FAQ

A fiscal sponsor is a non-profit organization that offers its financial and administrative services to mission-aligned projects. The project can receive donations and grants through this arrangement. To partner with a fiscal sponsor, there must be a high degree of mission-alignment. Fiscal sponsorship can take several forms. At CS&S, we specialize in comprehensive fiscal sponsorship. In this model, a project becomes a part of CS&S and we provide administrative and financial support to the project. Fiscal sponsors charge fees to cover their operational costs. At CS&S, our fiscal sponsorship fee is 15% of all cash that the project receives.

• What is the size of the project budget and approximate volume of transactions (money in and money out) for your project? The higher the volume and greater the variety of anticipated transactions, the more complex your project is. If you scope out a more complex project, then you may want a larger or more established fiscal sponsor who won't get tripped up by your operational needs.
  

• Timely payments! Everyone likes to be paid on time. Look into this by talking to current projects. Ask about payments to staff and vendors.
  
  
• Do you need to host full time employees in the US? In other countries?
  
  
• What are your key liability coverage needs - volunteers? contracts? other items?
  
  
• Do you anticipate generating intellectual property that you'll need to manage? We hold copyright and IP for projects, as even for open source software things may need to be defended. Figuring out how a fiscal sponsor handles IP and copyright - especially if you might develop software tools - is a good thing to do up front.
  
  
• What types of funders will you work with? Are you anticipating corporate donations? Grants? Federal funds? Asking about the fiscal sponsor's expertise and contacts within different funding worlds is always good.

• What kinds of projects an organization wishes to sponsor. Do they have a limited scope in determining who to support?
  

• What is the application process and time-line? Ensure that it aligns with any deadlines or constraints your project will have.
  
  
• What are their costs and fee structures? How high are their fiscal sponsorship fees? Is it a fixed fee structure, or does the organization use sliding scales?
  
  
• What is included with the fiscal sponsorship fee? It’s important to make sure that financial administration, bookkeeping, and reporting is covered in the overhead costs you’re paying.
  
  
• What does the accounts payable process look like for a sponsored project? Are there any limitations in hiring domestic or international employees and contractors? Is it possible to make small payments or honoraria? How long does it typically take to reimburse invoices?
  
  
• Whare are their limitations on crowdfunding, accepting donations, or working with volunteer labor, if any? Some fiscal sponsors do not host projects with government funding. Government grants have a high operational load due to their extensive requirements.
  
  
• What legal support do they provide (e.g. liability insurance coverage, IP and copyright policies)?
  
  
• What does the onboarding process look like? What should my project expect when first starting out with a fiscal sponsor.
  
  
• What does the offboarding process loos like? Does the fiscal sponsor provide support for a project interested in becoming a non-profit or independent organization?
  
• What are the experiences of other projects who have been sponsored by an organization you’re interested in working with? Connecting with other projects will allow you to gain a better understanding of whether your project is a good fit in working with a certain sponsor.

CS&S offers an engaged, hands-on approach to fiscal sponsorship. Our Fiscally Sponsored Projects (FSP) team is committed to helping our projects define and achieve their goals. This can mean providing support in fundraising, hiring, budgeting, governance and more. Our FSP team remains involved with our projects through every step in their growth. We support from the grant proposal stage to supporting a project's spin out to an independent 501(c)(3). Our guiding questions for our projects are: “Where do you want to be? How can we help you get there?”

We understand that organizational capacity is key to a successful organization. Our FSP team is backed by a full Operations and Finance team. Project's focus on their core work, handing off operational tasks to CS&S. Our services include:

• Financial administration and operations support: Comprehensive financial management, tax and reporting compliance, grant management, contract management, basic legal services, insurance coverage
  
  
• Strategic consultations: Sustainable growth, governance, fundraising, governance, equity and inclusion, leadership development, team management
  
  
• Community resources: Templates and docs to make process and governance development easier, invited speakers and workshops (often in collaboration with our Event Fund and Digital Infrastructure Incubator) on topics related to public interest technology.

