Fiscally Sponsored Projects

Star Legacy Foundation disburses funds based upon paid receipts for project expenses or in some circumstances actually order or arrange for payment for particular situations.

The project solicits grants, gifts, or contributions to Star Legacy Foundation, earmarked for the Foundation’s restricted fund for this project.

An administrative charge of 10% of donations shall be deducted by Star Legacy Foundation to help share sponsorship costs amongst all the projects and to defray the Foundation’s direct costs of administering your project’s sponsorship.

The fee for administering grants and contracts is 15%. We have to charge a higher fee for those funding sources because significantly greater administration and reporting is required.

Beyond these charges, there are no other annual, maintenance or other special fees charged.

No. Star Legacy Foundation will typically renew the terms of the grant agreement as needed.

This provides an opportunity to modify the agreement if necessary to accommodate your project’s growth. The minimum time frame for a fiscally sponsored project with Star Legacy Foundation is two years.

No. Your project is a separate legal entity and is not an agent or legal representative of Star Legacy Foundation.

Your project is a part of the Star Legacy Foundation only in the sense that any grantee is part of the Foundation which provides enabling support. In that sense, your project is part of the overall mosaic which is Star Legacy Foundation.

Projects that desire a more aligned and ongoing relationship with Star Legacy Foundation should inquire about our Chapter program.

First, review Star Legacy Foundations mission and vision to see if they are compatible with your project’s long-term plans and goals.

Next, carefully review the description of Star Legacy Foundations fiscal sponsorship program. Look at other fiscal sponsors as well! There are real differences between programs and it’s important to seek a sponsor that is a good fit for your project.

After you determine that Star Legacy Foundation is a good fit for you and you want to apply, download the fiscal sponsorship application and review the questions.

Once you have reviewed the application, please fill it out and submit it by mail or e-mail, along with any required attachments. At this stage, you may wish to send us a short email outlining your project and requesting a consultation. We will respond within two weeks of receiving your request. If you submitted a full application, we will schedule a time to discuss your project in detail. If you sent a short email requesting consultation, we will schedule a more informal conversation to explore the potential of submitting a fiscal sponsorship application.

Our Board of Directors makes fiscal sponsorship decisions on a quarterly basis. The overall process from the time we receive your complete application to a decision by our board may take up to 3 months.

No. Receiving fiscal sponsorship from Star Legacy Foundation does not make your project a nonprofit charity and you are prohibited from advertising yourself as such.

The project will still be liable for its own tax reporting. Consult with a CPA to determine what type of tax filings may be appropriate.

In extending fiscal sponsorship, Star Legacy Foundation has simply determined that the work your project is performing will further the Foundation’s charitable mission. However, since your project is acting under the “charitable umbrella” of Star Legacy Foundation, Star Legacy Foundation needs to be meticulous with any records pertaining to the project.

Your project needs to send information to Star Legacy Foundation about its activities because Star Legacy Foundation has assumed liabilities to the IRS about the charitable nature of your activities.

Star Legacy Foundation has to maintain records that document its oversight ensuring that your project is furthering the Foundation’s own charitable mission and purpose. The only way that Star Legacy Foundation Foundation can maintain those records is if you keep us appraised of your activities.

Additionally, your project must document its activities to Star Legacy Foundation as you would for any other funder. Ongoing funding may be withheld if a report is delinquent.

Your project must provide Star Legacy Foundation with advance copies of all fundraising solicitations for pre-approval. The project must also prepare reports for funders and the cost of any reports or other compliance measures required by funding sources are borne by the project.

The project must submit a quarterly narrative and financial report that summarizes program activities and describes income and expenditures. The project should also submit an annual report that encapsulates activities for the entire year. In addition, the project should always send copies of any major work products or widely disseminated materials.

Remember, in many instances, you may be required to receive Star Legacy Foundation’s pre-approval before distributing these materials.

Here is a typical list of materials that should be sent to Star Legacy Foundation:

• Quarterly reports that detail activities and expenses for the quarter.
• Organized Annual Reports which summarize activities and expenses for the year.
• Copies of any fundraising solicitations, including all grant requests and reports to funders.
• Brochures, Action Alerts and other flyers.
• Copies of major policy memos, comments to administrative bodies, etc.
• Internal governing documents, including but not limited to:  roster of officers, roster of Steering or Advisory Committees, operating bylaws or charter, and a complete and filed IRS Form SS-4. If you change your governance process or anything else, (for example, any change in your project’s tax or legal status, or executive staff) send us the amended version.

If the project wants to initiate any significant activities that are not described in your original sponsorship application, we need to amend the sponsorship agreement to include these activities.

