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Model A Agreement
<br />2. Creation of Restricted Fund/Variance Power. Beginning on the Effective Date, CVOC shall place
<br />all gifts, grants, contributions, and other revenues received by CVOC and identified with the Project into a
<br />restricted fund to be created and used for the sole benefit of the Mission as may be defined by the City
<br />from time to time within the tax-exempt purposes of CVOC and with the written approval of CVOC (the
<br />"Fund"), The parties agree that all money and the fair market value of all property in the Fund shall be
<br />reported as the income of CVOC, for both tax purposes and for purposes of CVOC's financial statements.
<br />CVOC shall exercise full control over the Project's financial administration, management and
<br />disbursements from the Fund. It is the intent of the parties that this Agreement be interpreted to provide
<br />CVOC with variance powers necessary to enable CVOC to treat the restricted fund as CVOC's asset in
<br />accordance with Statement No. 136 issued by the Financial Accounting Standards Board while this
<br />Agreement is in effect.
<br />3. Project Activities and Sponsorship Policies. All community programs, public information work,
<br />fundraising events, processing and acknowledgment of cash and non-cash revenue items, accounts
<br />payable and receivable, negotiation of leases and contracts, disbursement of the Project funds (including
<br />grants), and other activities conducted by the Project, shall be the ultimate responsibility of CVOC and
<br />shall be conducted in the name of CVOC, beginning on the Effective Date.
<br />Unless otherwise agreed, and subject to their consent, all personnel to be compensated for working on
<br />the Project shall become at -will employees of CVOC on the Effective Date, and shall be subject to the same
<br />personnel policies and benefits as are required by law to apply to all employees of CVOC. Unless
<br />otherwise agreed, any tangible or intangible property, including intellectual property, such as copyrights,
<br />obtained from third parties or created in connection with the Project shall be the property of CVOC while
<br />this Agreement is in effect. The City shall abide by the Fiscal Sponsorship Policies of CVOC as set forth on
<br />the attached Exhibit 1, which CVOC may be amended from time to time with 60 day advance notice to the
<br />City.
<br />The Fiscal Sponsorship Policies of CVOC also include administration fees, interest, and charges for extra
<br />services, as set forth in attached Exhibit 2 and Exhibit 3, to be paid to the general fund of CVOC from the
<br />Fund. Such fees, interest, and charges are necessary to compensate CVOC for its services provided in
<br />administering the Project, and thus become unrestricted rather than restricted assets when paid to the
<br />general fund of CVOC. The Fiscal Sponsorship Policies pertaining to fees, interest, and charges set forth in
<br />Exhibit 2 may be amended from time to time by CVOC in its sole discretion with 60 day advance notice to
<br />the City.
<br />The City acknowledges receipt of the 2016 Policies and Procedures for Sponsored Projects ("P and P")
<br />and agrees to comply with all with all guidelines, rules, policies and procedures contained therein. City
<br />agrees to immediately comply with any written request from CVOC that it cease activities, which in
<br />CVOC's sole opinion, are in violation of the P and P, and further agrees that CVOC may suspend its
<br />obligation to make funds available or terminate this Agreement in the event that the City fails to comply
<br />with such request.
<br />4. Delegation. Authority to manage the activities of the Project is delegated by CVOC to the City,
<br />subject at all times to the ultimate direction and control of the CVOC Board of Directors. The City is a
<br />group of individuals that serves as a subordinate body to the CVOC Board of Directors and as an integral
<br />part of CVOC. In matters governed by this Agreement: (a) the City's separate legal existence as an
<br />unincorporated nonprofit association will be solely for the limited purpose of holding, exercising, and
<br />enforcing the contractual duties and obligations CVOC may owe to the City under this Agreement, and (b)
<br />those participating on the City shall serve as individuals only, not as representatives or agents of any
<br />funding source, employer, or any party other than CVOC. Neither the City nor any of its members shall
<br />1505 E. 171h Street, Suite 101, Santa Ana, CA 92705
<br />Tel: 714.597-6630 Fax: 714.647.0901
<br />info@charitableventuresoc.org www.charitableventuresoc.org
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