Model A

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Comprehensive (Model A) Fiscal Sponsorship

Below is an overview of the Comprehensive (Model A) Fiscal Sponsorship. We are happy to discuss your program or organization’s interest to help determine which model may be best for you.

ESI’s primary focus is on Comprehensive Fiscal Sponsorship, also known as Model A Fiscal Sponsorship. In this model, the fiscally-sponsored partner becomes a program of the fiscal sponsor and is a fully integrated part of the fiscal sponsor.

In this model, partners are encouraged to have their own steering committee or advisory board but are governed by the ESI Board of Directors, as programs of ESI. As the legal, tax-exempt entity under which the partner operates, ESI is the legal party and signatory to all contracts entered into on behalf of the project, including grant agreements.

Bottom line: ESI takes care of all of the required legal, financial, and human resource necessities allowing our partners to focus on the work they do.

How to Apply

Services

In general, ESI provides the following to Model A partners:

501(c)(3) tax-exempt status for grant eligibility and tax-deductible donations
Tax receipts for donations greater than $250

Built-in infrastructure

Payroll processing and administration of a comprehensive benefits plan for partner employees
Banking and cash management
Assistance with the development of an annual operating budget
Processing of all incoming revenue
Annual audit and IRS Form 990 tax return (if the sponsored partner is the recipient of federal funding at a level that triggers a single audit, additional fees will be assessed to the partner)
General liability insurance and certificate of coverage (by request) for up to $x per occurrence and $x in aggregate (for any insurance coverage specific to the partner, that cost will be assessed to the partner).

Expertise in nonprofit operations

Accounting and financial reporting, including monthly operating reports and financial reporting for grants
Grant and contract management support

Expertise in requirements of government funds

Grant and contract management support of government grants and contracts
Public records management support, if required
All relevant, regular state and local governmental filings

A leadership network

Leaders of each partnership meet regularly to exchange ideas

Additional services

In addition to the above services which are included in the base fiscal sponsorship cost, ESI can upon request provide additional services at the partner’s cost including but not limited to discounted software licenses and IT support.

Sponsorship Length

Model A partnerships can be long-term and indefinite, with ongoing fiduciary, administrative and governance support. Partners can also be finite in duration, while the partner works on securing its 501(c)(3) tax exemption and builds capacity. Preference is for partners committed to operating as a sponsored partner for at least two to three years, but we are glad to discuss your specific goals.

Fiscal Sponsorship Costs

ESI’s operating costs are shared among its partners, thereby creating economies of scale. For Model A partners, costs are assessed monthly as a percentage of the sponsored partner’s revenue. The base cost is 10% of sponsored partner revenue, and due to the complexity involved, an additional 5% is assessed on revenue from government grants and contracts. Additional costs may be assessed for services outside our normal scope.

Work with Us

We welcome the opportunity to discuss sponsorship with you to better understand the possibility and potential of working together.