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Feb 03
2012
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A fiscal sponsor gone badPosted by fraser in Untagged |
We have offered to serve as a fiscal sponsor for a handful of agencies over the year, and we have been pleased to do so. Its a tricky business since we are in essence giving use of our coveted nonprofit status to another group. But it we understand that not everyone needs a 501 c 3 and for those that do, the approval may be long in coming.
Some organizations are too small, or do not have the financial capacity to ever gain their own entity, and there are organizations who specialize in providing those people and their work a fiscal sponsorship. The Tides Foundation has a great service, and there are some national standards. Of course, not everyone follows them.
Here is a scary article about one such entity that may have stolen more than $1 million from small organizations across the US. It makes me wonder what services we should provide in this area - and reminds me of how important keeping an eye on the bottom line is in these troubling times, even when we think we know and trust our partners.

