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How It Works

Last modified: February 10, 2024
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Compass Charitable Partners provides sponsored projects with fiscal and operational oversight, while allowing them to raise financial support as if they were themselves a 501(c)(3) organization.  As a Model C fiscal sponsorship, all sponsored projects are independent entities, responsible for cultivating their own donor base, as well as conducting their own charitable activities without the direct involvement of Compass or its team members.

In a nutshell, here’s how the life cycle of a sponsored project works:

  1. The project manager applies to Compass to become a sponsored project.
  2. Upon approval, the project is ready to begin operations, but should have a couple of things ready to go.
    • At tax ID number (FEIN or SSN)
    • A bank account, preferably separate from the Project Manager’s personal account
  3. The Project personnel solicit donations from their target audience of supporters.
  4. Donors make charitable gifts to Compass, designated to the project.
  5. Compass will deposit all funds designated to the project in a restricted account, less a 10% administrative fee.
  6. When a Project Manager needs to access funds in their account, he/she will submit a funds distribution request via the Project Portal.  The request form will require the Project Manager to outline the amount of funds requested, and the expected use of those funds.  A Compass team member will review the request for compliance with charitable use restrictions and, upon approval, with distributed the requested amount (subject to sufficient balance in the project account) to the bank account of the project via ACH (electronic funds transfer).
  7. At least annually, the Project Manager is required to submit a Annual Expenditure Accountability Report via the Project Portal, to report an itemized actual use of the distributed funds.
  8. By January 31 of each year, Compass will mail to the Project Manager a federal Form 1099-NEC for the gross amount of funds distributed (not donations received) to the project’s bank account.
  9. The donation/funds request/reconciliation report cycle continues throughout the term of a Project Partnership.
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