, conferences.
- Has dedicated Digital Content Lead to help with initial start-up of social media promotions.
Percentage of administration charges to United Way to support start-up. Reviewed annually.
For more information, please contact UWSJC, 209-469-6980