WHAT THIS MEANS
A fiduciary is
a person or organization that is responsible for managing money on behalf of someone else, with a legal duty to do what is right, careful, and compliant.
In the nonprofit world, fiduciary services are often called fiscal sponsorship. When MFCF serves as a fiduciary for a project, MFCF becomes the organization that:
-
receives funds under MFCF’s nonprofit status
-
holds those funds in a designated project account
-
ensures the funds are used only for the approved charitable purpose
-
follows required rules for documentation, contracts, and reporting
Simple version: MFCF becomes the legal and financial steward of your project funds so your work can move forward responsibly.
Why we offer this
Because community solutions should not be blocked by paperwork.
Many community leaders are ready to do the work, but do not have the time, money, or capacity to build a full nonprofit infrastructure right away. We also are committed to not reinventing the wheel in pursuit of our mission, recognizing that existing movements and leaders often just need infrastructure and resources. MFCF offers fiduciary services to:
• remove barriers that slow down community solutions
• help projects access grants and tax-deductible donations sooner
• protect community dollars through clear oversight and compliance
• support strong social infrastructure, not just individual programs
Eligibility
Who is eligible
Fiduciary sponsorship is for projects that:
-
align with MFCF’s mission and charitable purpose
-
restrict services to communities in the United States
-
have a clear program plan and a responsible project lead
-
can follow basic financial documentation and reporting requirements
Good fit examples include:
-
new or early-stage programs without a 501(c)(3)
-
pilots, coalitions, and time-bound initiatives
-
existing 501(c)3 that need an umbrella for a specific initiative
Not a fit examples include:
-
pass-through requests with no clear charitable program
-
personal fundraising not tied to an approved project budget and scope
-
projects unwilling to provide receipts, documentation, or updates
Benefits
With MFCF as fiduciary
• Receive grants and donations through MFCF’s nonprofit status
• Reduce compliance risk for fundraising and restricted funds
• Gain credibility with funders who require nonprofit infrastructure
• Spend more time delivering the work and less time building systems
• Receive clear financial tracking and documentation for reporting
As a standalone organization
-
You carry full responsibility for compliance, reporting, controls, and filings
-
Waiting for your 501(c)3 determination may cause you to miss grants & opportunities
-
You must build financial systems and policies from scratch
-
You meet funder capacity expectations on your own
-
Errors can delay funding, create risk, and damage funder trust
A fiduciary relationship is often the smartest bridge between being ready to serve and being ready to run & sustain a formal nonprofit entity.
MFCF Fees
Simple and transparent pricing
MFCF’s fiduciary fee is 10% of assets received and managed through the fiduciary relationship.
If initial assets are under $1,000, MFCF charges a $100 onboarding fee. A portion of this $100 will be used to seed the project account.
This fee supports compliance, financial management, documentation, and the infrastructure required to steward funds responsibly.
The Process
Maintaining the relationship
Operating under MFCF fiduciary sponsorship
While sponsored
The project lead is responsible for:
-
delivering the work within the approved scope
-
requesting expenses with receipts and documentation
-
meeting reporting deadlines and providing activity updates
-
communicating changes in leadership, scope, or risk
MFCF is responsible for:
-
receiving and tracking funds in the project account
-
approving eligible expenses and maintaining documentation
-
supporting compliance for restricted funds and funder requirements
-
providing financial reporting for the project and funders as needed
To stay in good standing, projects must:
-
use funds only for the approved charitable purpose
-
submit receipts and documentation for all expenses
-
follow basic contracting and vendor rules when applicable
-
meet reporting deadlines
-
communicate changes early, not after the fact
If a project falls behind, MFCF may pause payments and set a corrective plan with clear steps and deadlines.
Ending the Fiduciary Relationship
Fiduciary sponsorship can end in a planned way or a corrective way.
Planned Ending
Common reasons:
-
the project becomes its own nonprofit and receives IRS determination
-
the project completes its purpose
-
the project transitions to another aligned fiduciary
Planned closeout typically includes:
-
final financial reconciliation
-
completion of required funder reporting
-
transfer or payout of remaining funds, if allowable and compliant
-
written confirmation of closure
Corrective Ending
MFCF may end sponsorship if a project:
-
uses funds inappropriately
-
refuses documentation or repeatedly misses reporting deadlines
-
changes purpose without approval
-
creates legal, financial, or reputational risk
In corrective cases, MFCF may pause spending immediately to protect funds and will follow a compliant closeout plan based on funder rules and legal requirements.
Ready to Explore Fiduciary Services?
If you have funding on the table or a project ready to launch, MFCF fiduciary services can help you move forward with structure and compliance.