Fiscal sponsorship with Community Partners may end for a variety of reasons, including:
- The project is becoming an independent 501(c)(3) organization
- The project has accomplished its activities and has decided not to continue the work
- The Project Leader has decided to end the project due to personal reasons and they have not identified a new Project Leader or successor organization
- The project did not attract enough financial support to accomplish objectives or achieve enough programmatic momentum
- The project is moving to another fiscal sponsor or merging with another nonprofit agency
- The project did not adhere to the terms of the fiscal sponsorship agreement and policies (this is extremely rare)
Transferring a Project
When a project is transferring to another 501(c)(3), Community Partners board of directors will approve the separation of the project. Community Partners will then prepare a Project Separation Agreement to be signed by the Project Leader and an authorized signer of the successor organization.
Assets and liabilities will be transferred when the successor organization has provided its tax-exempt designation from the IRS and the separation paperwork is complete. Cash transfers, if applicable, will occur within six weeks from when the Project Separation Agreement is executed and all project contracts and grant obligations have been finalized. All employees of the project will be terminated by Community Partners and their re-employment will be at the discretion of the successor organization. When (and only when) the separation is complete, the successor organization may then carry on the mission of the project or fundraise in its name.
Ending a Project
If your project is ending and is not being transferred to another organization, a Project Separation Agreement must still be signed. In the absence of a written grant agreement expressly limiting the funds for the accomplishment of a specific purpose, Community Partners will not refund any money or other assets to contributors, per IRS guidelines. Instead, Community Partners, at the discretion of the board of directors, will use project funds to pay any remaining obligations of the project. Any additional funds in the project account will be transferred, in consultation with the Project Leader, to a charitable or grantmaking institution that will commit to disbursing the funds for charitable purposes similar to those of the project.
Please contact your program liaison if you wish to end your fiscal sponsorship.
Please note: The administrative charge applied to project revenues by Community Partners is assessed immediately upon their receipt and is not refundable upon termination of the relationship.