Community Venture Partners provides a range of fiscal sponsorship services for organizations working on projects and initiatives that align with CVP's charitable, tax exempt purposes.
What is Fiscal Sponsorship?
Fiscal sponsorship occurs when a registered nonprofit organization agrees to "sponsor" an activity or initiative of a third party organization. Fiscal sponsorship allows donations and gifts to the sponsored entity's project to be tax deductible to their donors. Fiscal sponsorship is often used to incubate new initiatives during a time when that organization is applying for nonprofit status.
How it works
CVP offers fiscal sponsorship to qualified nonprofit and for profit initiatives in order to advance our tax exempt purposes. Under a fiscal sponsorship arrangement CVP enters into a pre-approved grant relationship with the sponsored entity for a specific project, initiative or activity. Donations to the organization's project are then tax deductible to the extent permitted by law. CVP does not sponsor entire organizations and all their activities, only specifically targeted activities and initiatives.
The sponsoree also benefits from CVPs established relationships in the planning, finance and development community, and the combined mentoring expertise of its principals and advisors. Sponsorship also allows local initiatives to commence actitivities immediately to address urgent and time sensitive local needs.
As fiscal sponsor, CVP receives and regrants funding, monitors spending, reviews project performance and other project oversight required. CVP receives an agreed upon administration fee for its services.
The following guidelines will govern the Fund’s proposed sponsorship activities:
The Fund will sponsor only to the following recipients:
Organizations exempt from federal income tax under Sections 501(c)(3) and 509(a)(1), (2), or (3) of the Internal Revenue Code;
Other organizations engaged in activities, projects or initiatives that are exclusively for charitable, scientific, or educational purposes, as defined by the Code, who are selected on a nondiscriminatory basis without regard to race, sex, religion, or national origin, and whose principals and officers are not related by blood or marriage to any officer or director of the Fund, with the Fund retaining discretion and control within the meaning of Rev. Rul. 68 489;
The Board of Directors of the Fund will select projects to sponsor whose proposed activities, in the sole judgment of the Board of Directors, will further the exempt purposes of the Fund.
Applying for Fiscal Sponsorship
Applications are only accepted electronically via email. The applicant for fiscal sponsorship should provide the following:
The legal name and type of entity making the application (with copies of its governing documents).
The names and titles of all principals, officers, directors, managers and / or key personnel.
A complete description of the initiative / project / organization. See our Fiscal Sponsorhip Application Template (below) for details.
CVP uses a "Model C" fiscal sponsorship relationship, as approved by the IRS, wherein any sponsored entity is a fully independent contractor and has no legal relationship with CVP other than CVP sponsoring its ability to seek tax deductible donations for a specific activity or project.
CVP does not sponsor individuals or their projects.
CVP does not sponsor an entire organization or all its operations, only a specific project or intiative of an organization that has a clearly defined timeline and end date.
Sponsored entities are required to sign a Fiscal Sponsorship Re-Granting Agreement. Please see the example below.