Fiscal sponsorship is widely used in the nonprofit sector and can be a great tool for advancing charitable activities when done correctly. However, when done incorrectly, it can potentially lead to problems for the project, the sponsor, and/or donors. Fiscal sponsorship is essentially a contractual relationship that allows charitable activities to be carried out by an entity that is not itself tax-exempt, but with the benefit of the tax-exempt status of a sponsor. In other words, it is when a nonprofit sponsors a non-tax-exempt project.
Fiscal sponsorship can take on many forms, but the most common are (1) comprehensive (sometimes referred to as Model A), where the project becomes an internal program of the fiscal sponsor and (2) preapproved grant relationship (sometimes referred to as Model C), where the project remains a separate entity, but the fiscal sponsor agrees to make grants to it for a specific restricted purpose. In this webinar, we’ll talk about each of these models of fiscal sponsorship, including their benefits, when they may be most useful, and some potential issues to watch out for.
Please join Erin Bradrick as she discusses the basics of fiscal sponsorship and some of the most common models that are used.
WHAT YOU’LL LEARN
Just a sampling of what this webinar will cover:
- An understanding of the basics of fiscal sponsorship
- The distinction between two of the most common forms of fiscal sponsorship – comprehensive and preapproved grant relationship
- Some of the issues to look out for when forming a fiscal sponsorship relationship
YOUR CONFERENCE LEADER
Your conference leader for “Fiscal Sponsorship: Benefits, Risks and Essential Guidance for Nonprofits ” is Erin Bradrick is senior counsel at NEO Law Group and a regular contributor to the Nonprofit Law Blog, The Nonprofit Quarterly, and the Daily Journal. Erin’s practice focuses on corporate, governance, charitable trust, and tax matters solely for nonprofit and exempt organizations. She has worked with many types of exempt entities, including public charities, private foundations, social welfare organizations, business leagues, social clubs, churches, and schools. Erin has experience working on a broad range of matters, including nonprofit formations, fiscal sponsorship, foreign and domestic grant making, earned income and the unrelated business income tax (UBIT), lobbying and advocacy activities, collective impact models, executive compensation and excess benefit transactions, donor advised funds, private benefit and private inurement matters, chapter and affiliation structures, mergers and acquisitions, and dissolutions. She also conducts trainings for nonprofit boards of directors on a range of governance issues and speaks on nonprofit legal issues to various audiences.
Prior to joining NEO Law Group, Erin was a litigation associate with Simpson Thacher & Bartlett LLP, where she worked on a number of complex commercial litigation matters. In addition, Erin clerked for the Honorable Dana M. Sabraw in the United States District Court for the Southern District of California. She also currently serves on the board of directors of the YWCA of San Francisco & Marin. Erin is a graduate of UCLA, summa cum laude in women’s studies and political science, and Yale Law School, where she was submissions director and symposium coordinator of the Yale Journal of Law and Feminism. She is admitted to practice law in the states of California and New York.