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y Responsibility for providing acknowledgments and receipts to donors;

y The extent to which the sponsoring organization, the sponsored
organization, and the project will be identified in promotional
materials;

y Clarification of employment and/or supervisory relationships for any
personnel involved in the project;

y Timing and nature of financial reports from the sponsoring
organization to the sponsored organization;

y Timing and nature of project reports from the sponsored organization
to the sponsoring organization;

y The amount of any administrative or other fees charged by the
sponsoring organization (either as a fixed fee or a percentage of funds
received);

y The duration of the fiscal sponsorship;

y Indemnification and insurance provisions; and

y Events of and remedies for default, including specifically the ability of
the sponsoring organization to cease making disbursements, demand
return of funds, or terminate the fiscal sponsorship arrangement if the
fiscal sponsorship conditions are not satisfied or if the sponsoring
organization’s tax-exempt status is in any way jeopardized by the
relationship with the sponsored organization.

For a discussion on whether to seek fiscal sponsorship for your organization,

see Chapter 3.

CHAPTER 60. Joint Ventures And Other Contractual Collaborations

Sometimes a donor may not want to just make a grant of funds to a

nonprofit organization, but nonetheless wants to collaborate with the organization
in furthering its charitable purpose. Or there may be an instance where
organizations with compatible missions desire to collaborate to further a charitable
purpose. One organization may be seeking financing or resources for an exempt-
related project and looking for different ways to attract private partners. There are
two basic models of collaboration: project-specific, where the two organizations

WASHINGTON NONPROFIT HANDBOOK -200- 2018