In comprehensive fiscal sponsorship, the project is not an independent legal entity, so the sponsor-project relationship encompasses all of project's activities. The project functions as a program of sponsor, and mission alignment between sponsor and project is an important requirement. The sponsor-project relationship is ongoing and open-dated. Project can fundraise and direct funds to sponsor on an ongoing, perpetual basis.
The sponsor is responsible for providing all insurance, operational systems and functions, full-cycle accounting, accounts payable and receivable, personnel policies, payroll, employee benefits, taxes, licenses, local/state/federal filings and disclosures, and assumes risk and compliance burden associated with all with these items.
The sponsor on behalf of project receives, spends, and holds project's funds according to project's direction, generally accepted best practices, terms and conditions of the funding, and any other applicable laws or regulations. Project assets are restricted for project's purposes only.