GUIDE FOR PROJECTS

Guide for Projects, page 2

CultureTrust Greater Philadelphia












"In order to change an existing paradigm you do not struggle to try and change
the problematic model. You create a new model and make the old one obsolete."

-- R. Buckminster Fuller






We built CultureTrust Greater Philadelphia to


Give innovation in the cultural community a business back office.

Close the knowing - doing gap in Philadelphia.
(We know what needs to get done; we just dont have enough hands to do it.)

Provide affordable management to artists, creatives, historians, and preservationists.

Deliver more affordable management capacity to existing cultural nonprofits.

Reduce costly and redundant nonprofit infrastructure in our community.

Create a louder voice and stronger fundraising platform for small projects and organizations.

Build a safe haven for organizations in transition or reinvention.

Be an anchor and stabilizing force in an environment of economic uncertainty.

Support the infinite and unrelenting drive to do, to make, to save, and to create.


Do what you love to do. Leave the rest to us.




Guide for Projects, page 3
CultureTrust Greater Philadelphia


CONTENTS

PART I: Things to know before you join

1. A quick overview of CultureTrust Greater Philadelphia
The CultureTrust story
Is this the solution for me?
What do I get, and how much does it cost?
Whats the value?
How does it work?
How do I start?

2. A more complete introduction to CultureTrust
Who should use this Guide
Content overview and important terms
A brief description of CultureTrust
CultureWorks pledge of support
Reasons to join CultureTrust
Why working under CultureTrust is NOT fiscal sponsorship
The charitable business model some trends for consideration

3. The support we share and how costs are allocated among Projects
Your daily work life with CultureTrust How will my world change?
A couple example use cases (fictional, of course)
Core shared support things covered by base cost allocation
Other shared support things that require additional cost allocation

4. How to become part of CultureTrust
Three rules of the Project view of the world What is a Project?
Project eligibility and limits on activities
Project application and intake process


PART II: Things to know once youve joined

5. The basics of Project management with CultureTrust
Basic roles and responsibilities what you do, and what we do
The Project management process with CultureWorks
At-a-glance information and deadlines

6. Managing my fundraising, marketing, and public image
Ways you can receive charitable contributions
Required charitable solicitation disclosure
Approval of proposal and solicitation materials
Tax deductibility
Applying for a grant
Asking for donations from individuals
Seeking corporate sponsorship and membership
Running benefit events and fundraisers
Crowd funding and online contributions
Receiving in-kind contributions
Reporting, acknowledgements, credits, and record keeping
Your Project retains its brand and image identity
How to talk about your participation in CultureTrust
Crediting policies and placements
Graphic identity style guide and credit language
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CultureTrust Greater Philadelphia


Documentation


7. Financial and human resources management
The approval process
Financial management forms
Contracting templates
Selecting and approving vendors and hiring personnel
How to tell an employee from a contractor
Vendor, employee, and contractors selection and engagement procedures
Expense (payables) management policies
Revenue (receivables) management policies

8. All the corporate and legal stuff you ever wanted to know
How CultureTrust is legally structured
Governance and risk management
Working with children under 18 years of age
Why operating under CultureTrust is NOT fiscal sponsorship
Ownership of real property, collections, intellectual property, and technology
Existing debt and other liabilities
Balance of management powers: fiduciary vs. creative authority
Long-term ownership of your Project or organization
How a Project exits CultureTrust
Document handling and records transfer




Guide for Projects, page 5
CultureTrust Greater Philadelphia





PART I

Things to know before you join
Guide for Projects, page 6
CultureTrust Greater Philadelphia


1. A quick overview of CultureTrust Greater Philadelphia


The CultureTrust story

The concept of CultureTrust Greater Philadelphia (or just CultureTrust) was inspired in late 2010 by an
increasing need for a better and more robust solution for managing artist projects (without their own
nonprofit) and small organizations in the cultural and creative community.

At that time Thaddeus Squire, and the newly formed management services organization CultureWorks
Greater Philadelphia, had been experimenting with ways to deliver outsourced, holistic management
support to small cultural nonprofitsorganizations that struggle constantly to maintain even the most
basic infrastructure. While the need for better shared services and support was intensified by the
market crash of 2008, this problem has been endemic to the cultural sector for quite some time.
According to the Greater Philadelphia Cultural Alliance, roughly 70% of the organizations in the region
operate with budgets of less than $1 million; 40% operate with budgets smaller than $250,000.

As CultureWorks was experimenting with delivering management services to small organizations, it was
also receiving frequent requests from individual artists and cultural producers for support and fiscal
sponsorship for one-off projects and new initiatives. The increasing tendency of funders toward project
support has driven artists to work more and more outside of institutional contexts on a purely project
basis. These projects need not the ability to raise charitable funds, they also needand more acutely
direct administrative support. The common pass through fiscal sponsorship models in the cultural
sectoras offered by Fractured Atlas and the Painted Bride Arts Center, for instancesaddle the artists
with the liability and ultimate administration of the funds, something few artists are prepared for or
interested in managing. So just raising funds doesnt solve all of the challenges of individual artists.

In June 2011 Thaddeus participated in a meeting of a large group of Philadelphia performing artists
convened by theatre artists Adrienne Mackey and Bradley Wren. The meeting was focused on new
solutions for managing individual artists projects. Two messages stood out. First, individual artists have
little interest in starting new nonprofit organizations to address their fundraising and management
needs. They are wary of the cost and effort to start them, and the potential restrictions they might
place on creative and team building flexibility. Second, they strongly desire more robust management
accounting, compliance, contracting, insurance, human resources managementthan traditional fiscal
sponsors, like Fractured Atlas, typically provide. But it needs to be easy to plug into and unplug
from as people move from project to project.

Inspired by these stories, CultureWorks conducted extensive research locally in Philadelphia through
interviews with artists and funders, and nationally through field scans, benchmarking, and research
into best practices over 2011 and 2012. Extensive legal and operating modeling was done in
collaboration with attorney Peter Gulia of Fiduciary Guidance Counsel, with leading studies written by
attorney Greg Colvin, the national legal expert on fiscal sponsorship, and guidelines established by
Tides and the National Network of Fiscal Sponsors. As this research was under way, CultureWorks
wrestled with the management services model it was offering. The time and effort needed to run the
program as a pure service (with the clients external to the organization) was proving difficult to
scale uptoo much time cost relative to the costs the clients could afford. The conclusion was that to
bring this service to scale, CultureWorks would have to bring the projects and organizations in house
and serve as the direct manager and fiduciary. A new model was needed.

The result of this exhaustive research and hands-on learning was a decision to create a new program at
CultureWorks following an established model first developed by the social service organization Third
Sector New England in 1959. We decided to build a comprehensive fiscal sponsorship-type program,
delivered through a separate charitable entity, CultureTrust Greater Philadelphia, which we formed in
2013. This seemed to hold the potential to solve a number of problems. Individual artists and producers
could obtain the management support they needed, including insurances. The cultural sector would
Guide for Projects, page 7
CultureTrust Greater Philadelphia


have a platform to share back office management with a wide range and number of projects and
organizations. Funders would get a model for funding projects and smaller organizations where
management was more stable and consortium grantmaking would become easier. It provides a win
for multiple stakeholders in the cultural community and is only the second such program of its kind in
the country after Springboard for the Arts in St. Paul, Minnesota.

