Fiscal Hosting Terms of Service
About the Service
Káhareži Fondazár ("the Foundation") provides fiscal hosting (sometimes called "fiscal sponsorship") to projects and groups whose work advances the Foundation's charitable mission. Fiscal hosting allows a project that is not itself a separately incorporated tax-exempt organisation to receive tax-deductible donations and operate financially under the Foundation's 501(c)(3) umbrella, while the Foundation retains ultimate legal and financial responsibility.
This site, fiscalhosting.fondazar.org, describes the service and provides the means to apply for and (once approved) communicate with the Foundation about a sponsored project.
About Káhareži Fondazár
- Legal name: KAHARAZI VONDACIJA
- DBA: Káhareži Fondazár
- Tax status: 501(c)(3) Public Charity
- EIN: 88-2274879
- Principal address: Detroit, Michigan, USA
The Foundation is a Michigan nonprofit corporation, recognised as tax-exempt under Section 501(c)(3) of the United States Internal Revenue Code. The Foundation is a separate legal person from the Principality of Kaharagia.
Definitions
- "Foundation" means Káhareži Fondazár (KAHARAZI VONDACIJA).
- "Sponsored Project" means a project, programme, or initiative that has been formally accepted by the Foundation as a fiscally sponsored project under these Terms.
- "Project Lead" means the natural person designated as the principal point of contact for a Sponsored Project.
- "Donor" means any natural or legal person who contributes funds to a Sponsored Project through the Foundation.
- "Restricted Funds" means donations designated by the Donor for the use of a particular Sponsored Project.
- "Variance Power" has the meaning given in IRS Revenue Ruling 68-489 and means the Foundation's discretion to redirect Restricted Funds to similar charitable purposes if the Sponsored Project ceases to operate, deviates from its charitable purpose, or is unable to absorb the funds in accordance with their intended use.
Acceptance
By submitting an application for fiscal hosting, by accepting fiscal-hosting status with the Foundation, or by directing donations to a Sponsored Project of the Foundation, you acknowledge that you have read and accept these Terms and the Fiscal Hosting Privacy Notice.
The Fiscal-Hosting Relationship
Charitable Purpose Required
Fiscal hosting is available only to projects that further charitable, educational, religious, or other purposes recognised under IRC §501(c)(3). The Foundation will not host projects whose activities are inconsistent with its mission, that are organised or operated for private benefit, or that engage in prohibited political-campaign activity or substantial lobbying.
The Foundation Holds the Funds
All donations made for the benefit of a Sponsored Project are received by, and become the property of, the Foundation. The Foundation holds and disburses such funds in accordance with these Terms and applicable law.
The Project Lead and other persons associated with a Sponsored Project have no individual right or beneficial interest in funds held by the Foundation. The Foundation reports such funds in its own accounting records and includes them in its IRS Form 990 filings.
Variance Power
In accordance with IRS rules, the Foundation retains Variance Power over Restricted Funds. If a Sponsored Project ceases to operate, deviates materially from its stated charitable purpose, becomes unable to absorb the funds, or for any other reason cannot use the Restricted Funds in the manner originally intended, the Foundation may, in its sole discretion, redirect the funds to other charitable purposes consistent with the Foundation's mission.
This Variance Power is not optional and may not be waived. It is an essential element of fiscal sponsorship under US tax law and protects the deductibility of Donor contributions.
Disbursement and Approval
Disbursements from a Sponsored Project's funds may be requested by the Project Lead in accordance with procedures published by the Foundation. The Foundation reviews each disbursement request for consistency with the Sponsored Project's charitable purpose and with applicable law.
The Foundation may decline a disbursement request that is unlawful, that would jeopardise the Foundation's tax-exempt status, that would constitute private benefit, or that is otherwise inconsistent with these Terms.
Reporting and Records
The Project Lead shall provide the Foundation with such reports, receipts, invoices, and supporting documentation as the Foundation reasonably requires to discharge its accounting, audit, and IRS-reporting obligations. The Foundation may require periodic narrative and financial reports from each Sponsored Project.
The Foundation maintains the books and records of all funds it holds. The Project Lead shall not maintain separate financial accounts in the name of the Sponsored Project that purport to act on behalf of the Foundation.
Use of the Foundation's Name and Tax-Exempt Status
The Sponsored Project may represent that it is "a fiscally sponsored project of Káhareži Fondazár, a Michigan 501(c)(3) public charity (EIN 88-2274879)." This representation is the only authorised use of the Foundation's name and tax-exempt status by the Sponsored Project.
