❓ How does Pure Charity provide governance and oversight for fiscally sponsored projects?
When your project is fiscally sponsored by Pure Charity, it operates under our 501(c)(3) public charity. That means Pure Charity is legally responsible for how funds are raised, managed, and spent—and we take that responsibility seriously.
We provide governance and oversight to ensure your project remains compliant with IRS regulations, donor expectations, and nonprofit best practices—while still giving you the freedom to lead the day-to-day work in your community.
🧭 How fiscal sponsorship governance works in practice:
1. Charitable Purpose & Project Approval
When you apply for fiscal sponsorship, we review your project to ensure it fits within Pure Charity’s charitable mission and IRS guidelines. Once approved, we enter into an agreement that outlines how funds will be used and how we’ll work together.
2. Legal Ownership & Fiduciary Responsibility
Pure Charity maintains legal and fiduciary control over all funds raised through our platform, including those held in your Donor Advised Fund (DAF). We don’t just hold the money—we are responsible for ensuring that it’s used for legitimate charitable purposes.
This structure ensures that:
- Donations are tax-deductible
- Funds are used as intended
- Your work stays compliant with IRS nonprofit regulations
3. You Lead, We Support
You continue to lead your initiative—organizing events, directing programs, and building relationships. Pure Charity provides:
- Donation processing & tax receipting
- Secure disbursement of funds
- Financial reporting
- Compliance checks & support
- Donor data management
- Technical infrastructure (e.g., your giving page)
4. Disbursement Requests & Accountability
As the fund advisor, you can request disbursements from your DAF. Pure Charity reviews each request to ensure that:
- The expense is charitable in nature
- It aligns with your approved purpose
- Documentation is submitted as needed
This process provides flexibility with accountability, protecting your project and your donors.
🧑⚖️ The Role of the Pure Charity Board of Directors
Pure Charity is governed by a Board of Directors, which holds ultimate responsibility for:
- Ensuring all sponsored projects align with our charitable mission
- Approving high-level fiscal policies and practices
- Overseeing financial stewardship and legal compliance
- Maintaining the integrity of Pure Charity’s 501(c)(3) status
- Reviewing risk and organizational accountability across all sponsored projects
The Board does not manage your daily activities, but it does ensure that all projects under the Pure Charity umbrella operate within the law and uphold our shared values of transparency, responsibility, and public benefit.
🔒 Why This Governance Matters
This structure protects your mission, your donors, and the larger nonprofit ecosystem. It gives your community confidence that:
- Funds are being used appropriately
- Your work is legally and ethically grounded
- You’re not exposed to the risks or burdens of starting a nonprofit too soon
✅ In Summary
Pure Charity’s governance model combines trusted legal oversight with organizer-led flexibility. Our Board of Directors ensures that all sponsored projects uphold charitable standards, while you remain at the helm of your vision. It’s a structure built for trust, accountability, and impact.
Let me know if you'd like a version tailored for funders, team members, or organizers newer to nonprofit work.
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