Ultimately, CultureTrust is the re-invention of CultureWorks former management services program in a
more scalable and sustainable form. Instead of offering these services as an outsourced solution, the
project becomes part of CultureTrust, and CultureWorks, as Trust Administrator, can provide direct
management and project oversight: better for funders, better for projects, and better for artists,
curators, producers, preservationists, organization directors, and all of the people who are inspired on
a daily basis to do, to make, to organization, and to preserve.


Is this the solution for me?


CultureTrust provides back office management, a charitable umbrella, and other benefits to

Projects led by individuals without a nonprofit or other corporate affiliation;

Existing charitable organizations looking for more/better/cheaper back office support;

Existing charitable organizations undergoing some sort of change or transition;


We support leaders of projects and organizations working in

All fields of the fine and performing arts (music, dance, theatre, visual arts, film/media);

All fields of heritage and humanities (libraries, historic sites, archives, collections, letters);

All fields of design and architecture (or anything with a design focus);

Creative or cultural projects of various hybrid or unusual varieties not yet named.


CultureTrust may not be the solution for you if

You just want to be able to raise charitable funds and administer your project all by yourself;

Your project or organization is very small in general scope and budget (i.e., <$10,000);

You dont want to participate actively in the management of your project;

Your work happens predominantly outside of the Greater Philadelphia area;

You have little interest in the social or other potential impacts beyond simply doing your work;

You want 100% control of the risks that you assume in managing your work.


Guide for Projects, page 8
CultureTrust Greater Philadelphia


What do I get, and how much does it cost?

[full-page info-graphic showing core shared resources/services and benefits and costs]

Core Support For 12% of your gross revenues (earned and contributed), you get:

o Fiduciary Oversight by a Board of Trustees
o Initial Project Assessment & Planning
o Project & Financial Management
o Procurement, Contracting, & Contract Management
o Bookkeeping, Accounting, & Compliance
o Bill Paying, Payroll Management, & Human Resources Management
o Receiving Revenue & Donor/Funder Reporting
o Basic Insurances & Insurance Administration

Other Support - For additional costs, you can get:

o Workers Compensation Insurance
o Special Insurances:
o Healthcare
o Real Property/Tenants Insurance
o Improper Sexual Conduct:
o Employee Fraud & Theft
o Non-owned & Hired Commercial Auto
o Professional Liability
o Retirement Investment
o Other Management Services


Whats the value?

[full-page info graphic on the three value propositions of CultureTrust: (a) Collective Value -
Collaborative Fundraising/Management; (b) Capacity Value - Cost Savings/Capacity Building; (c)
Consistency Value Safe Harbor for Managing Change ]


How does it work?

[full-page info-graphic showing the basic operating model/admin process for CultureTrust]


How do I start?

[full-page info-graphic showing the application and intake process]
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CultureTrust Greater Philadelphia


2. A more complete introduction to CultureTrust


Who should use this Guide

We created this guide both as a reference resource for current members of the Trust program with
projects under CultureTrust, and as an informational overview for prospective members who want to
learn about how CultureTrust works.

There are two kinds of potential participants in CultureTrust:

1. Leaders of charitable cultural projects not yet associated with a nonprofit entity.

CultureTrust is a resource for managing projects led by fine and performing artists of all kinds,
makers, designers, architects, curators, organizers, producers, and presenters who are working
within the charitable, or nonprofit arts, cultural, or creative fields.

2. Leaders of existing or legacy nonprofit organizations in the arts and culture fields.

CultureTrust also can serve as an efficient and affordable way to access back office support
for existing nonprofits of all sizes. These services include accounting, financial management,
compliance, board oversight, insurances, project and contract management, and others.


Content overview and important terms

In a general sense, this Guide is a short textbook on how to manage a charitable organization or
Project, outlining best practices and good risk management policies. The practices and policies we
describe are in principle no different than those used by the leadership of an independent nonprofit
organization engaged in good management.

In a specific sense, this Guide explains how CultureTrust Greater Philadelphia (CultureTrust or the
trust) works. CultureTrust is a nonprofit 501(c)(3) trust (federal tax-exempt status pending) that
serves as the direct management and fiduciary umbrella for arts and heritage projects and
organizations operating in the Greater Philadelphia metropolitan area.

It describes how a Project (which can be either a charitable project without an nonprofit affiliation or
an existing nonprofit organization) can become part of CultureTrust and operate under its mission. It
reviews the benefits and potential risks for a Project becoming part of CultureTrust, so you can
determine if this is the right management solution for you.

It explains how a Project Director (who is the person leading a Project) works with CultureTrust to
manage their Project. The Guide outlines the roles and responsibilities of both the Project Director and
CultureTrusts Board of Trustees, who oversee all of the trusts Projects.

You will also find information about how the Project Director works with the Trust Administrator,
which provides the management and day-to-day administrative staff for CultureTrust. The Trustees of
CultureTrust have engaged CultureWorks Greater Philadelphia (CultureWorks) to be the Trust
Administrator.

CultureWorks, which is also a nonprofit, is a service provider to CultureTrust. Both nonprofit entities
are entirely independent of each other, with no overlap in governance. As the Trust Administrator,
CultureWorks is the main point of administrative contact for CultureTrust Projects. CultureWorks
conducts its administrative function through its Trust Program.

Guide for Projects, page 10
CultureTrust Greater Philadelphia


A brief description of CultureTrust

Mission Statement: CultureTrust Greater Philadelphia fosters sustainability and impact for
creative and preservation practice through providing affordable shared management resources
for arts and heritage programs of diverse disciplines and cultural traditions.

CultureTrust Greater Philadelphia is a nonprofit 501(c)(3) trust (federal tax-exempt status pending)
that serves as the direct management and fiduciary umbrella for arts and heritage projects and
organizations operating in the Greater Philadelphia metropolitan area.

CultureTrust is governed by a Board of Trustees, which is responsible for fiduciary oversight of all of
the trusts projects. The Trustees must approve any Project that wishes to operate under CultureTrust,
and they set policies and engage other services providers to fulfill their fiduciary responsibilities.

CultureTrust contracts with CultureWorks to be the Trust Administrator. Under this agreement
CultureWorks staff is responsible for many of the day-to-day, back office functions of CultureTrust,
including bookkeeping, insurance and human resources administration, accounts payable/receivable
management, project intake and preliminary assessment, and general project management, among
other duties. The administrative face that CultureWorks provides for CultureTrust is represented
publicly by the Trust Program under CultureWorks. CultureTrust and CultureWorks, however, are fully
independent nonprofits and do not share directors/trustees, legal counsel, or accounting firms.


CultureWorks pledge of support

We will not judge your creativity or interests. We do no take a curatorial stake; we are only
committed to helping your work achieve success as you define it.

