fiscal-sponsorship-agreement

name	fiscal-sponsorship-agreement
title	Fiscal Sponsorship Agreement
description	Drafts a Fiscal Sponsorship Agreement between a 501(c)(3) sponsor and an unincorporated or non-exempt project. Enforces IRS compliance via sponsor control, variance power, separate accounting, and donor substantiation under IRC § 170. Use when forming fiscal sponsorship arrangements, onboarding sponsored projects, or drafting charitable project funding agreements.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/fiscal-sponsorship-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	nonprofit
language	en
tags	["agreement","corporate","drafting","transactional"]

Fiscal Sponsorship Agreement

Drafts a Fiscal Sponsorship Agreement preserving the sponsor's 501(c)(3) status and donor deductibility while giving the project operational clarity.

Prerequisites

Gather before drafting:

1. Sponsor details — legal name, state, EIN, determination letter date
2. Project details — name, mission, planned activities, authorized representative(s)
3. Sponsorship model — Model A (comprehensive, assets transfer to sponsor) or Model C (pre-approved grant, project retains assets). This materially affects ownership and liability provisions
4. Financial terms — admin fee %, disbursement approval thresholds
5. Term — fixed or at-will; notice period (30–90 days)
6. IP allocation — sponsor-owned, project-retained, or shared with license-back
7. Fund disposition — named successor 501(c)(3) or sponsor-selected on termination

Quick Start

Draft in formal contract prose, numbered for cross-reference. Core sections:

1. Header & parties (names, EIN, effective date)
2. Recitals (exempt status, project mission nexus, model selection)
3. Sponsor responsibilities
4. Project responsibilities
5. Financial terms & fund management
6. Term, renewal & termination
7. Legal relationship & liability
8. Intellectual property
9. Compliance & records
10. Miscellaneous (governing law, disputes, severability, notices)
11. Signature block

Core Provisions

Sponsor Responsibilities

• Receive contributions into a named restricted fund with separate GAAP-compliant accounting
• Issue donor acknowledgment letters per IRC § 170(f)(8) for gifts >= $250
• Review and approve all project expenditures; retain ultimate disbursement discretion
• File required IRS and state informational returns covering project activity
• Carry general liability and D&O insurance with specified minimums

Non-waivable retained authority:

• Final approval over all budgets and expenditures
• Right to suspend/terminate activities jeopardizing exempt status
• Variance power to redirect funds if project purpose becomes impractical

Project Responsibilities

• Conduct activities consistent with sponsor's exempt purposes
• Submit expense requests with invoices and charitable-purpose explanation