Fiscal Sponsorship

The Chaffee County Community Foundation may choose to provide fiscal and project sponsorship for the charitable activities of others when it determines that the accomplishment of those activities furthers the Foundation’s tax-exempt purposes. 

The mission of CCCF is to act as a catalyst to inspire positive change through the power of philanthropy to enrich the lives of all people in Chaffee County. All fiscal sponsor applicants will be considered based on their connection to our mission.

What does Fiscal Sponsorship look like?:

PRe-Approved Grantee Relationship

Example: A new organization operates a coffee shop to offer workforce development training but has not secured their 501(c)(3) status from the IRS. They have their own point of service system to accept payments for coffee but would like to pursue grant funding to expand their training program. CCCF could create a fund that accepts donations for training program. The funds would be disbursed to the applicant under a restricted grant agreement that allows the funding to be used specifically for training. The project is owned by the grantee. Project assets and liabilities belong to the grantee, who is responsible for its own tax filings.

Comprehensive Sponsorship

Example: In the comprehensive model, CCCF will pay all vendors and expenses directly, be the signer on all contracts and any project employees will be employees of CCCF. The project advisory committee will be responsible for strategic planning for the project, measuring progress and generating reports on any restricted funding received for the project. The project gives up all legal ownership and fiduciary control of the project. Under a comprehensive model, CCCF assumes the assets and liabilities of the project

Forms:

Frequently Asked Questions:

What process do I need to go through to apply for Fiscal Sponsorship?

  • First reach out to CCCF to discuss the potential project

  • If the project feels like it fits into the mission of CCCF, you will then create a proposal as outlined in the Fiscal Sponsorship Policy 

  • The appropriate Committees and or full Board will review the proposal and get back with the applicant

  • If the application is approved, the project and CCCF will enter into a signed agreement that formalizes the terms and conditions of the relationship

What does it cost to be fiscally sponsored by CCCF?

  • The cost varies depending on the type of fiscal sponsorship as well as the level of involvement of CCCF Board and Staff. 

  • Please reach out to CCCF for a current board approved fee schedule.

What are the perks of being a fiscally sponsored project?

  • Under fiscal sponsorship, your project is able to apply for funds that are solely allowed to be accessed by organizations that have 501c3 status. 

  • Donors are able to make tax deductible contributions to your project.

  • Fiscal sponsorees receive support and guidance to achieve nonprofit management and governance best practices in their first year.

What is required or fiscal sponsorees?

CCCF is committed to strong financial management of charitable dollars, transparency and effective operations of all programs, including the fiscal sponsorship of organizations. The following checklist will help CCCF provide resources to each of the fiscal sponsorees while ensuring nonprofit management best practices are built into their operations. CCCF will provide support to the sponsored board as they move through the phases. 

Launching Phase: Months 1-6 

Within the first three months of being adopted as a fiscal sponsoree, the sponsoree’s advisory board commits to having the following components in place. 

● Board attends an initial information session on the fiscal sponsorship program with CCCF staffto review program and fiscal procedures. 

● Board members attend/watch the Board Member 101 Workshop. 

● Board members read the Principles & Practices of Nonprofit Management. 

● Board Chair attends/watches the Board Chair 101 Workshop. 

● Board completes the attached checklist and creates a plan with CCCF to fulfill all items during the 2nd phase. 

● Legal review: Once the checklist items are complete, work with CCCF to ensure all insurance and legal frameworks are in place to conduct the proposed activities. 

Checklist: 

  • Board Approved Operating Budget (minimum 1 year of operations): Expected revenues and expenses 

  • Bylaws 

  • Annual Operating/Program Plan: Expected activities, timeframe and impact for the year. 

  • Strategic Plan: 2-3 year plan that defines how the organization will pursue its mission. 

  • Program narrative for core programs. 

  • Development Plan: Detailed plan of what activities the organization will undertake to achieve the budgeted revenue. 

  • Risk Management Policies and Procedures applicable to program activities 

  • Personnel Plan 

Building Phase: Months 6-12 

During the next six months of fiscal sponsorship, CCCF will work with the sponsoree’s board to ensure all launching checklist items are in place. This may include referrals to existing resources, trainings, templates and more. 

  • Board makes steady progress on fulfilling the checklist. 

  • CCCF attends board meetings as a guest, when needed, to provide guidance and support. 

  • At each board meeting, the board reviews and approves the following reports: ○ Financial: Profit & Loss, Balance Sheet, Budget to Actual 

  • Operating/Program Plan: Progress on programs and impact benchmarks 

  • Development: Progress toward revenue generating activities and benchmarks 

  • Minutes: Approve previous meeting minutes and document current meeting minutes. 

Established Phase: Months 12+ 

A fiscal sponsoree will move into the established phase when the following criteria are met: 

  • Launching checklist complete 

  • Board Meetings meet minimum criteria of reviewing all reports on a quarterly basis. 

  • 85% of financial, program and development goals are met. 

  • One year of financials published on a public access site. 

Do i need to file taxes?

  • CCCF manages all of the nonprofit required tax reporting for comprehensive fiscal sponsorees. Pre-Approved Grant entities will need to file business taxes.

What do the fees cover?

  • Comprehensive: Tax reporting, bookkeeping, processing revenue and expenses, tax receipts to donors, and support as needed with grant applications and reporting 

  • Pre-approved Grant Relationship: Tax receipts to donors, support as needed with grant applications and reporting