02 of 08 · Fund Structure
Model C — Pre-
Approved Sponsorship
Indirect Fiscal Sponsorship
ECF’s indirect fiscal sponsorship model. Your independent organization applies for pre-approved project grants from ECF, allowing established entities to access tax-exempt funding without merging operations into ECF’s structure.
At a Glance
Legal Entity
Independent entity receives grants from ECF
ECF Back-Office
Project self-managed; ECF handles grant compliance
Partial — ECF re-grants to project upon approval
Yes — through ECF’s 501(c)(3)
Entity Requirement
Separate organization required
Ideal Profile
Established nonprofits or LLCs needing a tax-exempt conduit
How It Works
A tax-exempt conduit — for independent entities
Under Model C, your organization exists independently — it is not folded into ECF’s operations. Instead, ECF acts as a funding intermediary. Donors contribute to ECF, designating funds for your project. ECF reviews the proposed use, confirms charitable compliance, and re-grants the funds to your organization.
This structure is ideal for organizations that already have their own operations, staff, and identity but need access to tax-deductible fundraising without holding their own 501(c)(3) status — or for projects where the entity prefers to maintain its own operational independence while benefiting from ECF’s charitable umbrella.
This structure is ideal for organizations that already have their own operations, staff, and identity but need access to tax-deductible fundraising without holding their own 501(c)(3) status — or for projects where the entity prefers to maintain its own operational independence while benefiting from ECF’s charitable umbrella.
Unlike Model A, ECF does not manage day-to-day operations, payroll, or administration for the project. Your organization remains self-managed; ECF’s role is limited to grant compliance, charitable receipting, and fund administration.
Submit project for pre-approval
Your organization submits a project description to ECF. ECF reviews charitable purpose, budget, and use of funds. Pre-approval establishes a defined scope for allowable grants.Donors contribute to ECF
Supporters contribute to ECF with your project designated as the beneficiary. ECF issues tax receipts. All contributions are tax-deductible at public charity rates.3
ECF reviews and re-grants
ECF conducts required due diligence on your organization and confirms the use of funds aligns with the pre-approved project scope before disbursing grant payments.4
Your organization executes the project
Funds arrive as a grant to your organization. Your team manages operations, programming, and reporting independently — ECF monitors compliance on the grant use.Considerations
Strengths, limitations, & ideal scenarios
Advantages
What works in your favor
- Preserves the independence and identity of your existing organization
- Enables tax-deductible fundraising without requiring a 501(c)(3) of your own
- Ideal for LLCs, unincorporated associations, or for-profit entities with charitable projects
- Your team retains full operational control over project execution
- Lower administrative burden than Model A — ECF’s role is limited to grant management
- Multiple grant disbursements can be structured across a project timeline
Limitations
Where this structure has constraints
- ECF must pre-approve the project scope — open-ended or undefined projects may not qualify
- Each grant disbursement requires ECF review and approval before funds are released
- Not suitable for projects that want ECF to handle payroll, HR, or daily operations
- Re-granting adds a step to fund access — not ideal for situations requiring immediate liquidity
- Your organization must demonstrate charitable purpose and a defined project budget upfront
Best Use Scenarios
Who this structure is built for
- Established LLCs or for-profit entities with a defined charitable project needing tax-deductible donations
- Unincorporated associations or community groups that want to fundraise without forming a nonprofit
- International organizations seeking a U.S.-based tax-exempt conduit for domestic donors
- Organizations mid-transition — applying for their own 501(c)(3) while needing charitable receipting now
- Projects with clear, bounded scope and a defined budget that can be pre-approved by ECF
Illustrative Examples
What a Model C fund looks like in practice
International Organization
Foreign NGO Seeking U.S. Donor Access
An international health NGO wants to accept tax-deductible contributions from U.S.-based donors but does not hold U.S. tax-exempt status. ECF pre-approves the project, accepts U.S. donor contributions on its behalf, and re-grants funds to the NGO after confirming charitable use. U.S. donors receive full deductions; the NGO retains complete operational independence.
For-Profit with Charitable Project
LLC Running a Charitable Program
A for-profit production company wants to create a free recording program for youth in underserved communities. Because the LLC cannot directly receive tax-deductible donations, a Model C fund is established at ECF with a pre-approved project scope. Donors give to ECF; ECF re-grants to the LLC to cover defined project costs that qualify as charitable.
501(c)(3) Applicant
Nonprofit Awaiting IRS Determination
A nonprofit has filed for 501(c)(3) status but is waiting on IRS determination — a process that can take 6–12 months. A Model C fund at ECF allows them to receive tax-deductible donations in the interim. When their exemption is granted, they transition to their own status and close the ECF fund, having lost no fundraising momentum during the waiting period.
Explore other fund structures
01 / 08
Model A
Fiscal Sponsorship
02 / 08
Model C
Pre-Approved Sponsorship
03 / 08
Model L
Legacy & Memorial
04 / 08
Charitable Events
Event-Based Fundraising
05 / 08
Focus Funds
Directed Giving
06 / 08
Corporate Charitable Arms
Corporate Initiative
07 / 08
Donor Directed Investment
Investment-Driven Giving
08 / 08
Supporting Organizations
Structured Support
Ready to open your Model C fund?
Our team will review your project scope, confirm pre-approval eligibility, and have your fund ready to receive contributions within days..