Model L: Using LLCs in Fiscal Sponsorship
Summer camps for children. Medical care for low-income, homebound seniors. Charitable projects like these can have high liability risks, especially for nonprofit startups. Adding in costs of getting exempt status may make the whole endeavor too costly to undertake.
Learn how the use of LLCs (limited liability companies) in fiscal sponsorship can provide benefits of 501c3 status to these types of nonprofit startup projects while limiting the fiscal sponsor’s liability, from attorneys Steven R. Chiodini and Gregory L. Colvin, of Adler & Colvin, a San Francisco law firm that provides legal services and support to the nonprofit and philanthropic sector in the U.S. Mr. Colvin is also the author of Fiscal Sponsorship: 6 Ways to Do It Right, considered to be the authoritative guide on fiscal sponsorship.
Key topics covered during this session:
- Overview of fiscal sponsorship and its evolution
- Overview of Models A & C, for context
- Model L features
- Advantages of Model L over Models A & C
- Examples of Model L projects now in progress
- Handling direct donations to LLC in Model L
- Model L for international projects
- Good candidates for Model L
- Slides from this presentation (pdf, 1.89 MB)
- "The Use of LLCs in Fiscal Sponsorship - A New Model", authored by the presenters and published in May/June 2011.
- All levels of experience
- Nonprofit startups