The Sponsored Project may not:
- Hold itself out as a separate 501(c)(3) organisation;
- Use the Foundation's EIN for any purpose other than to identify the Foundation as the recipient of donations to the Sponsored Project;
- Open bank accounts, enter contracts in the Foundation's name, or pledge the Foundation's credit, except as expressly authorised in writing by the Foundation;
- Use the Foundation's logo or identity in any manner suggesting endorsement of unrelated activities, persons, or organisations.
Indemnification by the Project Lead
To the extent permitted by applicable law, the Project Lead and any other persons acting on behalf of the Sponsored Project agree to indemnify and hold harmless the Foundation, its directors, officers, employees, and volunteers from any claim, loss, or liability arising out of:
- Their breach of these Terms;
- Any unauthorised representation or activity carried out in the Foundation's name;
- The Sponsored Project's activities, except to the extent caused by the Foundation's own gross negligence or willful misconduct.
Insurance
The Foundation may, at its discretion, require a Sponsored Project to obtain and maintain insurance appropriate to its activities (such as general liability, event insurance, or volunteer insurance), at the Sponsored Project's expense.
Donor Receipts and Tax Deductibility
Donations made to the Foundation for the benefit of a Sponsored Project are tax-deductible to the same extent as other donations to the Foundation, subject to applicable US federal and state law and to the donor's specific circumstances. Donor receipts are issued by the Foundation, not by the Sponsored Project.
The Foundation makes no representation about the deductibility of any specific contribution under any donor's individual circumstances. Donors should consult a qualified tax advisor.
Fees
The Foundation may charge a reasonable administrative fee in respect of fiscal hosting, expressed either as a percentage of contributions or as a flat amount. Current fees are published on the fiscal-hosting site or communicated to the Project Lead at the time of acceptance.
The Foundation may revise fees from time to time on reasonable notice to existing Sponsored Projects.
Termination of Sponsorship
The Foundation may terminate the fiscal-hosting relationship with a Sponsored Project at any time, with or without cause, on reasonable notice (or, in cases involving legal risk, fraud, or material breach, immediately and without notice).
A Sponsored Project may also request termination of the relationship at any time. On termination, remaining Restricted Funds are handled as follows:
- Where the Sponsored Project transitions to a separate 501(c)(3) organisation or to another fiscal sponsor, the Foundation may, at its discretion and subject to legal review, transfer remaining Restricted Funds to the successor organisation;
- Otherwise, the Foundation will exercise its Variance Power to direct remaining Restricted Funds to a charitable purpose consistent with the original donor intent.
Disclaimer and Limitation of Liability
The fiscal-hosting service is provided on an "AS IS" basis. The Foundation makes no warranty as to the success of any Sponsored Project, the suitability of fiscal sponsorship for any particular project, or any specific tax outcome for Donors or Project Leads.
To the fullest extent permitted by applicable law, the Foundation shall not be liable for any indirect, incidental, special, consequential, or punitive damages arising out of or relating to the fiscal-hosting service. The Foundation's total liability arising out of or relating to a Sponsored Project shall not exceed the lesser of (a) the amount of Restricted Funds held by the Foundation for that Sponsored Project at the time of the claim, or (b) one thousand United States dollars ($1,000).
Nothing in these Terms excludes or limits liability for fraud, willful misconduct, or for any liability that cannot be excluded under applicable law.
Governing Law and Dispute Resolution
These Terms are governed by the laws of the State of Michigan, USA, and the United States, without regard to conflict-of-laws principles. Disputes shall be brought in the state or federal courts located in Wayne County, Michigan, and the parties consent to the personal jurisdiction of those courts.
Use of fiscalhosting.fondazar.org
The fiscalhosting.fondazar.org website is provided as a public information resource and an application channel. Use of the site is subject to:
- These Terms (in respect of the fiscal-hosting service itself);
- The Fiscal Hosting Privacy Notice;
- The Káhareži Fondazár Terms of Use (insofar as they apply to ordinary site browsing).
Changes to These Terms
The Foundation may revise these Terms from time to time. Material changes affecting existing Sponsored Projects will be communicated to the relevant Project Lead. Continued participation following such notice constitutes acceptance of the revised Terms.
Contact
Káhareži Fondazár (KAHARAZI VONDACIJA)
Fiscal Hosting Programme
Detroit, Michigan, USA
EIN: 88-2274879
fondazar.org/contact