Fiscally sponsored projects operate under the corporate umbrella of Community Partners, a qualified public charity, which allows each project to receive tax-exempt donations. Projects operating under fiscal sponsorship receive complete infrastructure support and the advice and counsel of dedicated program staff.
Community Partners' financial and administrative staff process all transactions, manage all project funds, and execute all contracts and agreements. Projects benefit from Community Partners’ general liability insurance coverage and access to certain group benefits and payroll services.
Fiscal sponsorship with Community Partners includes:
- Nonprofit umbrella: As an integral part of Community Partners, your project operates under the auspices of a nonprofit charity exempt from federal and state income tax under section 501(c)(3) of the Internal Revenue Code and applicable sections of the California tax code.
- Acceptance of tax-deductible contributions: Contributions made to Community Partners for the benefit of your project are tax deductible to the full extent allowable by law.
- Programmatic counsel: Community Partners’ program staff counsel and coach project leaders on a wide range of resource development, project management, program planning, and technical issues.
- Support for grant proposals: Community Partners’ program staff review grant proposals developed by project leaders and send endorsement letters to foundations and potential funders explaining Community Partners’ relationship with the project and expressing support.
- Audit and tax filings: Community Partners handles all required federal and state tax filings and produces one unified financial audit prepared by an independent accounting firm.
- Financial infrastructure: Community Partners administers project finances, including handling all monetary transactions (cash receipts, cash disbursements) and signing all contracts, legal agreements, and financial documents.
- Employee benefits and payroll: Community Partners employs project personnel and guides their work through a standard set of personnel policies and augments their employment with a standard benefits package. Community Partners handles all payroll services and the administration of benefits, including group medical, dental, life, and long-term disability insurance, and retirement plans. Out of funds raised for the project’s purposes, Community Partners pays the employer’s share of personnel costs including Social Security taxes, unemployment insurance, workers’ compensation insurance, and all employee benefits.
- Insurance: Community Partners’ general liability insurance policy covers most project activities. Community Partners obtains additional insurance coverage as necessary for such things as special liability, events, and rented premises. These costs are charged directly to the project.