School Factory, Inc.
706 S 5th St.
Milwaukee, WI 53204
FISCAL SPONSORSHIP POLICIES
This document describes the operational agreement for implementing the Fiscal Sponsorship Agreement. The Fiscal Sponsorship Policies should always be accompanied by a signed Fiscal Sponsorship Agreement.
Under no circumstances does School Factory advance money to projects. Deposited funds must be cleared by the bank prior to any requested draw, which may take up to two weeks.
Grants, Awards, and Scholarships Made
For any grants, awards, or scholarships made by a project, School Factory management requires a copy of the signed grant agreement along with a completed check request form. School Factory’ Executive Director’s signature is required for amounts over $5,000. If the grant is made to an organization that is not a 501(c)(3) charity that School Factory currently lists in its database, additional paperwork will be required. Forms and procedures are subject to the Executive Director’s review.
School Factory’ Executive Director must co-sign all original grant agreements and be copied at least one week in advance on all progress and final report submissions. Grants involving government or public agency monies have very heavy reporting and auditing requirements that a project must discuss in advance of acceptance with the Executive Director.
School Factory will accept, process, and acknowledge contributions to each project. This includes issuing receipts for tax deductions. Donations should be made payable to “School Factory” with an entry in the memo field for ____________ (Space or Project name).
All donations made by check must be made out to the School Factory and mailed to:
The School Factory
706 South 5th Street
Milwaukee, WI 53204
All cash donations will be processed by the School Factory and the intended Space/Program will receive a "reimbursement" check from the School Factory for each cash donation made minus a 10% administrative fee as described below.
It is not the School Factory accounting staff’s responsibility to meet with a fund’s donors and walk them through paperwork. School Factory management will work with funds to educate them on the necessary forms to liquidate a noncash gift. Donations over $250.00 will be individually receipted. Stock gifts can only be made through School Factory’ designated broker.
Credit Accounts and Other Liabilities
Project Directors may not incur debts or liabilities beyond the project’s ability to pay; individual Project Directors are personally liable for any excess. A project’s ability to pay is measured strictly by its cash balances, without including anticipated grants or contributions.
Fundraising activities are very labor intensive to administer. School Factory management requires at least one month’s notice of any fundraising events. A copy of all mailings and solicitations must be approved by School Factory management in advance of mailing or other distribution. The project director must complete a Fundraising Checklist meeting with School Factory management prior to each event. School Factory management is available to answer any questions a project may have regarding fundraising activities.
Project leadership will provide to School Factory a statement of monthly activity and a detailed balance of accounts within 30 days of each month end. Any corrections to the project’s accounts must be requested within 30 days after receipt of that statement.
Project will create a Bank Account with the financial institution of its choice to hold any funds received in the name of the Project.
Each project will need to maintain a current listing of the names, addresses, and phone numbers of all members of a project’s staff. Each project should forward a copy of meeting minutes to the School Factory Executive Director, as they are finished, as well as the staff member roster and any other governing documents.
School Factory charges 10% of all donated amounts as an administrative fee. This fee covers the federal, state, and tax-related reporting requirements, audits, administration, communication with funding agencies, and liability insurance. School Factory will retain one-half of all interest earned by a project’s funds on deposit. Some grantmakers require that this fee be waived; in this case, contact the School Factory to make arrangements.
All projects must use a fiscal year ending on December 30.
Funds are prohibited from excessive lobbying, or any other activities that would jeopardize School Factory’s charitable tax-exempt status. School Factory has the right to determine, in its sole discretion, what constitutes excessive lobbying by a project, or what activities jeopardize School Factory’s tax-exempt status. All lobbying expenditures must be reported to School Factory management.
All project letterheads and external communications must include the following text:
"This is a fiscally sponsored project of the School Factory, Inc. a 501(c)3 non-profit corporation."Amendments
These policies may be amended from time to time with consent of Project’s authorized representative.
I have received, understand, and agree to the forgoing sponsorship policies of Fiscal Sponsor, on behalf of my project.
School Factory Director: