Common Questions Answered for Models A and C

These are the most common questions people ask us here at Humanitarian Social Innovations when they are trying to determine which model of fiscal sponsorship is the best fit for their program. Models A and C are the most commonly practiced among fiscal sponsors and HSI offers both.

Your question Acceleration-Our Model A  Certified Grantee-Our Model C
Who hires employees? You choose the employees which are legally hired by HSI. Your organization chooses and hires employees.
Who chooses the advisory board? You choose an advisory board for your program.  The HSI Board of Directors is your BOD.

HSI will assist you with AB selection if you like.

Your organization chooses its own Board of Directors and an advisory board if you so choose.

HSI will assist you with BOD and AB selection if you like.

Are there marketing/ fundraising guidelines, or does everything need to be approved before using? Any documents used to raise tax exempt funds must be pre-approved by HSI.
What if the project fails? HSI terminates the project after exhausting all mutually agreeable action plans and transfers the assets to a 501(c)(3) organization that has a similar mission to that of the project. Project dissolves its incorporation and transfers the assets to a 501(c)(3) organization that has a similar mission to that of the project.
What type of accounting system is used by HSI? HSI uses fund accounting on a cash basis.
What if cash flow is in the negative? Project is not permitted to spend HSI funds from a deposit account that is exhausted. Project can suspend programming and raise money, or founder can input funds.
Who pays creditors? Project submits invoices to be paid by HSI from project funds on deposit. Project pays its own invoices from project funds on deposit in its own bank account.
How does it work with payments from consumers (credit cards) Using program funds, you purchase and set up a POS system that will accept credit cards and send the money to funds on deposit in your HSI deposit account.

Donors may make credit card donations on your HSI fundraising page.

Your organization purchases and sets up a POS system that will accept credit cards and send funds to your bank account.

Donors may make credit card donations on your HSI fundraising page.

Who would sign a lease? HSI executes the lease agreement. Your organization executes the lease agreement.
Funds subject to administrative fees All-donations, grants, fundraising,sponsorships, fees for services Tax exempt donations and grants only

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