CLN Top Legal Requriments for Sponsored Projects:

(see pdf for current version)

Introduction:

Although there are 20+ policies, guidelines and regulations for CLN Sponsored Projects to help you and us keep everything in synchronized order, we have also developed a list of just the Top Legal Requirements that you MUST do to keep your Fiscally Sponsored Status.  These are basic legal requirements that if are not completed by each Sponsored Project could result in the entire Umbrella non-profit loosing its tax exempt status, or worse yet, credibility in the non-profit sector.  If any Sponsored Project does not not meet these basic legal requirements, they can be put on a 6 month "probation" or can result in immediate reversal of fiscal sponsorship in order to ensure that the umbrella non-profit as a whole is stable and secure.

Disclaimer & Spin-Offs:

At anytime if a fiscally sponsored project feels that the policies or procedures of the CLN are confining for any reason, the leadership committee of that project can vote to spin-off and leave the umbrella network and become its own legal entity.  If fiscally sponsored projects are hindering or could potentially hinder the CLN for any reason, the CLN can also decided to spin-off an separate umbrella organization, or a fiscally sponsored project at anytime, although the timeline to spin-off a new non-profit typically takes about 2 years so it is important to start early.

CLN Inc. Board Decisions:

As an umbrella non-profit, the purpose of the CLN Inc. Board is not to get involved in any individual project or do top down coordination.  Instead the purpose of the CLN Inc. Board is to make sure that all projects within the umbrella are following the law for the security and long term stability of the non-profit tax exempt status.  The best way to understand the processes is that if there is any type of legal or potentially legal decision that will, is or has taken place for your project, that decision needs to go to the CLN Inc. Board.  The Board is the only body within the non-profit umbrella that can finalize legal decisions, although they would still be discussed and decided on within the project leadership committees,  the final proposals must always be brought to the board.  The Board is not allowed to prioritize projects, pit projects against each other, or choose not to allow a project or proposal for personal reasons that aren't legal reasons.  In other words the job of the Board is to be a neutral organizer and allow the projects to flourish.

At anytime if you are not sure how to contact the CLN Inc. Board, just email inc@CommunityLifeNetwork.org

Here is the list of the 9 Top Legal Requirements for Fiscally Sponsored Projects.  Bellow is a description of each.

Budget Approval Process
Grants & Grant Reporting:
Workers & Personel: 1099's & Employee Taxes
Anual Reporting:
Contracts & Long-Term Agreements:
Other Legal Permits/Filings/Reporting/Licences/Taxes/Insurance/etc...
Conflicts / Issues / Internal Problems
Anything in the "Gray Area"
Basic Financial Doccumentation