Recent news in the nonprofit press about the reported collapse of International Humanities Center (IHC), a fiscal sponsor organization based in California, has raised real concerns in the philanthropic world. Projects sponsored by IHC received correspondence from IHC indicating that it was unable to make disbursements in response to their check requests for money to cover current project...

Steven Chiodini and Greg Colvin have published an article in Taxation of Exempts this summer that explores a possible new “Model L” for fiscal sponsorship. This article, entitled The Use of LLCs in Fiscal Sponsorship — A New Model, in the Thomson Reuters journal Taxation of Exempts, May/June 2011, is available on the Adler & Colvin website. Some 501(c)(3) public charities that use the Model...

In a bulletin issued September 6, 2005, the Internal Revenue Service provided guidance to those interested in forming new organizations for relief of Hurricane Katrina victims, IR-2005-93, found here. The IRS also promoted the concept of fiscal sponsorship of relief projects through charities already in place, saying: “Use of existing charitable organizations is encouraged because such...