Your work and other assets belongs to you. Copyright and ownership of your intellectual
property remain with you, the maker, creator, preserver, collector, or producer.

You should spend your time making and preserving, not managing. We are here to do the
administrative heavy lifting so you have the time to make your vision real.

We will listen and respond to your concerns. If you are confused, concerned, or unhappy
please let us know. We are blazing new ground. We must learn and grow together.


Reasons to join CultureTrust

Managing risk

The principal reason for working with CultureTrust is to have an experienced co-pilot to help you
mitigate risk and better ensure success in your cultural endeavors. Managing risk for a Project has many
dimensions, most of which are about preventative measures as opposed to focusing on provisions to
help you once things go bad. For instance, it is untrue that a waiver or similar legal document can
protect you from someone intent on suing you. There is no bulletproof protection against legal action,
other than preventing failure or disagreement in the first place. So, risk management is not just about
having a good insurance policy and legal counsel. In our view it entails:

Good project planning There is no substitute for thorough and thoughtful planning.
The appropriate management team Make sure the right people are on board.
Sufficient insurance coverage Buy the right insurance for your work.
Sound financial management policies Budget and manage your financial commitments
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CultureTrust Greater Philadelphia


Best human resource practices Treat people fairly and in accordance with the law.
Mindfulness of workplace safety Keep your employees and the public out of harms way.

Most of the resources and policies outlined in this Guide and offered through CultureTrust are aimed at
positively addressing these elements of holistic project management, which in turn is also good risk
management.

CultureTrust can perform a variety of functions

CultureTrust provides a potential solution for a number of organizational circumstances common today
in the cultural community.

The forever solution: You may consider CultureTrust as a permanent solution for a specific
Project (or organization), or a succession of Projects over time. For some, this may be the best
solution for providing consistent back office support for the long term. There is no expectation
or pressure from CultureTrust to grow or get out. While it may serve as an accelerator, it
is not designed with this sole function in mind, and would not impose on organization or
Projects the restrictions typical of an accelerator.

The temporary solution: This may be the best management and support solution for an
intentionally temporary or short-term Project or initiative. As the funding community has
moved to a predominantly project-based funding approach, the cultural community has
followed suita coherent business model can be, Ill produce this project if/when a funder
writes a check, and when the project is over, Ill move on to another one. Artists and cultural
entrepreneurs are eschewing the development of permanent infrastructure, so they can move
more easily from one project to the next. Beyond the changes in production model that have
been wrought by funding policy, artists themselves are preferring the fluidity of a project-
based world, which allows for an ever-changing succession of creative collaborations. Ideas
associated with organizationsfixed costs, boards, missionsare less attractive to makers, as
they appears as barriers to the increasing fluidity and mutability of creative practice.

A platform for building capacity toward independence: Though not an accelerator (a
program aimed at growing organization to scale) in the traditional sense, CultureTrust can be
used in that way. It is a particularly good solution for start-ups or legacy organizations that are
seeking some stability while they grow (or re-tool) to achieve the next level of program,
revenue, and staff capacity.

A platform for determining which model (nonprofit or for-profit) is best/desired: Today,
many cultural entrepreneursin particular in the start-up arenaare developing concepts that
occupy the grey area between business models that could go either for-profit (with a social
good mission) or nonprofit (with an explicitly charitable mission). It is sometimes hard to
determine which is the best solution, both for the mission and the leaders/stakeholders. All
CultureTrust Projects must be charitable in nature. But a Project may start out under
CultureTrust with a charitable mission, and if it wishes to go for-profit, it can leave our
platform and strike out in a different direction.

A platform for re-inventing a legacy organization and negotiating leadership transition:
Existing or legacy organizations today, more than ever, are revisiting their program and
business models in response to dramatic changes in the philanthropic environment and general
economy. CultureTrust can provide a temporary safe haven or stable environment for
exploring new directions and models, including transitioning from long-term or founding
leadership to the next generation of organizational leadership.

A platform for collaborative approaches to fundraising and project management:
CultureTrust also serves as a platform for developing collaborative- or consortium-based
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CultureTrust Greater Philadelphia


approaches to raising funds, either for a common initiative shared among multiple Projects, or
a Project that involves multiple participants or partners. For instance, several historic sites
might apply for support from one funder for a shared programming concept. Or, a Project with
a consortium of discrete partners or collaborators may administer the Project through
CultureTrust as a neutral, third-party management platform.

A platform for exploring temporary or long-term mergers and partnerships: In similar spirit
to the previous bullet, CultureTrust can provide a facilitated and stable context for exploring
partnerships and mergers of various kinds, both among Projects/organizations under
CultureTrust and with those outside of our umbrella.

A platform for negotiating the wind up of assets: Finally, CultureTrust can provide an interim
management context for an organization or Project that desires to wind up its operations
and disperse its assets to other charitable purposes. CultureTrust does not offer legal advice or
support around this process as part of its services, but can connect Project leaders to
appropriate professionals and offer some facilitation around decision-making and process.

All this sounds good, but what, if anything, am I giving up by running my Project under CultureTrust?

In our view, the only thing that you give up as a Project of CultureTrust (as opposed to working
through your own independent nonprofit organization), is the ability to make high-risk-oriented
decisions. You and your board cannot establish your own appetite for risk; you must adhere to the risk
management provisions of CultureTrust. What does that mean?

You cant pursue your work without a complete and feasible plan, including goals, milestones,
and a clear sense of impact and what constitutes success.

You cant start a Project that you will not be able to finish or deliverfor which feasibility is
low and the risks are high for everyone involved.

You cant take on a financial commitment (sign a contract or make a promise) without having
most or all of the resources in hand to cover that commitment.

You cant pay a bill with funds not designated for that bill (or that you dont have at all)you
cant borrow, leverage, or otherwise rob Peter to pay Paul to get your Project done.

But why would you want to do any of the above? If the ability to do these things is what youre giving
up, youre really not giving up anything of value to your mission and vision. CultureTrust was created
to help creators, curators and cultural leaders succeed in their work. We recognize that cultural
projects are highly speculative in nature, and that you will not have all of the resources to execute
your Project day one. Precisely for this reason, we have created a framework of policies and best
practices coupled with support infrastructure that we hope will help you manage risk as you go, ensure
your success, and the continued growth and vitality of our cultural community.


Why working under CultureTrust is NOT fiscal sponsorship

We maintain that fiscal sponsorship has come be understood as an arms-length relationship, mostly
through the preponderance of the pre-approved grant (pass-through) model. The distant relationship
and frequent lack of direct oversight between the sponsoring organization and the project has led to
wariness and caution on the side of institutional funders and sometimes even individual donors.

With CultureTrust there is no distance between the Project and the fiduciary organization.
CultureTrust is 100% liable for delivery of the Project, which ensures the same level of oversight and
management that a program operating under an organization enjoys. The only difference is that
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CultureTrust Greater Philadelphia


CultureTrust assumes no specific curatorial or content identity, thereby allowing for a wide variety of
cultural Projects to coexist under its missionsharing back office functionswhile retaining their
individual Project identities.

