The goal of the Jewish Communal Fund’s Fiscal Sponsorship Program is to facilitate charitable support for organizations and projects that have not yet received their 501(c)(3) determination from the IRS.
As a fiscal sponsor, the Jewish Communal Fund (JCF) acts as an umbrella organization for an organization or project and accepts and administers funds on its behalf. JCF is the legal owner of the funds received in support of the organization or project and is responsible for ensuring that the funds are used for charitable purposes. JCF sponsors organizations and projects that abide by the Review Criteria and reflect a similar commitment to the values set forth in the JCF Mission Statement
Applications for fiscal sponsorship are accepted on a rolling basis. Once JCF has received all the requested materials, the application will be reviewed by staff and the Executive Committee. If the application is approved, JCF will execute a fiscal sponsorship agreement.
The length of the application process depends on a number of factors, including how complete the application is at the time of submission, the number of applications currently being reviewed, and the time of year (applications will not be reviewed in November and December). The average time period for the review and decision-making is 4-6 weeks.
How it Works
JCF staff evaluate each organization or project’s application, and if it meets all of JCF’s requirements, the application is forwarded to the Executive Committee of the Board of Trustees for review and approval. Upon approval, JCF will execute a fiscal sponsorship agreement with the organization or project team, requiring funds to be used for a specific purpose and setting forth the terms and conditions of the organization’s relationship with JCF.
JCF’s primary role is to facilitate charitable support for the organization or project. To enable charitable support, JCF creates a special restricted fund for the sole purpose of funding the organization’s activities, as long as the organization meets all obligations of the sponsorship agreement.
Donations earmarked for an organization operating under JCF’s sponsorship are made payable to JCF, and are fully deductible to the donor. Contributions can be made in the form of checks, credit cards, appreciated securities or other JCF pre-approved forms of property. JCF will issue tax receipts to all donors who contribute to the fund, and will notify the organization that funds were received. Contributions are invested while held in the fund, and all interest is credited to the account.
Upon submission of invoices for appropriate budgeted expenses, JCF will transfer funds to the organization which will then pay its own bills, staff, vendors and contractors. Projects that have not incorporated may submit payment requests with all required backup information and JCF will pay the invoices against the project’s account balance. Sponsored organizations and projects are required to submit quarterly reports, which include a financial accounting of all expenses and a narrative update on the progress of the sponsored organization
In order to be eligible to apply to JCF for fiscal sponsorship, the organization or project must meet the following criteria:
- Reflect a similar commitment to the values set forth in JCF’s Mission Statement
- The work that will be sponsored must be for purposes which are legal, further a legitimate tax-exempt purpose, and in no way jeopardize the tax exempt status of JCF
- Meet the requirements outlined in the Review Criteria section of the application
- The project budget must be at least $100,000 with funding secured. The organization may be considered for fiscal sponsorship if contributions are committed, either from individuals or foundations, for $25,000 or more.
Organizations are accepted by JCF after being reviewed using the following criteria:
- Relevance and Significance to Jewish Communal Fund – Are the subject matter and project consistent with the goals of the Jewish Communal Fund’s mission?
- Likelihood of Attaining Tax-Exempt Status or Project Completion – Is the organization currently seeking or does it have a timeline for seeking its 501(c)(3) status?Does the proposed project have a very high likelihood of being successfully completed and is the project feasible?
- Budget – Is the budget well developed and realistic for the organization? Does the proposed budget match the needs of the organization/project?
- Fundraising Ability – Are funds already secured or likely to be secured? Has the organization’s CEO identified appropriate sources of funding for the organization?
- Demonstrated Ability of Key Personnel – Do the applicant and proposed personnel have the ability to successfully develop and run the organization/complete the proposed project?
Fiscal Sponsorship Fee
There will be a fee charged of 4-5% of the average daily balance maintained in the account, posted monthly, depending on services provided.