As long as the new activities are still within Star Legacy Foundation’s charitable scope, this should not be a problem.

However, please remember that under the agreement, Star Legacy Foundation reserves the right, if the project’s conduct jeopardizes Star Legacy Foundation’s legal or tax status, to withhold, withdraw, or demand immediate return of grant funds, and to expend such funds as to accomplish the purposes of the project as nearly as possible within Star Legacy Foundation’s sole judgment. This is a legal requirement in order for the Foundation to maintain its own charitable standing.

The project owns all of its work products!

Any tangible or intangible property, including copyrights, obtained or created by the project are the sole property of the project.

Star Legacy Foundation’s policy is that fiscal sponsorship projects may not lobby at all without the Foundation’s expressed advance permission. This is reflected in your Fiscal Sponsorship Grant Agreement, which states “fiscal sponsorship grants from the Star Legacy Foundation may not be used in any attempt to influence legislation within the meaning of IRS Code 501(c)(3).”

Any violation shall result in immediate termination of the sponsorship relationship, and may require return of past funds granted to the project. 

Various activities can fall under the catchall term “lobbying.” Many of these activities are actually 100% OK for a charity and are not considered “lobbying” in the legal sense – you can avoid confusion by properly calling these activities education and advocacy. Generally, it depends on whom you are talking to and what you are asking them to do.

Here are some general guidelines and examples: 

• Contact with appointed officials:  Most contact with an administrative agency, such as the Board of Forestry, Air District or Water Board is fully permitted and is not “lobbying”, although people commonly (and mistakenly) use that term to describe that kind of activity. However, if you ask these appointed officials to take a position or action about pending legislation you would cross the line into “real” lobbying and the Star Legacy Foundation’s advance permission would be required. A common area of confusion is when an elected body, such as a city council, also serves as an administrative agency, i.e. as a redevelopment agency. In these circumstances, care must be taken to ensure that all of your communications relate to the administrative function, not the legislative. Practically speaking, however, this may be hard to do. In these instances, communicate with Rose Foundation for guidance before initiating contact with the officials or agencies involved.

• Contact with elected officials:  Ask Star Legacy Foundation before you initiate contact with elected officials: Talking with elected officials is not necessarily lobbying. For example, you can meet with a legislator to provide background context or current information about your issue. You may ask the legislator to contact an administrative agency to express an opinion. You can even work with a legislator on model legislation, respond to questions about the potential effects a particular bill may have on your issue, or provide various kinds of technical assistance upon written request from a legislative committee chair – although this last type of contact should be screened with Star Legacy Foundation first. However, advocating a position on specific legislation is lobbying. Your project may not advocate positions on actual legislation without the express advance consent of Star Legacy Foundation.

• Involvement in political campaigns for public office:  Any project sponsored by Star Legacy Foundation shall not participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. Even simple endorsements of candidates is prohibited. No exceptions are possible. Involvement in electoral campaigns is completely illegal for charitable organizations. Don’t even think about it. Any involvement in political campaigns for public office will result in immediate termination of the fiscal sponsorship.

Yes.

Fiscal sponsorship projects may compete for grants on an equal footing with any other entity.

However, keep in mind that one of the primary purposes of the fiscal sponsorship relationship is to facilitate the project’s ability to attract funds from other sources besides Star Legacy Foundation.

The project is responsible for reporting its own fiscal sponsorship grant income and expenses on the appropriate IRS and state tax forms.

The correct form your project needs will depend on your project’s specific legal status (unincorporated association, sole proprietorship, partnership, etc.), and Star Legacy Foundation strongly urges all projects to seek the expert advice of a CPA or tax attorney.

You must also file the appropriate employer taxes, and provide wage and payment statements for employees and contractors, etc. If you need a referral to a CPA and/or tax attorney, please contact Star Legacy Foundation.

Your project is an independent entity, acting under the fiscal sponsorship of Star Legacy Foundation.

After notifying Star Legacy Foundation of the funding source(s) you intend to approach, Star Legacy Foundation will prepare a letter to the funder confirming the sponsorship and provide any other information they require.

Don’t wait until the last minute to tell us you need the letter or other materials for the funder you are approaching with a full proposal. We request at least one week advance notice before your submittal deadline. It is helpful if you send us a copy of the funder’s specific instructions so we can prepare exactly what they need.

Star Legacy Foundation recommends that you create some project letterhead, sign up a prestigious list of individuals to serve as a Board of Advisors, think through your own budget, write a brochure or flyer that describes your project and how people can get involved. These are the steps that help reflect your project vision as a living reality.