Fiscal Sponsorships

The Collins Foundation accepts applications from 501(c)(3) fiscal sponsors engaging in mission-aligned work through or with a project that does not have its own 501(c)(3) public charity tax status. Additionally, a 501(c)(3) organization may choose to work with a fiscal sponsor for assistance in managing funds and other administrative aspects. We require a fiscal sponsorship agreement in both cases. The Foundation does not fund individuals through a fiscal sponsor relationship.

Groups, both sponsors and projects, enter into fiscal sponsorship arrangements for a range of reasons; high among them are usually operating efficiency and the ability to access institutional funders before a sponsored organization is fully established. If funded, the sponsor organization will be the grant recipient. The sponsor organization is responsible for executing the grant agreement, exercising discretion and control over awarded funds, and monitoring the project's program and finances.

Fiscal Sponsorship Application Process

● To be eligible to apply for a BEM General Operations Grant for Fiscally Sponsored Projects, either the sponsor organization or the sponsored project must send a signed and current fiscal sponsorship agreement to the Grants Manager,  Leann Do, at ldo@collinsfoundation.org.

● The Grants Manager will review the agreement and follow up with questions, if any. Applicants should plan to send their agreement to the Grants Manager at least three weeks before the BEM submission deadline on Tuesday, September 10th, 11:59 pm.

● Once the agreement has been reviewed and approved, the Grants Manager will notify the sponsored project that they are eligible to submit an application and will send them a link to the application.

Our guidelines for fiscal sponsorship agreements require the  following provisions:

● An acknowledgment that the charitable mission of the sponsor and the charitable mission of the sponsored project are aligned. The Foundation prefers that the alignment of charitable mission for the sponsored project be acknowledged by the sponsor’s board of Directors.  

● A statement verifying that the sponsor retains full discretion and control over the use of funds and is not legally obligated to distribute funds to the sponsored project.

● A statement about how funds will be managed upon termination of the fiscal sponsorship agreement or dissolution of the project and/or sponsor organization.

In addition, the following items should be addressed in the agreement or  supporting documents:

● Information about how the sponsor organization will hold and track funds on behalf of the sponsored project and how the sponsored project can access those funds.  

● Restrictions on use of funds for lobbying or political activity.

● Information about which organization is responsible for:

○ Fundraising and submitting grant applications to funding organizations

○ Submitting interim and final reports to the Foundation or other funders

○ Filing all required tax and reporting returns

○ Record retention

Depending on the nature of the project, the agreement may also address  the following:

● Administrative fee, if any, charged by the sponsor organization.

● How disputes are resolved.

● Information about ownership of intellectual property, equipment, and    

   other assets.

● Information about insurance for the sponsored project.

● Employment relationships, if any, between the sponsor and sponsored project.

Fiscal sponsorship resources:

● The Nonprofit Association of Oregon

● Propel Nonprofits