ABC Sample NonProfit Organization
Sample Fiscal Sponsorship Agreement
This Fiscal Sponsorship Agreement (Agreement) is made by and between the Sample NPO (NPO)
(Sponsor), and the Sample NPO2 (NPO2). Sponsor is a Wisconsin nonprofit public benefit corporation
located in Madison, Wisconsin, qualified as exempt from federal income tax under Section 501(c)(3) of
the Internal Revenue Code (IRC). NPO2 is a nonprofit corporation based in Iowa City, Iowa. This
agreement is intended to be active during the period between NPO2's initial receipt of contributions
and its designation as a 501(c)(3) organization.
RECITALS
A. The Sponsor Board of Directors approved, on xx/xx/xxxx, the establishment of a fiscal sponsorship
agreement to facilitate the receipt of donations of cash and other property designated for support of
NPO2 and to make disbursements in furtherance of NPO2's mission to produce investigative
journalism in Iowa.
B. Sponsor desires to act as the fiscal sponsor of NPO2, by receiving assets and incurring liabilities
identified for NPO2 beginning on the effective date as defined in Paragraph 1, and using them to
pursue the objectives for which NPO2 is being established, which Sponsor's Board has determined
will further its charitable and educational goals. NPO2 desires to manage its activities on behalf of
Sponsor.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
1. Term of Agreement. On xx/xx/xxxx, Sponsor shall assume fiscal sponsorship of NPO2, which
operation shall continue in effect unless and until terminated as provided herein.
2. Activities and Sponsorship Policies. All community programs, public information work, fundraising
events, processing and acknowledgment of cash and noncash revenue items, accounts payable and
receivable, negotiation of leases and contracts, disbursement of NPO2 funds (including grants), and
other activities conducted by NPO2 shall be the ultimate responsibility of Sponsor and shall be
conducted in the name of Sponsor, beginning on the effective date.
3. Restricted Fund / Variance Power. Beginning on the effective date, Sponsor shall place all gifts,
grants, contributions, and other revenues received by Sponsor for the purposes of NPO2 into a
restricted fund to be used for the sole benefit of NPO2s mission as that mission may be defined by
NPO2 from time to time with the approval of Sponsor. The parties agree that all money, and the fair
market value of all property, in the restricted fund be reported as the income of NPO2, for both tax
purposes and for purposes of Sponsor's financial statements, unless this provision is amended by
both parties.
4. Performance of Charitable Purposes. All of the assets received by Sponsor under the terms of this
Agreement shall be devoted to the purposes of NPO2, within the tax-exempt purposes of Sponsor.
Expenditures for any attempt to influence legislation within the meaning of IRC Section 501(c)(3) shall
be subject to limitations imposed by Sponsor. Sponsor shall not use any portion of the assets to
participate or intervene in any political campaign on behalf of or in opposition to any candidate for
public office, to induce or encourage violations of law or public policy, to cause any private inurement
or improper private benefit to occur, nor to take any other action inconsistent with IRC Section
501(c)(3). Sponsor has determined, based on the advice of tax-exempt legal counsel, that the
