Often by the time projects receive funding they don’t know “what to do with the money” and start looking fast into fiscal sponsors or other ways to receive the funds
Specifically, this is a concern for projects that have more than one paid member as one person receiving the money for many people and then distributing it can have adverse tax implications for the person receiving the large lump sum. We were in this position last year, along with quite a few (5+) other orgs we were communicating with. Happy to discuss this more if it’s helpful.
Thanks for a great post.
+1 to the following:
Specifically, this is a concern for projects that have more than one paid member as one person receiving the money for many people and then distributing it can have adverse tax implications for the person receiving the large lump sum. We were in this position last year, along with quite a few (5+) other orgs we were communicating with. Happy to discuss this more if it’s helpful.
Thanks Sean! I sent you a private message to talk about this.