CHARITABLE VENTURES OF ORANGE COUNTY (10)

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Model A Agreement EXHIBIT 1 FISCAL SPONSORSHIP POLICIES OF CVOC GENERAL POLICIES 1. Tax Exempt Purposes: Charitable Ventures of Orange County is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for charitable purposes. The specific and primary purposes for which this corporation is formed are exclusively charitable, scientific, and educational within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986 (or any corresponding provision of any future United States internal revenue law). 2. The City agrees to not engage in any activity that may jeopardize the tax exempt status of CVOC. The City agrees to immediately comply with any written request from CVOC that it cease activities, which in CVOC's sole opinion, might jeopardize CVOC's tax status, and further agrees that CVOC may suspend its obligation to make funds available or terminate this Agreement in the event that the City fails to comply with such request. 3. Sponsorship benefits include the operation of the Project within a 501(c)(3) fiscal sponsor (making it possible to be funded with tax-deductible contributions), the receipting and managing of contributions, and the authorization and payment of grants and expenses from the Fund created for the charitable purposes of the Project. Sponsorship services do not include administrative support to the City or fundraising support, or financial support except as provided in Paragraph 8 below. 4. As a fiscally sponsored direct project of CVOC, the Project is an internal part of CVOC and CVOC will be legally responsible for the Project's administration, management, and disbursements from the Fund. S. An administrative fee of 9% will be charged at the time the contributions in support of the purposes of the project are received by CVOC. Such administrative fees will be paid to the general fund of CVOC and will become unrestricted rather than restricted assets when paid to the general fund of CVOC. In addition, CVOC shall retain all interest earned in connection with the funds or assets held in a restricted fund for the purposes of a fiscally -sponsored project. The minimum annual administrative fee shall be $2,000, which shall be charged at the end of the fiscal year if the minimum amount has not been met. 6. CVOC retains the right to approve payments to carry out the purposes of the Project. The City may make recommendations for the specific expenditures on behalf of the Project, which CVOC will review, and if approved, will authorize payment. 7. CVOC prepares receipts and acknowledgments for all gifts to the Fund. CVOC will provide monthly financial reports to the City. 8. The City may apply to funding sources under the auspices of CVOC, subject to CVOC's prior approval, but CVOC is not in any way responsible to the City for providing or acquiring financial support for the project. CVOC must review in advance all fundraising plans and requests for funding. In addition, all copy referencing CVOC to be used in marketing or fundraising must be approved in 1505 E. 17th Street, Suite 101, Santa Ana, CA 92705 Tel: 714.597-6630 Fax: 714.647.0901 info@charitabteventuresoc.org www.charitableventuresoc.org