Westport-Wadhams Community Alliance Fiscal Sponsorship Policy

LAST UPDATED 05.06.2026

1. Purpose

The Westport-Wadhams Community Alliance Inc (WWCA) may provide fiscal sponsorship to community-based projects that advance its mission:

To nurture collaborations among public and private entities and support economic growth, cultural vitality, and environmental sustainability in the Westport-Wadhams community.

Fiscal sponsorship allows individuals or groups without independent nonprofit status to conduct charitable activities that are beneficial to the community under WWCA’s tax-exempt status, subject to WWCA oversight and approval. Through fiscal sponsorship, WWCA supports projects that strengthen community collaboration and contribute to the economic vitality, cultural life, and environmental well-being of the Westport-Wadhams community.

2. Eligibility

Projects considered for fiscal sponsorship must:

  • Align with the mission and charitable purposes of WWCA

  • Aligns with exempt purposes set forth in Internal Revenue Code section 501(c)(3) (https://www.irs.gov/charities-non-profits/charitable-purposes)

  • Provide a clear public benefit to the Westport-Wadhams community or surrounding region

  • Does not conflict with the current fundraising priorities/request of the Westport-Wadhams Community Alliance.

  • Have identified leadership responsible for project management and implementation

  • Demonstrate a feasible plan for activities, funding, and outcomes

  • Comply with all applicable laws, regulations, and WWCA policies

Fiscal sponsorship is intended to support specific charitable projects or initiatives, not independent organizations seeking ongoing administrative services. 

3. Application

Individuals or groups seeking fiscal sponsorship must submit a written proposal that includes:

  • Project description and objectives

  • Community benefit and anticipated impact

  • Project leadership and responsible parties

  • Project timeline

  • Proposed budget and anticipated funding sources

  • Description of fundraising activities, if applicable

WWCA may request additional information as necessary for evaluation.

4. Review and Approval

Fiscal sponsorship proposals will be reviewed by a Fiscal Sponsorship Steering Committee appointed by the WWCA Board of Directors. The steering committee will submit their response within 10 days of receipt of the application.

The Steering Committee will evaluate proposals based on:

  • Alignment with WWCA’s mission

  • Community benefit and impact

  • Feasibility and readiness of the project

  • Financial viability and budget clarity

  • Capacity of project leadership

  • Potential legal, financial, or reputational risk to WWCA

The Steering Committee will provide a recommendation to the Board of Directors. Final approval of fiscal sponsorship rests with the WWCA Board of Directors.

WWCA reserves the right to decline proposals based on organizational capacity, criteria alignment, or board discretion.

5. Fiscal Oversight

All funds raised under WWCA fiscal sponsorship are the property of WWCA and will be held and administered by WWCA for the charitable purposes of the approved project.

Project funds:

  • Must be used solely for expenses directly related to the approved project

  • Will be disbursed by WWCA upon submission of appropriate documentation

  • Will be tracked within WWCA’s financial records as restricted funds

WWCA retains full and complete discretion and control over the use of funds to ensure compliance with nonprofit regulations and WWCA policies.

6. Project Leader Responsibilities

Project leaders are responsible for:

  • Implementing the project as described in the approved proposal

  • Complying with WWCA financial and reporting procedures

  • Maintaining regular communication with WWCA regarding project progress

  • Representing the project accurately in fundraising and public communications

  • Ensuring activities comply with applicable laws and WWCA policies

Project leaders may not enter into contracts, incur liabilities, or represent themselves as agents of WWCA without prior written approval.

7. Fundraising and Communications

All fundraising conducted under WWCA fiscal sponsorship must:

  • Clearly identify WWCA as the fiscal sponsor

  • Use donation channels approved by WWCA

  • Receive prior approval for grant applications submitted under WWCA’s tax-exempt status

All donations are made to WWCA and are tax-deductible to the extent allowed by law.

Public communications referencing WWCA must be consistent with WWCA policies and communication standards.

8. Reporting

WWCA may require periodic updates from project leaders, including:

  • Progress report in writing or presented to the steering committee and/or board

  • Financial summaries

  • A final report describing project outcomes and community impact

Reporting requirements will be defined in the fiscal sponsorship agreement.

9. Term and Termination

Fiscal sponsorship agreements will define the duration, scope, and termination clauses of the project. 

WWCA may terminate fiscal sponsorship if:

  • Project leaders fail to comply with WWCA policies

  • Funds are used for purposes outside the approved project scope

  • Activities expose WWCA to unacceptable legal, financial, or reputational risk

Disposition of any remaining funds at end of term or termination will be determined by WWCA in accordance with nonprofit regulations and the fiscal sponsorship agreement.

10. Authority

The WWCA Board of Directors retains final authority over all fiscally sponsored projects and all funds received under WWCA’s nonprofit status.

11. Conflict of Interest

All fiscal sponsorship proposals will be evaluated in accordance with WWCA’s Conflict of Interest Policy.

If a WWCA board member, officer, or Steering Committee member is directly involved in or affiliated with a project seeking fiscal sponsorship, that individual must:

  • Disclose the relationship to the Board and Steering Committee

  • Recuse themselves from discussion and evaluation of the proposal

  • Abstain from any vote related to the project

The Steering Committee and Board will evaluate such proposals using the same criteria applied to all other applicants.

12. Duration of Fiscal Sponsorship

Fiscal sponsorship is intended to support time-limited charitable projects rather than ongoing programs.

Unless otherwise approved by the WWCA Board of Directors:

  • Fiscal sponsorship agreements will generally be limited to a maximum term of eighteen (18) months.

  • Projects seeking additional time must submit a renewal request for review by the Steering Committee and approval by the Board.

In limited circumstances, the Board of Directors may approve long-term or ongoing fiscal sponsorship relationships when a project provides clear and sustained benefit to the community and aligns closely with the mission of WWCA.

13. Administrative Fee

To support the administrative and financial oversight required for fiscal sponsorship, WWCA will charge an administrative fee of up to 10% on funds received on behalf of fiscally sponsored projects.

This fee helps cover costs associated with:

  • Financial management and bookkeeping

  • Donation processing and receipting

  • Compliance with nonprofit regulations

  • Staff or volunteer administrative time

  • Financial reporting and recordkeeping

  • Other mission-driven purposes

The administrative fee will be identified in the fiscal sponsorship agreement and will be typically deducted at the time funds are received unless otherwise specified in the fiscal sponsorship agreement.

In certain circumstances, the WWCA Board of Directors may approve a modified fee structure if doing so advances the mission of WWCA or supports a project of significant community benefit.