A typical Fiscal Sponsorship agreement should include the following and be signed by executive staff from both organizations:
- A statement that the sponsored organization’s project is compatible or consistent with the sponsoring organization’s mission or purpose.
- A statement that the sponsor retains full discretion and control over the use of such funds and may redirect funds if necessary to a different beneficiary to accomplish the purpose of the program, if the sponsored organization cannot.
- A statement that the sponsoring organization is responsible for complying with the terms of the grant, and that they will provide oversight on the project and use of funds, to assure the funds are used for the designated charitable purposes.
- An explanation or detailing of fees charged by the fiscal sponsor.
- A clear definition of the structure and role of the sponsored organization’s board of directors (if any), project advisory group (if any), and staff members.
- Clearly defined “effective dates” for the agreement.