Warning about fiscal sponsorships
If you do not have your 501 (c) 3 or don't need to start one, but still have a charitable purpose some organizations (including the Community Foundation) will offer 'fiscal sponsorship' services for a fee. Normally, the concern is on the sponsors end - will organization meet reporting requirements, liability concerns etc. After all it is their tax status that is on the line. But this story shows that finding a good partner is just as important on the organization's side. The FBI is investigating the apparent disappearance of an estimated $1 million in donations that about 200 nonprofits reported losing when the organization that handled their finances abruptly shut down this year, forcing some groups to curtail their charity work. You can read the LA Times article here.
