Working Together - Fiscal Sponsorship
How Lodges and WA Masonic Charities Can Work Together
Part of our work is to help Blue Lodges be successful in their charitable activity in the community. One way that Washington Masonic Charities (WAMC) accomplishes this is by acting in the capacity of a fiscal sponsor for Lodges and projects. Examples of fiscal sponsorship include receiving and holding donations for programs, such as Bikes for Books.
Fiscal sponsorship is a mechanism whereby WAMC, as a 501 (c) 3 nonprofit corporation may provide a variety of services and supports to a sponsored project without requiring that the group, such as a Lodge, start a separate 501 (c) 3.
WA Masonic Charities will support fiscal sponsorship for the following activities:
1) Children's Identification Program (WASIP/CHIPS).
2) Bikes for Books and similar literacy and education programs.
3) Initiatives that support homeless, foster, and disadvantaged youth; initiatives that promote youth character development, civility, and/or leaderships development.
5) Support for Older Adults and people with disabilities - including aging in place.
6) Support for the preservation and sharing of Masonic heritage.
WA Masonic Charities cannot support programs or activities that can be considered a pass through, do not meet the organizations charitable purpose, or are solely for the benefit of Masons, Lodges Buildings, or Lodge operations.
To assure that WAMC is in compliance with IRS rules and regulations, WAMC requires that any entity wishing to work through WAMC enter into a fiscal sponsorship agreement.
Examples of services provided through a fiscal sponsorship agreement include:
Finance and Accounting.
Receiving and managing Project Funds and provide accounting services for the project.
Maintaining project funds in a bank account.
Providing accounting reports to the sponsored organization.
Making sure project funds and assets are properly managed and included in the WA Masonic Charities annual audit process.
Securely maintain hard and/or electronic copies of official financial records.
Send all required acknowledgments to donors of tax-deductible contributions and submit all required grant reports.
Review project solicitations.
Maintain database and donor records for donors to the Project.
Issue acknowledgement letters for the donors to the Project.
Additional Services - Additional services may be provided by agreement.
Fiscal sponsorship agreements typically require the sponsored organization to adhere to certain rules and requirements related to the purpose of the funds, as well as solicitation and the use of the charity organization's good name. In addition, fiscal sponsorship with WAMC will involve an administrative fee to cover the costs related to management & reporting, banking, and audit, plus any out of pocket expenses related to the project.
For more information on fiscal sponsorship, go to the National Network of Fiscal Sponsors web site at http://www.fiscalsponsors.org/pages/about-fiscal-sponsorship.
Lodges that currently have funds held by WAMC will be asked to complete Fiscal Sponsorship agreements to renew funds holding.
Click here for a sample financial sponsorship agreement http://www.wa-masoniccharities.org/documents/WAMC%20FSA%20Sample.pdf