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Revision of Fiscal Sponsorship Policies from Mon, 2011-04-18 15:07

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Fiscal Sponsorship Policies

 

School Factory, Inc.

706 S 5th St.

Milwaukee, WI 53204 

www.schoolfactory.org 

sponsor@schoolfactory.org 

414-215-0215

 


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.

Accounts Payable

Acceptable invoices received by end of business on any Monday will be paid and mailed by end of business on the following Friday. “Acceptable invoices” must be original, approved, coded documents (small receipts to be mounted on 8.5 x 11 paper). It will be the responsibility of each project to submit a completed IRS Form W-9 for each new vendor. If funds are not available in the project account, the project manager is responsible for notifying vendors of delays in payment for any reason.

Cash Advances

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.

Employees

School Factory does not allow projects to pay individuals who satisfy the IRS definition of employees as contractors. School Factory management is available to discuss employee vs. contractor classification issues with projects. Project leadership is responsible for ensuring that employees and contractors are distinguished appropriately. The project is responsible for paying the $4 1099 processing fee for each subcontractor paid using School Factory checks.

Payroll

ANY request to change a payroll record (pay rate, termination, regularly scheduled hours) must be communicated to School Factory management via an email message at least five business days prior to the effective date of the change. In order to receive a paycheck, an employee must have submitted a completed; INS Form I-9, IRS Form W-4 (and other state- or government-required forms) at least five business days prior to payday. School Factory management will provide action forms, file all payroll tax returns, and IRS Form W-2’s. Employees of the project must complete all forms and paperwork and submit to School Factory payroll provider. School Factory will then call to activate employee’s payroll account. School Factory will charge projects $25 for each manual payroll check required on a special-order basis, and $25 for activating each employee of Project. Project is responsible for paying project employee payroll amounts directly.

Job Descriptions

Projects are asked to develop and maintain job descriptions for each employee. Each employee must submit a profile to the School Factory containing their bio, resume, job description or roles and responsibilities to sponsor@schoolfactory.org with subject line “Job Description for ___________” (Project Name)

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.

Grants Received

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.

Donations

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 ____________ (Project name). 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

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.

Volunteers

The use of volunteers exposes School Factory to additional liability. ALL volunteers who provide services to, or perform services for, a project without compensation for their time must sign the standard volunteer indemnification and release form. (Reimbursement of expenses does not constitute compensation for time spent.)

Financial Statements

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.

Bank Accounts

Project will create a Bank Account with the financial institution of its choice to hold any funds received in the name of the Project.

Project Staff

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.

Administrative Fees

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.

Insurance Provided by School Factory

School Factory maintains general liability insurance, and workers’ compensation insurance for all employees at no additional charge.

Fiscal Year

All projects must use a fiscal year ending on December 30.

Lobbying

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.

Sponsor Identification

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.

Acknowledgment

I have received, understand, and agree to the forgoing sponsorship policies of Fiscal Sponsor, on behalf of my project.

 

School Factory Director:

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