• Mission Alignment. Our mission is to “advance the power of data to improve the social and economic lives of all people through public education, scientific research, and technology development and deployment.” To create programs that support our mission, we begin by asking questions. Who do today’s current data practices and technologies serve? How do different communities experience and access education, research, data, and technology? What is the influence of the history of white supremacy in research and technology? When we engage in research and education, what cultural biases might be along for the ride? In using the tools of technology and data to improve “the lives of all people”, what power hierarchies exist that can be reinforced by these tools?
  
  By exploring questions like these, we see beyond reliance tools or practices. Data, software, research, and education can not stand alone to improve lives in an equitable way. Cultural practices and social infrastructure are often overlooked in scientific and technical spaces. We focus on social and organizational structures that support research, education, and technology. This approach will build an ecosystem of research, education, and technology that centers people.

• Governance. Projects must have an advisory committee consisting of at least 3 people. The project’s advisory committee will sign CS&S’ fiscal sponsorship agreement. This committee's role is oversight. As such, the majority of the people on the committee must be independent advisors who are not paid by the project. This committee also supervises and approves the pay of the project director.
  
  We look for inclusive practices and diverse community representation in project advisory committees. It is also important to CS&S that the advisory committee functions and supports the goals of the project. In other words, a smaller committee that effectively supports the project is better than a large committee that never meets. We are not prescriptive about the precise structure of this governing body. Projects decide on the decision making model that works for them. Projects are free to engage the participants who make the most sense to their work to build a committee.

• Needs and Services Match. Fiscal sponsorship is a big commitment on all sides. Anyone exploring fiscal sponsorship should articulate their project's operational needs. We advise that prospective projects speak to several fiscal sponsors. When you speak to our team, we’ll want to discuss your budget, reviewing the anticipated expenses and revenues. We’ll want to hear about any events you plan to run, volunteer communities, and partnerships you’re engaged in. If you have worked with a fiscal sponsor in the past, we will ask about the pain points in that partnership. Our goal is to give you all the information you need to find the right fiscal host for your work.

• Complete our New Project Inquiry Form.
  
  

• After reviewing your form, our team will reach out to you to schedule a call with the FSP program staff. We use this call to discuss your group’s needs and how you envision your growth at CS&S. If we feel that your project is a good fit, we will invite you to submit a formal application for the CS&S Board of Directors.
  
  • We recommend that all prospective FSPs research multiple fiscal sponsors to find one that best matches their needs.
    
    
• The Executive Director and the FSP team will work with your project to develop your application materials.
  
  
• After your application has been submitted to the board, the board will review it and provide your group with any feedback or action items to do before they can approve the application.
  
  
• Once your application is approved by the board, CS&S will send the CSS Fiscal Sponsorship Model Agreement and the Sponsorship policies agreement to your group’s advisory committee.
  
  
• Once we have received your signed agreements, your project is officially part of the CS&S team!
  
  
• After you become an official CS&S project, we begin the onboarding process. We work closely with you to develop your governance, budget your project’s financials, set strategic goals, etc. We know that areas are dynamic, and we return to them throughout your time with us.
  
  
• For our fiscal sponsorship agreements, please see our resources tab.

The timeline to becoming a CS&S project depends on many factors. Here are some common things that can affect the timeline:

• Compiling the board application materials. Ex: The project must have an advisory committee of at least 3 people. If they do not already have one, it may take time to recruit committee members.
  
  
• Transfer from another fiscal host. Ex: Transferring assets from one fiscal sponsor to CS&S may require legal review of transfer agreements and communication with funders.
  
  
• Projects in the CS&S pipeline. CS&S continues to grow each year. Some seasons are busy, and we may have other projects in the onboarding process, limiting our ability to take on additional work.
  
  
• Fiscally sponsored projects are approved by the CS&S Board of Directors. Our board requires 30 days to review a completed application. Prospective FSPs should allow themselves enough time to recruit an advisory committee, compile an application, and address suggested edits to their application from CS&S. Projects should complete the inquiry form at least 60 days before they would like to join CS&S.