Requirements for grant proposals involving a fiscal agent
It is not uncommon for groups that have not yet applied for or received a determination of their nonprofit status to work through a fiscal agent. As a fiscal agent, a group that already has established 501(c)(3) status will manage the grant funds, passing them through to the organization that will carry out the project. Proposals or letters of intent involving a fiscal agent must provide:

1. A letter on the fiscal agent organization's letterhead indicating:
   • willingness to administer the grant if awarded,
   • nature of cooperative relationship between the two entities,
   • name of executive director and contact for this grant proposal, and
   • any fee to be paid from the grant for custodial services.
2. IRS letter indicating 501(c)(3) tax-exempt status.
3. Copy of the fiscal agent's current operating budget.
4. Copy of the fiscal agent's most recent audited financial statement, including a management letter if any.
5. List of the fiscal agent's Board of Directors with their affiliations.

The fiscal agent is responsible for all financial requirements and reporting if a grant is awarded, including:

• Signing The Rhode Island Foundation award letter if a grant is made.
• Returning any unexpended funds to the Foundation at the end of the grant period.
• Expending funds and maintaining supporting records in a manner consistent with generally accepted accounting practices.
• Completing required grant progress reports in conjunction with the partnering organization.

If the organization does not complete the program as outlined in the grant proposal, the fiscal agent is responsible for any and all grantee reports due, accounting of all expenditures from the grant, and the return of any funds not spent.