Fiscal Sponsorship Agreement Template: A Comprehensive Guide

A fiscal sponsorship agreement is a legal document that outlines the relationship between a non-profit organization (the fiscal sponsor) and a project or individual (the fiscally sponsored project or FSP) seeking financial support. The agreement typically covers the terms and conditions under which the fiscal sponsor will accept donations on behalf of the FSP and provide administrative and financial services.

Key Components of a Fiscal Sponsorship Agreement Template

1. Parties to the Agreement: Clearly identify the fiscal sponsor and the FSP. Include their full legal names and addresses.
2. Purpose of the Agreement: State the primary purpose of the FSP and the fiscal sponsor’s role in supporting it. This should align with the FSP’s mission and goals.
3. Term of the Agreement: Specify the duration of the agreement, whether it’s a fixed term or open-ended. Consider including renewal terms or conditions.
4. Financial Responsibilities:

Fundraising: Outline the FSP’s responsibility for raising funds and the fiscal sponsor’s role in providing administrative support.

Financial Reporting: Establish the frequency and format of financial reports that the FSP must submit to the fiscal sponsor.

Remittances: Determine how and when the fiscal sponsor will remit funds to the FSP, taking into account any applicable fees or expenses.

5. Administrative Services: Detail the administrative services that the fiscal sponsor will provide to the FSP, such as accounting, tax preparation, and insurance.
6. Intellectual Property: Address ownership and licensing of intellectual property created by the FSP.
7. Indemnification: Include provisions to protect both parties from liability arising from the agreement.
8. Termination: Specify the conditions under which either party can terminate the agreement and outline any post-termination obligations.
9. Governing Law: Indicate the jurisdiction that will govern the agreement in case of a dispute.
10. Signatures: Ensure that both parties sign the agreement to make it legally binding.

Design Elements for Professionalism and Trust

Clear and Concise Language: Use plain language that is easy to understand, avoiding legal jargon whenever possible.

Consistent Formatting: Employ a consistent format throughout the agreement, using headings, bullet points, and numbering to enhance readability.

Professional Layout: Choose a professional font and font size that is easy to read. Use appropriate margins and spacing to create a clean and organized appearance.

Legal Disclaimer: Include a disclaimer stating that the agreement is a general template and may not address all relevant legal issues. Encourage both parties to seek legal advice if necessary.

Review and Update: Regularly review and update the agreement to ensure that it remains accurate and reflects any changes in laws or regulations.

Additional Considerations

Insurance Requirements: Specify any insurance coverage that the FSP must maintain to protect the fiscal sponsor and its assets.

Conflict of Interest: Address potential conflicts of interest that may arise between the fiscal sponsor and the FSP.

Publicity and Branding: Outline the guidelines for public communications and branding to ensure that both parties’ reputations are protected.

Audit Rights: Grant the fiscal sponsor the right to conduct audits of the FSP’s financial records.

By carefully considering these elements and tailoring the agreement to the specific needs of the fiscal sponsor and the FSP, you can create a professional and legally sound document that establishes a solid foundation for a successful partnership.