For these reasons, we argue that fiscal sponsorship is a misnomer in the case of comprehensive fiscal
sponsorship. It is not fiscal sponsorship at all, in the arms-length sense that is most widely known
through the pre-approved grant model. It is instead a direct project relationship.

As a result, we do not use the terms fiscal sponsorship in connection with CultureTrust. Instead
we say, <<PROJECT NAME>> is a program of CultureTrust Greater Philadelphia. This is the
simplest and clearest way of describing your relationship to CultureTrust.

The charitable business model some trends for consideration

The charitable (nonprofit) business model in this country has changed radically over the last several
decades. There was a time when organizations could rely to a greater extent on foundation and
government support, and the support from these sources had some degrees of predictability. Today,
foundation and government grantmaking is spread very thin and competition for funding is exceedingly
high. Also, with the increasing use of peer panel review processes, discretionary grantmaking has
declined, leaving no real prediction model for this kind of revenue. So, you cant really budget for
grants, unless you have the ability to wait until one comes through. In general, if you want more
control over when and how you do your work, we recommend keeping foundation and government
grant revenues at less than 25% of your operating budget.

The good news is that individual giving is as strong as ever, and more people in the nonprofit sector are
thinking entrepreneurially about how to generate more earned revenues. Indeed, many organizations,
which had relied on foundation and government grants are now re-tooling their business model to focus
on individual contributions and earned revenues.

This leaves us with two fundamental business models and sets of assumptions:

The project-based business model, in which when you do the Project is flexibleyou do it
when you have the funds to pay for it. A coherent business model can be, Ill do the project
when a grantmaker writes the check. In this approach, there is no assumption of ongoing
activities or long-term operations. The Project exists when and for how long funding exists. In
this model, foundation and government revenues can be very high, since there is no need to
build a prediction model for revenues over the long term, and you can wait until one (or more)
funders comes through to begin to execute the Project.

The going concern or scalable model, in which you want/need to have much more control
over when and where your Projects activities occur, and you have fixed ongoing costs
(salaries, retained services, etc.) that require monthly payment. For these models, grants are
very ill-suited, since they are hard to predict, take months to process, and carry low odds of
success. To make this model work, you really need to focus on earned revenues and individual
giving, since these income streams are more readily controllable and allow for prediction
models and performance analytics to be generated to help with budgeting, predicting cash
flows, and managing ongoing operations.

As you consider the model for your Project, it is important to think about the relationship between
revenues streams (and when and how you can generate them) and expenses. For a going concern, you
need fixed (or reasonably predictable) revenu streams that can map to your fixed costs. For episodic,
or more project-based models, you can often manage your risk by having both revenue and expense be
variable. Expenses need to be moveable in time depending on when grants or revenue is generated, so
that you are not left holding expenses without any money to cover them.
Guide for Projects, page 14
CultureTrust Greater Philadelphia


3. The support we share, and how costs are allocated among Projects


Your daily work life with CultureTrust How will my world change?

As you consider joining CultureTrust and take stock of the policies and procedures contained in this
Guide, you may be thinking, Boy, this looks like a lot of work and complexity! Is it worth it? Well, to
help think about what its like to work with CultureTrust, we have included in the following section a
couple of fictional use cases as samples.

This Guide does not just contain policies and procedures. It also contains valuable information on how
to manage your Project and raise funds successfullya handbook on cultural management. The
CultureTrust website also contains a number of at-a-glance resources for keeping track of key dates, as
well as grant deadlines.

To reduce things to their most simple terms

You gain access to the following resources:

An expert core management staffa true co-pilot for your work
Basic insurances and a set of legal instruments and tools to manage risk
Your financial liabilities attached to an entity other than you (personally) or your organization
Flexibility to plug into and unplug from CultureTrust as a management resource
The ability to raise charitable funds without the hassle of managing your own nonprofit
A cash-flow-friendly cost allocation structureyou only pay when you have funds to do so
Access to affordable additional support for grant writing, marketing, and other needs

And your regular (monthly) administrative commitments relative to CultureTrust are basically:

A monthly administrative and strategy check-in with the Trust Manager (phone or in person)
Once per month e-mailing in a payroll report for the previous month (if relevant)
Twice per month e-mailing in other financial payment or contracting forms

Beyond that, you are raising funds and working on your Project, as you would with or without
CultureTrust. Only with CultureTrust, you have a whole bunch of resources at your fingertips and
a team of cheerleaders who are interested and committed to the success of your work.

! We want you to spend less time managing and more time making.
A couple of sample use cases (fictional, of course)

(1) UNORGANIZED PROJECTS Artistic or cultural projects (short-term or long-term) without a
nonprofit corporation/umbrella or other management structure.

Mary Ann Theatrical is a theatre artist who wants to produce a new play, Mad Production X, and
present it in Philadelphia. She decides to work with CultureTrust. She becomes a member of the
CultureWorks at $40/month, for which she receives all of the benefits of coworkingcommunity, space
to work and meet donors, technology, and professional development programming.

Guide for Projects, page 15
CultureTrust Greater Philadelphia


She fills out an application for CultureTrusta series of short narratives about her project and a set of
budgets and submits them to the Trust Program. The Trust Manager at CultureWorks has some
questions and concerns about the project and works with Mary Ann to refine her proposal and
strengthen her project plan. CultureTrusts Board of Trustees accepts her project at their quarterly
meeting! Mary Ann signs a Subtrust Declaration Letter, and pays $150 to cover her share of General
Liability insurance. Shes now set up and she begins her fundraising and production work.

Contributions and grants are written to CultureTrust and deposited with her subtrust. As contracting
needs and expenses arise she submits purchase orders and contract requests to CultureTrust through
CultureWorks. CultureTrust pays her bills and contractors directly. She decides not to use
CultureTrusts standard Performer Agreement, instead favoring an Actors Equity Association contract,
which is no problem for CultureTrust. CultureTrust also provides all of her general liability, workers
compensation, and other insurances. She works from the coworking space and several times a month,
she buys some time from the CultureWorks Fellows to help with grant proposals, donor letters, and
marketing copy. A month before the show, she holds a private reading and donor cultivation event in
the CultureWorks all-purpose space, and Mad Production X opens to rave reviews three weeks later.
Following the production CultureTrust, with Mary Anns help, wraps up all of the projects business and
completes all of the grant reports and donor stewardship.

BY THE NUMBERS: She spends $480 on her coworking membership for 12 months. Her project costs
$75,000 to produce, and she meets her attendance and sales projections. For her Project, $9,000 is
allocated (at CultureTrusts base rate of 12% of revenues) which covers project management,
accounting, compliance, reporting, donor stewardship, the ability to receive contributions, and all
insurances. In addition, she buys 60 hours of Fellow time (@ $15/hour) for a total of $900.

For a $75,000 project, she pays a total of $9,900 for a nonprofit umbrella, expert management
support, office space, a peer network, technology, and event/meeting spacesall of which she can
unplug from as easily as she plugged in.


