About Fiscal Sponsorship
How Our Fiscal Sponsorship Program Works
The Rose Foundation executes a fiscal sponsorship grant agreement with select projects. Donations earmarked for a project operating under Rose's sponsorship are actually given to the Foundation. This allows donors to receive the full benefits of making a charitable donation. Rose then places the donations in a special restricted fund dedicated to the project.
Governed by the fiscal sponsorship grant agreement, Rose uses the restricted fund to disburse grants to the project. The project provides regular reports to document its activities and expenditures. To defray the expenses associated with administering fiscal sponsorship, the Foundation charges a 7% on all fiscal sponsorship donations received. Because of the significantly increased complexities of administering governmental grants and contracts, the Foundation charges a 10% fee on government grants.
Legally, the project is a separate entity from Rose. The project owns its own work product, and intellectual and tangible property. It hires and supervises its own staff, and is responsible for direct financial management. This requires each project to develop the capacity to take responsibility for its own administration, direction and destiny.
Facilitate Tax-Deductible Support
The Rose Foundation's primary role is to facilitate charitable support for the project. To enable charitable support, Rose creates a special restricted fund for the sole purpose of funding the project's activities. Rose executes a grant agreement with the project specifying that all funds received by Rose will be granted to the project as long as the project meets all obligations of the grant agreement and those imposed by funders. Rose assumes liability to the funding source (typically executing a grant agreement with the funder) that the work will be substantially carried out as described in the grant application. Since the project is not a 501(c)(3), Rose assumes liability to the IRS for the charitable nature of the activities. However, the project is responsible for its own tax filings.
Build Project's Organizational Capacity
Rose's secondary role is that of consultant, coach and resource.
Some examples of services offered by Rose:
If a project needs advice in building a board or conducting strategic planning, Rose has extensive experience in these areas.
Rose is ready to play a mentoring role in fundraising. We can help develop a fundraising plan, target foundations and provide constructive criticism on draft proposals, though we won't generate specific fundraising materials.
Many projects need help setting up accounting procedures. Rose provides practical fiscal management advice that is geared to the size and scope of the project.
Rose offers access to our network of specialist providers – we can refer to CPAs, development and management consultants, graphic specialists, retirement plans, insurance providers and other resource providers who specialize in meeting the needs of nonprofits.