In the case of an Independent Contractor (“Model B”) project, Community Initiatives sponsors the fiscally sponsored project (FSP) through a restricted fund principally for payments to an independent contractor in support of the FSP. The FSP is NOT operated as a direct project of Community Initiatives.
Under the “Model B” agreement, the contractor may be either an individual or a firm engaged to conduct the work of the project. The contractor’s work is supervised by the FSP’s mandatory Advisory Committee on behalf of Community Initiatives, but Community Initiatives is NOT responsible for programmatic operations of the FSP (for example, community programs, or public information work such as fundraising events, accounts payable and receivable, negotiation of leases and contracts, insurance*, or day-to-day use of FSP funds). All these functions, as well as incurred liabilities to third parties, are the ultimate responsibility of the contractor as of the effective date of the agreement.
The “Model B” independent contractor has full discretion and control over the selection of subcontractors. No one in a “Model B” project is considered an employee of Community Initiatives.
Please see Mutual Expectations
for guidance on the fiscal sponsorship relationship.
* Note: Community Initiatives does not provide insurance coverage for contractors; the contractor must maintain a minimum of $1,000,000 general liability insurance coverage for FSP activities.