(2) NONPROFIT ORGANIZATIONS Entities with their own 501(c)(3), and possibly also material or
real property assets, but choose to secure their back office management and other core
infrastructure through CultureTrust.

The Remarkably Historical House has survived over 200 years of American history, including cannonball
fire during the Civil War and race riots in the 1970s. It has a small but committed group of
preservationists and community members that rally behind its preservation and populate the board if
its nonprofit, Remarkably Historical House Inc., which was formed in 1979 in the wake of the post-
Bicentennial historic house revival in America. Today it finds itself struggling to maintain a donor base,
and grants seem to be dwindling by the year. Through an enthusiastic corps of donors and steady
volunteer efforts it keeps its building nominally maintained, runs a series of interpretive programs, and
manages a modest annual budget of $85,000. Its core management and operating staff is made up of
volunteers, and the Board contracts accounting services and other professional support as needed.

After careful consideration, the Board votes to transfer business operations of Remarkably Historical
House to CultureTrust to save money on operations and increase the quality and amount of
management support and fundraising reach. John Q. Preserve, president of the board, becomes a basic
member of CultureWorks Coworking Program at $40/month, for which he receives all of the benefits
of coworkingcommunity, space to work and meet donors, technology, and professional development
programming.

John fills out an application for CultureTrusta series of short narratives about his project and a set of
budgets and submits them to the Trust Program. The Trust Manager at CultureWorks has some
questions and concerns about the project and works with John to refine her proposal and strengthen
his project plan for the next season of programs at Remarkably Historical House. CultureTrusts Board
Guide for Projects, page 16
CultureTrust Greater Philadelphia


of Trustees accepts her project at their quarterly meeting! John signs a Subtrust Declaration Letter,
and pays $300 to cover the Projects share of General Liability insurance. John and his colleagues are
now set up and can begin operating under CultureTrust.

Upon acceptance to CultureTrust the Board of Remarkably Historical House shifts all finances and
business relationships, including all insurances to CultureTrust. Remarkably Historical House Inc. (as a
corporate entity) remains intact, but dormant, and retains legal title to the House and its collections,
which are still under the fiduciary and stewardship control of the Houses original Board of Directors.
CultureTrust, and its Board of Trustees, however, become the fiduciaries of Remarkably Historical
Houses day-to-day operations. The Board of Remarkably Historical House Inc. no longer needs
Directors & Officers insuranceas financial activity and liability is no longer flowing through the
nonprofitand it performs minimum compliance to retain the dormant Remarkably Historical House
Inc., in case in the future it should wish to exit CultureTrust and return to its prior operating structure.
The Board becomes an advisory body and John the Project Manager for the Houses account under
CultureTrust.

BY THE NUMBERS: Prior to joining CultureTrust, Remarkably Historical House Inc. paid on average each
year $4,500 in general liability and directors and officers insurance, $4,000 in bookkeeping and CPA
fees, as well as $3,000 for grant writing and $4,000 for marketing and PR support (a total of $15,500 in
general administration per year). In addition, prior to CultureTrust, board members spent an average
of 8 hours per week on general administrative issuesmostly related to financial and contract
management. Under CultureTrust, it spends $10,200 to CultureTrust (12% of $85,000) for accounting,
compliance, general management, and general liability and directors and officers insurance, and buys
80 hours of Fellows time for proposal writing and marketing support at $15/hr. ($1,200) for a total of
$11,400. Though only a direct cost savings of $4,100, Remarkably Historic House has gained a flexible
and much more effective support capacity with administrative services it couldnt afford before. This
has allowed John and his colleagues to focus more time on programs and fundraising.
Guide for Projects, page 17
CultureTrust Greater Philadelphia


Core shared support Things covered by base cost allocation



The above core resource cost allocation covers the shared support outlined below. Most of these
management tasks are performed by CultureWorks under its Administrator Agreement with
CultureTrust. All other essential costs unique to the Project are the responsibility of the Project
Director and other Project staff to deliver, such as artistic staff, production costs, marketing,
fundraising, etc.any costs that are necessary to deliver the promised outcomes of the Project. These
other costs are paid for by Project funds.

o Fiduciary Oversight by a Board of Trustees: All Projects will be reviewed, approved, and
overseen by CultureTrusts Board of Trustees, which has ultimate fiduciary responsibility for all
CultureTrust activities.

o Initial Project Assessment & Planning: CultureWorks will administer the intake process for
new Projects for CultureTrust. The process of initially assessing Project feasibility will be a
valuable service to Project Directors. CultureWorks recommends Projects to the Board of
Trustees of CultureTrust for approval. If a Project seems unfeasible, CultureWorks may make
recommendations for how a Projects concept and planning might be improved. CultureWorks
may also recommend participation in its other programs such as the Prep Program, which offers
strategic and business planning support.

o Project & Financial Management: Once a Project has been accepted by CultureTrust and the
project is set up and active, CultureWorks staff will monitor progress and advise Project
Directors on strategy. CultureWorks assists CultureTrust in ensuring that Projects meet funder
requirements, follow financial management policies and procedures, and attain successful
outcomes.

o Procurement, Contracting, & Contract Management: CultureWorks manages the procurement
and contracting of employees, independent contractors, vendors, and other resources, with
instruction from the Project Director. CultureWorks may recommend service providers and
vendors that might benefit a Project, where appropriate or requested.

o Bookkeeping, Accounting, & Compliance: CultureWorks performs all bookkeeping, accounting,
and fund management for all Projects. It also supports the annual compliance process for
CultureTrust in cooperation with the independent accounting firm hired by the Trustees. This
includes preparing information for CultureTrusts financial statements, IRS Form 990, 1099 and
employer tax filings, Pennsylvania Cultural Data Project filing, and registration with the Bureau
of Charitable Organizations (BCO). The Trustees are responsible for completing all of the
nonprofit compliance processes and reporting to regulators for all of the Projects under
CultureTrust.

o Bill Paying, Payroll Management, & Human Resources Management: CultureWorks will also
manage all accounts payable and receivable, including bill paying and management of payroll
services for those Projects with W2 employees. CultureWorks will perform many of the tasks
that a human resource manager would, including assisting with job postings/descriptions, offer
letters, employee benefits administration, and providing advice on general human resources
best practices.

Core supporting resource costs are allocated at a base rate of 12% of gross receipts (earned and
contributed) for the Project. Allocations are assessed once a month on all new receipts.

Guide for Projects, page 18
CultureTrust Greater Philadelphia


o Receiving Revenue & Donor/Funder Reporting: CultureTrust is the receiver of all Project
revenues, both those contributed from donors and funders and earned revenues from all
sources (tickets, merchandise, licenses, service fees, etc.). All of these transactions are
tracked for donor/funder reporting and analyzing financial performance. CultureWorks also
manages all donor acknowledgement and funder reporting, in collaboration with the Project
Director.

o Basic Insurances & Insurance Administration: CultureTrust will maintain Directors and
Officers and General Liability insurances as part of the base cost allocation. If a separately
organized charitable corporation has its own General Liability insurance that is satisfactory to
the Trustees and provides satisfactory coverage to CultureTrust, the Trustees may consider a
different allocation to be charged against such a subtrust. All projects fall under the Directors
and Officers insurance of CultureTrust. This insurance covers legal costs for the Trustees if they
should be involved in a legal dispute concerning a Project. This insurance does not pay for
damages or monies owed to creditors.

