This section provides answers to common questions about fiscal sponsorship with The Nunnally Foundation. If your question is not addressed here, please feel free to contact us directly.
Q1: What is fiscal sponsorship?
A1: Fiscal sponsorship is a formal arrangement in which a 501(c)(3) tax-exempt organization (the "fiscal sponsor") lends its legal and tax-exempt status to groups or projects that do not have their own. This allows the sponsored project to receive grants and tax-deductible donations under the fiscal sponsor's charitable umbrella.
Q2: What type of fiscal sponsorship model do you offer?
A2: The Nunnally Foundation exclusively utilize **Model C: Pre-Approved Grant Relationship Fiscal Sponsorship**. This model means that while we receive and manage funds on behalf of your project, you, as the project leader, maintain full operational control over your program's day-to-day activities. We provide the essential financial and administrative stewardship, and then re-grant funds to your independent project.
Q3: What are the primary benefits of fiscal sponsorship for my project?
A3: Choosing fiscal sponsorship with us provides numerous advantages, including immediate access to 501(c)(3) status for fundraising, enhanced credibility with donors and grantmakers, professional financial management of your project's funds, streamlined IRS compliance and reporting, and crucial operational autonomy so you can focus on your mission.
Q4: Is fiscal sponsorship suitable for both new and established projects?
A4: While our service is particularly beneficial for nascent projects looking to quickly gain tax-exempt fundraising capabilities without the lengthy process of obtaining their own 501(c)(3) status, it can also benefit more established projects that prefer to outsource their financial and administrative compliance to focus solely on programmatic work.
Category 2: Eligibility and Application Process
Eligibility and Application Process
Q5: What types of projects does The Nunnally Foundations sponsor?
A5: We sponsor projects through two distinct entities: The Nunnally Foundation, Inc.: Focuses on faith-based initiatives, community outreach programs, and other benevolent endeavors rooted in spiritual or communal values. New-HUD, Inc. (Nunnally Enterprises Working in Housing and Urban Development):** Focuses on projects addressing housing affordability, urban revitalization, homelessness solutions, and broader community development. All projects must have a clear charitable purpose.
Q6: Can projects with their own 501(c)(3) status be sponsored?
A6: Our Model C fiscal sponsorship is primarily designed for projects that do not yet possess their own 501(c)(3) determination. Projects with existing 501(c)(3) status typically engage in different types of partnerships or fee-for-service arrangements, which fall outside the scope of our Model C offering.
Q7: How long does the application process take?
A7: The duration of the application process varies depending on the completeness of your submitted Project Proposal (Exhibit A) and the responsiveness to any follow-up questions. Once a complete proposal is received, our Board of Directors typically reviews applications within [e.g., 2-4 weeks].
Q8: What are the key requirements for a project to be considered?
A8: Key requirements include demonstrating a clear charitable purpose aligned with our mission, operational independence, strong leadership, a viable plan for activities and funding, and a commitment to legal compliance. Please refer to our dedicated "For Faith-Based Projects" or "For Housing & Urban Development Projects" pages for detailed eligibility criteria.
Category 3: Financials and Fees
Financials and Fees
Q9: How much does fiscal sponsorship cost?
A9: To cover the costs associated with financial management, compliance oversight, and administrative support, The Nunnally Foundations applies a competitive administrative fee of [e.g., X%] to all funds received on behalf of your sponsored project. This fee is clearly outlined in our Fiscal Sponsorship Agreement.
Q10: How are donations processed and acknowledged?
A10: All donations received for your project will be processed directly by The Nunnally Foundations. We will issue all official IRS-compliant tax receipts to donors in our name, acknowledging their contribution to a 501(c)(3) organization for the benefit of your project.
Q11: How will my project receive its funds?
A11: Funds will be disbursed to your project through re-grants from The Nunnally Foundations, based on agreed-upon schedules, approved budgets, and regular reporting. The specifics will be detailed in your Fiscal Sponsorship Agreement.
Category 4: Operations and Compliance
Operations and Compliance
Q12: Will The Nunnally Foundations dictate my project's daily operations?
A12: No. Under our Model C, your project retains full operational autonomy. You are responsible for the day-to-day management, program delivery, staffing, and creative direction. Our role is one of supportive fiscal oversight, ensuring compliance and proper fund utilization.
Q13: What kind of reporting will my project need to provide?
A13: To ensure transparency and compliance, sponsored projects are required to submit periodic programmatic and financial reports. The specific reporting requirements will be clearly outlined in your Fiscal Sponsorship Agreement (Exhibit B).
Q14: Who is legally responsible for my project's activities?
A14: As an independent entity, your sponsored project retains primary legal responsibility for its own operations, activities, and any associated liabilities. The Nunnally Foundations' liability is primarily related to the proper stewardship and charitable use of the funds we manage on your behalf.
Q15: What does "Maximum Autonomy" mean for sponsored projects under your Model C?
A15: "Maximum autonomy" signifies that your project, as an independent entity, retains full control over its **day-to-day operations, programmatic development, staffing decisions (e.g., hiring independent contractors, managing volunteers), and creative direction.** Unlike other fiscal sponsorship models where projects operate as internal programs of the sponsor, our Model C allows you to execute your mission with significant independence. The Nunnally Foundations' role is one of strategic **fiscal oversight and compliance assurance** (managing funds, issuing tax receipts, ensuring charitable use, and IRS reporting), not direct operational management. This structure empowers your leadership to drive your project's impact while we handle the essential administrative and legal backbone.