Model C Projects- What You Need To Know
Model C projects differ from Model A projects in significant ways. This section provides information relevant ONLY to Model C Projects.
What it is: A Model C project is also known as a pre-approved grant agreement. Social Good Fund has determined that your project’s activities are consistent with achieving our mission to bring positive influences into communities and as such, we have pre-approved your project to receive grants from us (from money that you have raised) to pursue your activities. This is a good resource for deepening your understanding of a Model C project.
The nature of our relationship is analogous to (but not exactly the same as) that of a foundation and its grantees, where Social Good Fund is the foundation and your legal entity is the grantee, with many of the same expectations.
Important things to keep in mind as a Model C project:
A Model C agreement is between two separate legal entities: Social Good Fund and whatever kind of legal entity your organization is e.g. an LLC, sole proprietorship, unincorporated association, etc.. Your legal entity is referred to as the Grantee in the Model C relationship.
The Model C Grantee is responsible for making sure that grant funds received from Social Good Fund are only expended on the discrete charitable purpose of the Model C project and must not be used for anything else.
It is recommended that Model C grantees establish a separate bank account just for the charitable funds you receive from us. This allows the funds to be easily tracked, in case of an audit, and helps ensure that they are not accidentally used for other purposes.
Social Good Fund and the Grantee do not share liability. Model C grantees must have their own insurance to cover their activities
Grant disbursements from SGF to a Model C grantee must be spent within the fiscal year in which the funds were requested (SGF is on a calendar year fiscal year)
Large disbursements requests (any amount over $100K) must be accompanied by an anticipated expense budget for those requested funds
Grants you receive from Social Good Fund as a Model C are a tax liability for the grantee (receiving entity). It is your responsibility to understand what your tax liability is and report it appropriately.
Social Good Fund does NOT do the accounting for a Model C- we simply make grants to you at your request from the funds you’ve raised. YOU ARE RESPONSIBLE FOR ACCOUNTING AND TRACKING OF SPENDING.
All Model C grantees MUST submit semi-annual reports when requested that includes an accounting of what the grant funds were spent on along with a narrative of what was accomplished.
In July and January of each year, we will send an email to all Model C projects requesting that you complete your report for the previous six-month period. The email will contain a link to the report form and a financial report template. Please be on the lookout for the email and complete your report before the specified deadline.
Though we may not ask for them, it is expected that you have receipts/invoices for every penny spent from the grant funds you receive from Social Good Fund and can furnish them when requested.
Social Good Fund will NOT accept government grants for Model C projects
Model C grantees may NOT donate to or regrant funds received from SGF to other entities without the express, prior approval of Social Good Fund.
To request a grant disbursement from funds you’ve raised, use the Model C Grant Disbursement Request Form on the Member’s Portal. Please allow up to 10 business days for requests to be processed (though it’s often quicker than that.)
Similarities between Model C and Model A projects. Both types:
Can engage in online fundraising using Flipcause or other platforms.
Must provide donors with a donation receipt- this is a project responsibility, Social Good Fund does NOT do this for you.
Will receive reports from Social Good Fund’s online accounting platform, Sage, once there is a minimum of $500 in the project account.
Expenditures must be for charitable purposes.
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