Chapter 3: Fundraising

Not A Non-Profit? Not A Problem.
With all of the headaches to become a non-profit, it’s easy to see why many groups decide to allow the funds raised for a skatepark to be managed by someone else. This is sometimes known as a “fiscal sponsor.” For groups not wishing to manage the finances of skatepark fundraising there are several options for recruiting a fiscal sponsor. Each option requires research and a thorough negotiation.

Most communities have several social club chapters—Elks, Lions, Eagles, Rotary, and Masons are some of the most commonly known. Most of these organizations have managed skatepark finances all over the country,and the organization’s local chapter may be happy to perform this important task.

The Parks Department may also have staff available to handle projects like this. Lots of local sports, recreation, environmental, and community-health organizations might require some financial management assistance. The Parks Department may be the entity that many of these groups turn to. Most Parks departments, as agencies of the City, are themselves nonprofits. It may be an easy matter to have them manage all of the skatepark grassroots funds.

Either option might work well for the skatepark group, but no outside organization should handle donated skatepark money without a clear and written agreement. Many entities may want to be reimbursed for their services through a percentage of the amount of money collected. While this may be a reasonable amount, it might be negotiable. It never hurts to ask. Beware of hidden fees or opportunities for the money to be appropriated for other causes unrelated to the skatepark. For example, if the skatepark site exists in a larger public park that is undergoing redevelopment, make sure that the money donated to the skatepark is applied to only the skatepark and not the skatepark surroundings. These contributions are called “ear-marked donations”—they are contributions made to nonprofits that promise to use the funds only for the use identified by the donor. It might also be appropriate to negotiate how much area around the skatepark will be funded by grassroots contributions. Perhaps the landscaping and benches might be the result of the skatepark group’s fundraising efforts. If this is the case, it would be prudent to clarify what happens if the skatepark group manages to procure donations not directly related to the skatepark; perhaps those in-kind donations can apply to the overarching target in some way.

The most important rule to remember is that if something is not clear, ask that it be explained and get it in writing. And it’s always important to have an attorney—one working on your group’s behalf—review any agreements or documents your organization’s officers sign.