While General Liability and Directors and Officers insurances are included in the base rate of
12% of gross receipts for all Projects, we require that all projects allocate in advance (as a
pre-paid expense) their share of General Liability insurance to make their Project active
under CultureTrust. No Project is active until the Project buys into CultureTrusts General
Liability policy. CultureTrust will then deduct this expense from its accounting of the first
administrative cost allocations made from your subtrust account.

Finally, CultureWorks, in its function as administrator, will provide assistance and support in
securing special insurances (see below), providing proof of insurance for contract compliance
purposes with vendors, and administering claims-related work.


Other shared support Things that require additional cost allocation



REQUIRED

o Workers Compensation Insurance: CultureTrust requires Workers Compensation insurance for
all contractors and employees of Projects and will allocate the appropriate cost of this
insurance to each Project. This insurance is not included in the 12% base cost allocation.
Workers Compensation insurance is billed out per each Projects current Workers
Compensation insurance rate for CultureTrust, which may change from time to time based on
the term of the policy and the kinds of Projects that are active. The cost allocated to an
individual Project is based on the total payroll (1099MISC and W2) for the Project for the
duration of the policy, or the duration of the Project, whichever is longer. If the policy rate
changes in the middle of a Projects duration, the effective rates for calculating cost
allocations to Projects will change, and Project Directors will be notified of the change in rate.

Beyond the core support allocation, CultureTrust requires all Projects to maintain Workers
Compensation Insurance, and this insurance is subject to an allocation above base costs in
proportion to the Projects payments to contractors and employees.

There are also a number of resources that are optional for Projects operating under
CultureTrust. These resources also bear additional cost allocation, should the Project Director
wish to take advantage of the resource.
Guide for Projects, page 19
CultureTrust Greater Philadelphia


OPTIONAL

o Special Insurances: Projects may require special insurances, whose costs are allocated to the
relevant Project, per its needs and exposure. These insurances include, but are not limited to:

o Healthcare: Assuming CultureTrust maintains two or more W2 employees at all times
among its Projects, the trust will be eligible to take out a group healthcare insurance
policy in which any CultureTrust employee may take part. Separately brokered health
insurance policies or special coverages may also be obtained.

o Real Property/Tenants Insurance: Your participation in CultureTrust constitutes an
insurable interest in any real Property that the Project may own, or in leased
property in which the Project operates. This allows CultureTrust to take out insurance
in its name for a Projects real property, which can include furnishings, equipment,
special collections, artwork and other assets. Savings may be achieved through multiple
Projects taking part in one real property insurance policy. For instance, several historic
sites may collectively buy their property insurance, and provided there is no substantial
claims history, the cost of the coverage may drop through aggregating risk.

o Improper Sexual Conduct: If your Project works with children under the age of 18
years of age, your Project will need to take out insurance coverage for Improper Sexual
Conduct.

o Employee Fraud & Theft: If your Project has multiple employees handling assets or
processes that offer a substantial risk of fraud or theft, additional insurance can be
obtained to cover such exposures.

o Non-owned & Hired Commercial Auto: If your Project frequently rents automobiles,
and you dont want you or the Projects employees to be personally liable, additional
non-owned and hired auto insurance will need to be purchased.

o Professional Liability: If your Project provides any services that present substantial
malpractice risk of doing harm to clients or customers, then your Project may need to
purchase additional professional liability coverage.

o Retirement Investment: As the employer of employees allocated to Projects, CultureTrust will
establish, maintain, and administer a retirement plan under Internal Revenue Code 403(b).
Through pro bono contributions from registered investment advisers, well make retirement
planning education and investment advice available to CultureTrust employees.

o Other Management Services: In addition to the above additional services, we will be able to
offer on an hourly basis, through our staff and CultureWorks Fellows, other management
support, such as grant writing, individual donor campaign management, business and strategic
planning, marketing and branding support, and other services.
Guide for Projects, page 20
CultureTrust Greater Philadelphia


4. How to become part of CultureTrust


Three rules of the Project view of the world What is a Project?

Since CultureTrust supports Projects, we should define what constitutes a Project. We have
established three basic rules of our Project-based approach:

1. Have a goal and a timeline.

CultureTrust takes a project-based view of the world, regardless of how long a project takes to
complete or how big a Project is in budget or production scale, you need to define a beginning, end,
and set of outcomes/deliverables for your Project.

For leaders of cultural projects that do not have a nonprofit organization, it is possible to produce
multiple, successive projects. Each Project, however, must go through a re-application and acceptance
process. The re-application process, though, will be less involved, as much of the key attributes of the
applicant will be known to our staff and board. Or, you can apply for several Projects together, if they
constitute a discrete initiative.

For leaders of existing or legacy nonprofit organizations or episodic/ongoing initiatives, you can
define your Project as a discrete period of organizational activity, such as a concert or programming
season, or a series of programs or initiatives. As with Projects without an organization, each Project
cycle must go through a re-application and approval process.

2. If youre in for a dime, youre in for a dollar.

Because CultureTrust assumes 100% of financial (contractors, employees, vendors) and insurance
responsibility for the Project, your subtrust account needs to receive all of the revenue related to the
Project. If CultureTrust is paying all of the bills, it needs to receive all of the revenue.

This includes all contributed revenues (donations, grants, in-kind contributions), and earned revenues
(from ticket/merchandise sales, program/service fees, sponsorship). Note that this is one of the chief
differences between CultureTrust and the popular pre-approved grant model (such as Fractured Atlas).
The latter only deals with contributed revenue, because the main purpose of the model is to allow
Projects without charitable status to solicit contributions. This is not the main focus of CultureTrust.
We are interested in providing more comprehensive, efficient, and effective administration of your
Project, which necessarily requires a holistic embrace of revenues and expenses.

3. You cant split the baby.

Similar to the above, if CultureTrust is assuming all of the insurance liability for your Project, you
cannot split cost and revenue centers with other partners or organizations.

For instance, if you should want to apply for a grant through an organization other than CultureTrust
and youre successful with the application, the grant funds still need to ultimately be received by your
subtrust account at CultureTrust.

You might argue that you could split both cost and revenue centers off to another organization. For
instance, your grant might pay for three artists to make work for your Project, and you could argue
that if the funds were raised through the other organization, and the fees to those artists were also
paid by that organization, then there shouldnt be a problem. Not so. Since CultureTrust is assuming
liability for the entire Project, it needs to retain control over how funds are raised, contracted, and
paid out for all aspects of the Project, making the above scenario of splitting both cost and revenue
centers problematic.
Guide for Projects, page 21
CultureTrust Greater Philadelphia


Project eligibility and limits on activities

Projects seeking to join CultureTrust must comply with the following eligibility and criteria:

1. Charitable Status: The Project must comply with the guidelines for exempt activities under
section 501(c)(3) of the Internal Revenue Code. Furthermore, the Project must fall within the
fields of arts, heritage, or creative work, per the mission of CultureTrust.

