Right. But OpenPhil doesn’t administer Good Ventures books, OpenPhil doesn’t ensure Good Ventures is compliant with relevant laws, OpenPhil doesn’t hire/employ Good Ventures staff, and OpenPhil doesn’t administer Good Ventures’s payroll, and OpenPhil doesn’t operate or provide Good Ventures’s a “private foundation” or “LLC” status.
So while what you’re describing is definitely a viable (if not complex) arrangement, it is not similar to the kind of arrangement I’m aiming to describe.
Similarly, RP can and does offer services (e.g., research consulting, running an event, administering a fund) on behalf of another org without legally absorbing that org, but the kind of fiscal sponsorship I’m describing that RP and Effective Ventures does require legally absorbing the org (while still credibly promising independence).
I think I should aim to be clearer that I definitely do think it will often be the right choice for an org to not seek fiscal sponsorship (or to eventually spin off from fiscal sponsorship) and become its own org with its own 501c3 status and its own board and its own books and its own payroll, but I think there are also a bunch of projects where all that overhead doesn’t make sense (yet) and so fiscal sponsorship is the right play.
I definitely want to affirm that what you’re offering is incredibly valuable for many organizations, especially those that are younger or smaller, and that it is the right play for many organizations.
Right. But OpenPhil doesn’t administer Good Ventures books, OpenPhil doesn’t ensure Good Ventures is compliant with relevant laws, OpenPhil doesn’t hire/employ Good Ventures staff, and OpenPhil doesn’t administer Good Ventures’s payroll, and OpenPhil doesn’t operate or provide Good Ventures’s a “private foundation” or “LLC” status.
So while what you’re describing is definitely a viable (if not complex) arrangement, it is not similar to the kind of arrangement I’m aiming to describe.
Similarly, RP can and does offer services (e.g., research consulting, running an event, administering a fund) on behalf of another org without legally absorbing that org, but the kind of fiscal sponsorship I’m describing that RP and Effective Ventures does require legally absorbing the org (while still credibly promising independence).
I think I should aim to be clearer that I definitely do think it will often be the right choice for an org to not seek fiscal sponsorship (or to eventually spin off from fiscal sponsorship) and become its own org with its own 501c3 status and its own board and its own books and its own payroll, but I think there are also a bunch of projects where all that overhead doesn’t make sense (yet) and so fiscal sponsorship is the right play.
I definitely want to affirm that what you’re offering is incredibly valuable for many organizations, especially those that are younger or smaller, and that it is the right play for many organizations.
Thanks!