Fiscal Sponsorship Program Policy

Click here to download and print PDF of this Policy – NEED TO UPDATE POLICY ATTACHED

This policy describes important rules for the Queen Village Neighbors Association (“QVNA”) Fiscal Sponsorship Program. It applies only to QVNA, a group (“Group”) that has signed a Fiscal Sponsorship Agreement with QVNA (“Sponsorship Agreement”), and any grant issued to a Group under its signed Sponsorship Agreement (“Fiscal Sponsorship Grant”).

It does not apply to QVNA’s Community Grants Program, or grants to QVNA from the City of Philadelphia or the Commonwealth of Pennsylvania. This policy does not apply to situations when QVNA sponsors an event.

Note: QVNA’s Conflict of Interest Policy applies to fiscally sponsored groups.

For additional information on QVNA’s Fiscal Sponsorship Program, see Frequently Asked Questions (FAQ).

This Policy has the following sections:
I.    Sponsorship Agreements
II.   Direct Fundraising; Grants from Third Parties
III.  Reporting Requirements
IV.   Administration; Transitioning Funds

I. SPONSORSHIP AGREEMENTS

Sponsorship Agreements have one-year terms. Therefore, each agreement must be re-signed by both the Group and QVNA once a year.

If a person who signs the Sponsorship Agreement on behalf of a Group leaves during the term of the Sponsorship Agreement, the group must notify QVNA. The person’s replacement must sign an acknowledgement, indicating that the person has reviewed the Sponsorship Agreement and this Policy, and agrees to comply with both.

The Sponsorship Agreement shall be amended or modified only in writing signed by both parties.

II. DIRECT FUNDRAISING; GRANTS FROM THIRD PARTIES

A Group may solicit donations, gifts, and contributions for QVNA earmarked for the charitable purposes (collectively, “Donations”) described in the Group’s Action Plan that was approved by QVNA’s Board (the “Plan”). Donations so earmarked will be deposited in QVNA’s bank account (the “Account”).

  • All fundraising materials are subject to QVNA approval.
  • Groups may use web platform tools (e.g., website, social media, etc.), however, all online donations must be collected through a QVNA-controlled web platform hosted on QVNA.org.
  • Fundraising through physical mailings, printed flyers, in-person solicitations, and similar means should be limited to Pennsylvania.
  • If there will be a recurring or sizable Donation from a resident of another state, a Group should contact QVNA beforehand to discuss acceptance.
  • Donations will be promptly turned over to QVNA.

In addition to seeking Donations, a Group may seek grants from third parties (“Third-Party Grants”).

  1. QVNA’s approval is required for any application for a Third-Party Grant if amounts from the Third-Party Grant will be deposited in the Account, or if QVNA will otherwise be involved in any way in the Third-Party Grant. To request QVNA’s approval for a Third-Party Grant, a Group must provide QVNA with the following at least thirty (30) days before submitting the application:
    1. A full copy of the completed application package for the Third-Party Grant, and all supplemental materials required for the Third-Party Grant.
    2. A written statement of the state where the third-party grant maker is located.
    3. A written summary of all conditions and all reporting and other requirements imposed by the grant.
    4. Any other information or documentation as QVNA requests.
  1. No Group may apply for grants from third parties as QVNA, for grants that require QVNA to expend sums and be reimbursed, or for grants that impose obligations on QVNA.
  2. A Group may not apply for, or receive, grants from third parties under the tax-exempt status of any organization other than QVNA.

III. REPORTING REQUIREMENTS

Periodic updates are required from every Group. Specifically:

  1. If a person who signed the Sponsorship Agreement leaves the Group, the Group will promptly report the departure to QVNA. Any replacement will need to sign an acknowledgement as described in Section I.
  2. Many of the Groups fiscally sponsored by QVNA are unincorporated nonprofit associations. However, QVNA may fiscally sponsor nonprofit incorporated entities. A Group will promptly notify QVNA if its incorporation status changes, as well as if the Group applies to be recognized as tax-exempt by the IRS, the Pennsylvania Department of Revenue, or any other government authority.
  3. Each six months while the Sponsorship Agreement is in force, and promptly after any other time QVNA requests, each Group will submit a written report. The reports will be in the form requested by QVNA, and will have:
      1. An update on the Group’s progress in carrying out the Plan.
      2. Provide names and updated contact information of at least 3 people involved in the Group, with one such person being identified as the representative for communications with QVNA, and another being identified as the person who handles donations and monetary matters in connection with carrying out the Plan.
      3. Any other documentation reasonably requested by QVNA, including accounting or other backup showing how Fiscal Sponsorship Grants were expended, or documentation regarding tax filings.
      4. Any other information that QVNA requires.