2. Quality of the Concept/Organization: The project or organization (if applying as separately
incorporated nonprofit) must demonstrate value or significance with respect to the field in
which it is situated.

3. Impact Model: The Project must articulate a clear set of goals and a clear model for
whom/what it intends to impact and how. All Projects must also demonstrate their ability to
be financially accessible to under-served populations, through offering some manner of free,
discounted, or otherwise specially delivered programs and services.

4. Quality of Leadership: The Projects leadership and core team must be able to complete the
Project in accordance with donor and funder expectations. Both the concept for the Project
and the leadership need to be assessed as strong and meriting support. Leaderships track
record in fundraising and earned revenue generation as well as creation and production will be
a key factor in this point of the assessment.

5. Quality/Relevance of Key Staff & Contractors: The Projects prospective key vendors and
personnel must also be sufficient (in number and function) as well as overall quality and
reputation for CultureTrust to be assured the Project will be completed.

6. Project Context & Timeline: We must understand the context for the Project within the
overall work of the Project team or Leader, as well as evaluate the feasibility of the proposed
timeline and implementation of the Project.

7. Financial & Delivery Feasibility: The Project must submit both a Contingency and a Full
Project Budget, including detailed revenue plans for both. CultureTrust must be satisfied,
based on the past fundraising and marketing track record of Project leadership, that 100% of
the cash and in-kind resources named in the Contingency Budget are likely to be achieved in
the time frame proposed for the Project.

Owing to limits on our insurance and risk management policies, we cannot accept projects that:

Involve open flame, pyrotechnics, fireworks, or other incendiary devices since this is not
covered under our General Liability insurance policy;

Involve regulated hazardous materials - since this is not covered under our General Liability
insurance policy;

Incorporate live animals or insects - since this is not covered under our General Liability
insurance policy;

Take place within the State of New York Since New York State has very different insurance
regulations, and our current insurance policies do not accommodate these regulations.

NOTE: If your Project involves direct work with children under 18 years of age, you may need to
procure additional special insurance and undertake background checks and other specific hiring,
training, and supervisory procedures. See Section 8, Working with children under 18 years of age for
more details.
Guide for Projects, page 22
CultureTrust Greater Philadelphia


Project application and intake process



STEP 1 Talk or meet with us. To save time and effort and address and questions not answered by this
Guide, we recommend that you speak or meet with a member of CultureWorks staff before completing
a full application. Sometimes a short phone call is all thats needed; other times, a more in-depth
meeting and discovery is needed to troubleshoot Projects with unusual parameters and circumstances.
You may contact Liz Sytsma at lsytsma [at] cultureworksphila.org or 267 597 3804 or Thaddeus Squire
at tsquire [at] cultureworksphila.org or 267 597 3803.

STEP 2 - Complete and submit an application. A rigorous review process is undertaken by
CultureWorks staff before a Project is recommended to the Board of Trustees of CultureTrust for
acceptance. CultureWorks staff will send you electronically an Application Packet, which is not
available online. Project Directors must complete the application, which includes the following:

a. Narrative Description A maximum two-page description of the Project, including its
main personnel and other key vendors/resources and expected outcomes and/or
promised deliverables, addressing key questions about your Project.

b. Full Budget A full or ideal budget for the Project, including both revenues (cash and
in-kind) and expenses (cash and in-kind), using a standard set of accounts.

c. Contingency Budget A contingency budget for the Project, including both revenues
(cash and in-kind) and expenses (cash and in-kind), using a standard set of accounts.

d. Plan of Work A general timeline and overview of major implementation steps,
milestones, and resource allocations.

e. Key Personnel Bios Short bios for key personnel, contractors, vendors, or any other
human resources that are essential to the success of your Project.

f. General & Special Insurance Applications You will need to fill out a standard
insurance application to be included in CultureTrusts General Liability insurance
policy, so we can assess costs and liability exposures for your Project in advance. Also,
if your Project requires any special insurance coverage, additional applications may be
required. (See optional insurances on page 11.)

g. Additional Materials as Requested CultureWorks staff may request further
clarification, revision, or additional information. For instance, unlike most
grantmakers, we will not require bios or qualifications for all Project personnel and
vendors, since most will be local and known to us. But we may request that a Project
provide more information for key personnel/vendors before the Project is accepted.

Below are the steps to becoming a Project of CultureTrust.

Please note that you are not part of CultureTrust and cannot represent to other parties that
you are part of CultureTrust until all four of the below statements are true:

Your project has been approved by the Board of Trustees of CultureTrust.
You have signed a Subtrust Declaration Letter.
You have deposited/allocated your Projects full share of General Liability insurance.
You have signed up for a coworking membership with CultureWorks (at any level).

Guide for Projects, page 23
CultureTrust Greater Philadelphia


STEP 3 - Project review by CultureWorks. With these application materials in hand, CultureWorks
staff will review the Project and determine if it meets the core assessment criteria. If a Project does
not meet all of the criteria, or if there are questions or aspects of the Project that are not sufficiently
clear, CultureWorks will seek clarification and/or make recommendations about how it may be
improved or further developed to meet criteria.

STEP 4 - Project approval by CultureTrusts Board of Trustees. If the Project meets our criteria for
acceptance and seems feasible and well planned, CultureWorks staff will recommend the Project to
the CultureTrust Board of Trustees. Projects must be accepted by the Board of Trustees during one of
their quarterly meetings or, if CultureWorks is convinced there is urgent need for approval, through
unanimous electronic written consent of the full Board. The quarterly meeting schedule of the Board of
Trustees will be posted on the CultureTrust website.

STEP 5 Join CultureWorks coworking program. As part of CultureWorks Trust Administration
Agreement, membership (at any level) for the Project Director in CultureWorks coworking program is
required for any Project under CultureTrust. Memberships are available starting at $40/month, and
Project Directors must be members for at least six months or the duration of the Project, whichever is
longer. This cost is additional to the 12% base administrative cost allocation made for all Projects
under CultureTrust. Membership fees may be paid to CultureWorks directly out of your Projects
subtrust account, or personally through other means and reimbursed from the Project account. You will
need to sign up for coworking membership directly with CultureWorks by contacting Zach Lifton at
zlifton [at] cultureworksphila.org or 267 597 3808.

STEP 6 Sign a Subtrust Declaration Letter and deposit/allocate your share of General Liability
insurance. As part of the final step in making your Project active, you must sign a Subtrust
Declaration Letter, which is the document that establishes an account under CultureTrust in the name
of your Project, and names you as Project Director. This gives you the power to instruct CultureTrust
about your Project, as well as whistle blow, if you feel that your Project is being mismanaged. This
Declaration Letter is not a contract and does not bind you individually to any liability, nor does it
require you to have a corporation or other entity (or Employer Identification Number (EIN). It is simply
an operating agreement with you as an individual, explaining your responsibilities and powers.

