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Fiscal Sponsor Has No Fiduciary Duty To Sponsored Organization

Fiscal Sponsor Has No Fiduciary Duty To Sponsored Organization

Fiscal Sponsor Has No Fiduciary Duty To Sponsored Organization

Court says relationship is limited to terms of agreement, denies claim for breach of contract or fiduciary duty
A fiscal sponsor is not liable for breach of contract with its sponsored organization and has no fiduciary duty to the organization when the sponsored program goes bad, the District of Columbia Court of Appeals has affirmed. It has denied claims of the sponsored organization and granted summary judgment to the community foundation that had reluctantly agreed to take on the project. MobilizeGreen was “an upstart charitable organization” when it asked the Community Foundation for the Capital Region to serve as its fiscal sponsor in 2011. It had sought to create a national diversity internship program using funds from the U.S. Forest Service although it had not been recognized as a 501(c)(3)...

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