     

 

  1. Written reports and notices required to be given by a Group in this Section may be made electronically, if sent to the address designated by QVNA at the time of the report or notice is made.
  2. QVNA is not required to approve a Request for Funds while reports required under this Policy remain outstanding.
  3. If a Group fails to submit a report within thirty (30) days of the applicable deadline, the group will become “Inactive.” If a Group is Inactive and does not provide outstanding report(s) within forty-five (45) days after QVNA notifies the group of the Inactive status in writing at the last address on record for a Group’s contact person, QVNA is entitled to terminate the Sponsorship Agreement and apply any remaining amounts consistent with the Sponsorship Agreement and this Policy.

IV. ADMINISTRATION; TRANSITION OF REMAINING MONEY

  1. If accepted by QVNA, Donations and grants earmarked for the purposes of the Plan will be deposited in a restricted account controlled by QVNA (“Account”).
    1. QVNA’s fiscal sponsorship only covers monetary donations and grants. QVNA has no obligation to accept in-kind donations or grants.
    2. QVNA reserves the right to reject amounts from a source objectionable or incompatible with QVNA’s mission, that creates a conflict of interest (or the appearance of a conflict of interest), that directly or indirectly imposes burdensome or objectionable conditions, or results from a solicitation or grant that does not comply with a Sponsorship Agreement.
    3. QVNA specifically reserves the right to reject a Donation (or to disapprove a grant application) if it would require QVNA to register as a charitable solicitor in another state.
  1. To receive money from the Account a Group will make a grant application called a “Request for Funds”. The Request for Funds will be written and on QVNA’s form. The Request for Funds will include all supporting documentation reasonably requested by QVNA, such as receipts or invoices.
  2. QVNA will review each Request for Funds. QVNA will use reasonable efforts to respond to a Request for Funds within five (5) business days. Such response may take the form of an approval, a denial, a request for more information, an acknowledgement of receipt, or more than one of the foregoing. QVNA is entitled to approve a Request for Funds in part and deny a Request for Funds in part.
  3. If a Request for Funds (or portion thereof) is approved, QVNA will issue a Fiscal Sponsorship Grant. QVNA will use reasonable efforts to cause a check or other payment on account of a Fiscal Sponsorship Grant to be made out within five (5) business days. If a Group would like payment to be issued directly to a third-party contractor, the Request for Funds must include a written invoice, proof of insurance, proof of licensure (if applicable), a W-9, and other information as QVNA may request.
  4. QVNA will maintain books and financial records for the Account in accordance with its customary accounting practices. QVNA will provide written acknowledgement of receipt of received amounts in writing consistent with QVNA’s policies. QVNA is not responsible for tax filings that a Group or its individual members may be required to make.
  5. All rights, title and other ownership in and to the results of the Plan, including tangible and intangible property and all income arising therefrom, belong to that Group.
  6. Upon request by QVNA, a Group shall obtain and maintain insurance. This insurance must be reasonably satisfactory to QVNA and will list QVNA as an additional insured with respect to any and all liability insurance, umbrella coverage, and automobile coverage. If the Group hires or obtains in-kind services from a contractor (e.g., electrical, building, mason, etc.) for a project in connection with the Plan, that individual or company must be licensed and insured. QVNA must receive a W9 and Certificate of Insurance before the project begins.
  7. If a Sponsorship Agreement is terminated or expires, QVNA and that Group will cooperate on a transition plan for money remaining in the Account. In all cases, QVNA will retain control of the Account, and that Group shall have no right to the disbursement of any Funds except through a Fiscal Sponsorship Grant. If any money remains in the Account for 6 months or more after the Sponsorship Agreement ends, including if QVNA and Group cannot agree on a transition plan, QVNA is entitled, at its option, to utilize the remaining money to achieve any goals consistent with the Plan, as may be determined in QVNA’s sole discretion, including by transferring the money to QVNA’s general fund.

 

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