Fiscal sponsorship, an arrangement between a 501(c)(3) tax-exempt nonprofit and a charitable project in which the nonprofit directs funds to advance the project while retaining discretion and control, drives a significant volume of charitable work seen in cities like Detroit. Many charitable projects, which include unincorporated associations and other nonprofits, find structure and guidance through a fiscal sponsorship. A fiscal sponsor generally accepts funds on a charitable project’s behalf, and provides fiduciary oversight, financial management, and administrative support to help ensure that the funds are properly spent. In addition, fiscal sponsors provide added access to grant funds and tax-deductible donations. While fiscal sponsorships can provide great value, they can also create distinct complications. In the domain of intellectual property, working with a fiscal sponsor raises some important considerations. Intellectual property includes anything created that is cove...
University of Michigan Law School Community Enterprise Clinic (CEC) Blog