There are two main types of fiscal sponsorships: Model A and Model C. In either case, the Fiscal Sponsor is the umbrella entity recognized as the 501(c)(3), and the person or entity contracting with the Fiscal Sponsor is the Fiscal Sponsee. The initiative and all funds must be received by the Sponsor — not the Sponsee. The Sponsor will disburse funds only to advance charitable purposes.

ECF operates both, although primarily Model A (comprehensive fiscal sponsorship) and Model C (where there is a pre-approved grant relationship with an unrelated entity or person). As a public charity, ECF must file its IRS Form 990 each year.

Unfortunately, you are not able to earmark funds for a specific individual — in fact, it would be against the law. If you operate a donor advised fund, you may disburse funds to qualified charities that assist individuals, but not on an earmarked basis. With fiscal sponsorship funds, there are fewer restrictions on disbursements to individuals, however you still cannot earmark funds for a specific person.

Yes. While many platforms do not offer both, Edward Charles Foundation allows you to operate both a fiscal sponsor fund and a donor advised fund under its umbrella. There are meaningful distinctions and subtleties between the two structures, and our team can help you understand which is appropriate — or how both can work in concert — for your giving goals.

This question comes up frequently. For tax-exempt entities in which funds are received by a fiscal sponsor, the funds constitute income for the fiscal sponsor at the time of receipt. Per industry standards, almost all fiscal sponsor agreements state that all proceeds received on behalf of a charitable fund — whether donor advised or fiscally sponsored — are income of the sponsor or the fund, not the sponsee.

The timeline varies by fund type and complexity, but ECF is designed to move efficiently. In many cases, a fiscal sponsorship fund can be operational within days of completing the required agreements and intake process. Donor advised funds and more complex structures may take longer depending on due diligence requirements. Our team will give you a clear timeline during your initial consultation.

Model A is a comprehensive fiscal sponsorship in which the sponsored project is fully integrated into the fiscal sponsor. The sponsor assumes full legal and financial responsibility for the project, and all funds flow through the sponsor. It is the most common structure ECF uses.

Model C is a pre-approved grant relationship. The sponsee is an independent organization that has a pre-existing, approved relationship with a third-party grantor. ECF acts as the intermediary, receiving funds from the grantor and passing them to the sponsee in compliance with applicable restrictions. It is more limited in scope than Model A.

A donor advised fund (DAF) is a charitable giving account sponsored by a public charity like ECF. A donor contributes assets — cash, securities, or other property — to the fund and receives an immediate tax deduction. The assets are then invested and grow tax-free. The donor can advise on grants to qualified charitable organizations over time.

Unlike traditional DAF platforms, ECF's DAF can accommodate non-public markets investments and more complex asset types, giving donors greater flexibility in how their charitable capital is deployed.

Yes. One of the primary advantages of operating under the ECF umbrella is that you do not need to form and maintain your own public charity. ECF's 501(c)(3) status covers your fund, allowing donors to receive tax deductions for contributions and enabling your fund to operate immediately. ECF handles the legal, compliance, and administrative burden, so you can focus on your scholarship's mission.

Yes. ECF is not precluded from making grants to international organizations, unlike many private foundations whose governing documents restrict foreign grant-making. ECF can receive US-based funds, conduct required due diligence, and disburse internationally in compliance with applicable law. This makes ECF a valuable partner for foundations and donors who wish to engage in cross-border philanthropy that their primary vehicle cannot support.

Because the fiscal sponsee operates under ECF's 501(c)(3) umbrella, ECF is responsible for filing the annual IRS Form 990 — not the individual fund. The fund's activity is reported as part of ECF's consolidated filing. This significantly reduces the administrative burden on fund holders, who are not required to file separate tax returns for their charitable fund.

The "tipping" rule refers to a scenario in which a 501(c)(3) public charity receives too high a proportion of its support from a single donor or source, potentially jeopardizing its public charity classification with the IRS. If an organization tips, it may be reclassified as a private foundation, which carries significantly greater restrictions and tax burdens.

ECF can structure a donor advised fund beneath its umbrella to allow a concentrated donor to route gifts to a related charity through the DAF rather than directly, preserving the charity's public support ratio and protecting its public charity status.

Many private foundations have governing documents or trust instruments that restrict certain types of grant-making — such as grants to foreign entities, grants to individuals, or investments in non-traditional assets. ECF, as a public charity, is generally not subject to these same restrictions. A foundation can partner with ECF to accomplish charitable objectives that fall outside its own permissible activities, with ECF conducting appropriate due diligence and disbursement in compliance with all applicable laws.

Yes. One of the most powerful applications of fiscal sponsorship is the ability to stand up a charitable fund quickly — without the time and cost of forming a new 501(c)(3). ECF can serve as the charitable umbrella for a disaster relief or emergency response initiative, allowing it to accept tax-deductible donations immediately and disburse funds to beneficiaries in an expedited manner, as demonstrated during Hurricane Harvey relief efforts.

ECF's fee structure varies depending on the type of fund, the scope of services required, and the complexity of the engagement. Fees typically take the form of a percentage of funds under management or a flat administrative fee. For specific fee information applicable to your situation, we encourage you to schedule a consultation with our team — we are committed to transparent, fair pricing.

Minimum requirements vary by fund type. ECF works with a wide range of fund sizes, from emerging charitable projects raising their first dollars to multi-million dollar engagements with institutional clients. Our team will discuss any applicable minimums during your initial consultation and help determine whether ECF is the right fit for your current stage and goals.

ECF's fees cover a comprehensive suite of back-office services depending on the engagement — including fund administration, compliance oversight, financial reporting, grant disbursement processing, IRS Form 990 filing, accounting, and access to the ECF client portal. More complex engagements may include dedicated advisory support, international disbursement coordination, and grants management. The exact scope is defined in your fund agreement.

Yes. ECF's proprietary client portal gives fund holders real-time access to their fund activity, statements, grant history, and compliance documents. The portal is designed for both individual fund holders and the advisors and family offices who manage them. Access is available at edwardcharlesfoundation.com.

ECF's technology platform is built with security as a core requirement. Fund data, financial records, and personal information are protected through encrypted connections, access controls, and audit trails. The portal requires authenticated login for all fund holders and advisors, and sensitive financial data is never accessible to unauthorized parties. For specific security documentation or compliance inquiries, contact our team directly.