Once you have signed a Subtrust Declaration Letter, you must deposit the full amount of your Projects
share of General Liability insurance (if you are opening your Projects subtrust account without any
initial cash deposit). CultureWorks will inform you of the amount of this cost, based on the insurance
application you submitted as part of your application. (See STEP 2.) This allows your Project to be
covered by CultureTrusts General Liability insurance policy on day one, regardless of whether you
have any financial activity at the outset of your Project. If youre opening your subtrust account with
enough cash to cover this amount, CultureTrust will simply allocate those costs directly to cover your
share of insurance. In either case, this cost is deducted from the first 12% of administrative cost
allocations made from the revenues received by your Project. General Liability insurance is included
in the 12% overall administrative cost allocation for all Projects.


Congratulations! You are now officially a Project of CultureTrust Greater Philadelphia.
About General Liability Insurance: If your Project is accepted, the minimum funds required to activate
your account are the funds required to cover your share of General Liability insurance. By simply adding
your Project to an existing policy, you are saving considerable money in underwriting costs. For instance,
a $150,000 Project may pay anywhere from $1,200 - $2,500 per year for a General Liability policy, much
of which are the minimum administrative expenses charged by the insurance company to underwrite and
create the new policy. The same Project joining CultureTrust will be charged an incremental amount to
extend the coverage of CultureTrusts existing policy, which would likely fall between $100 and $500 per
year for the example Project. This represents a substantial cost savings over buying your own policy.
Guide for Projects, page 24
CultureTrust Greater Philadelphia








PART II

Things to know once youve joined
Guide for Projects, page 25
CultureTrust Greater Philadelphia


5. The basics of Project management with CultureTrust


Roles and responsibilities what you do, and what we do

The responsibilities of the Project Director and her team:

Overall Project Vision & Leadership: The Project Director is responsible for the overall vision
and direction of the Project, including developing the concept, key partners, selecting
personnel, vendors, scheduling, and general production and leadership. The Project Director is
the Managing Director of the Project. You are the public face of you Projet.

Fundraising Leadership & Revenue Generation & Donor/Client Relations: You are chiefly
responsible for the financial health of your project. This means you are leading all fundraising
efforts, marketing, and the development and management of earned revenue streams. While
CultureWorks will support your general development efforts administratively (such as reviewing
grants, offering informal advice, providing financial reports, etc.), you are responsible for all
required reporting to funders and donor stewardship. Relationships with donors and funders are
your relationships.

Instructing CultureWorks: You are the chief point of contact and instruction for CultureWorks
as its staff help you manage your Project. You are responsible for submitting all forms and
finance-related documentation, as well as any other documentation CultureWorks needs to
ensure your Projects success.

The responsibilities of CultureTrust & CultureWorks as Trust Administrator:

Fiduciary Oversight: The Board of Trustees of CultureTrust provide general fiduciary oversight
for all CultureTrust projects. The Board has ultimate authority to set financial and other
policies and approve expenses. They have contracted with CultureWorks to be their
administrator and carry out the financial management policies outlined in this Guide.

Accounting/Compliance & Insurance/HR Administration: CultureWorks ensures that all of the
core administrative and management support is provided to CultureTrust projects, as described
in Section 4 of the Guide. These include, accounting, compliance, insurance and human
resources administration, bookkeeping, and some degree of Project management.

Contracting & Procurement: CultureWorks staff administers approved purchase transactions,
vendor/service contracting, and employee contracting and payroll. CultureTrust maintains a
set of standard contract templates, but may also use contracts provided by vendors, and will
take care of any legal due diligence, as needed. CultureTrust is also prepared to use standard
union contracts for the major arts-related unions: American Federation of Musicians (AFM),
International Alliance of Theatrical Stage Employees (IATSE), American Guild of Musical Artists
(AGMA), and Actors Equity Association (AEA). CultureWorks will administer any special
insurance-related verification or documentation related to contract compliance.

Fundraising & Stewardship Oversight: CultureWorks will monitor, provide constructive input
on, and approve all grant applications, individual solicitations, and the reporting and
stewardship process for the contributed revenues received by CultureTrust. The Project
Director is primarily responsible for fundraising and revenue generation, but CultureWorks will
monitor and support the fundraising process to ensure that best practices are followed. For
instance, CultureWorks will formally acknowledge all individual donations and notify the
Project Director about the gift and its particulars. It is up to the Project Director to
communicate with the donor or funder and manage their relationship themselves.
Guide for Projects, page 26
CultureTrust Greater Philadelphia



Referring to Other Services/Resources: CultureWorks will also help connect you to other
services, whether those are ones provided by CultureWorks other programs or providers within
the general community.


The Project management process with CultureWorks

The core management rhythm for any Project under CultureTrust revolves around financial
management (expenditure and revenue generation) and contracting processes:

Monthly Meetings/Check-ins: CultureWorks checks in (either by phone or in person) with all
Project Directors at least once per month to review status and progress, trouble shoot
problems, and offer advice on strategy and implementation. A monthly review of you subtrust
account will be included in this check-in, including a look at current payables and the
upcoming flow of revenues and expenses to keep the Project on target.

Monthly Financial Management: CultureTrust will accept all receivables on an ongoing basis,
electronically and by mail. CultureTrust will cut checks twice per month, on a fixed schedule.
Emergency check cutting is available for a surcharge. Payroll for all Projects will be run once
per month at the top of the month for hours worked in the previous month. (See Financial
Management below for more details.)




Communicating with CultureTrust

All communications and transactions with CultureTrust are managed by CultureWorks, and any in-
person meetings or transactions are held at CultureWorks office (address below).

As a Project of CultureTrust, your chief point of contact is the PROJECT MANAGER:

Liz Sytsma
lsytsma [at] cultureworksphila.org
267 597 3804 T
267 597 3811 F

All checks and hard-copy paperwork should be sent to:

Liz Sytsma, Project Manager
ATTN.: <<PROJECT NAME>>
CultureWorks Greater Philadelphia
The Philadelphia Building
1315 Walnut Street, Suite 320
Philadelphia, PA 19107-4701
Guide for Projects, page 27
CultureTrust Greater Philadelphia


At-a-glance Information and deadlines

COST ALLOCATIONS FOR SHARED RESOURCES

Included in 12% of revenue allocation:

Fiduciary Oversight by a Board of Trustees Included
Initial Project Assessment & Planning Included
Project & Financial Management Included
Procurement, Contracting, & Contract Management Included
Bookkeeping, Accounting, & Compliance (first 100 revenue and expense transactions per Project) Included
Bill Paying, Payroll Management/Processing, & Human Resources Management Included
Receiving Revenue & Donor/Funder Reporting Included
Basic Insurances & Insurance Administration (General Liability/Directors & Officers Insurances) Included

Required, with additional cost allocations (above 12% base), all Projects:

CultureWorks Coworking Membership $40/mo. - $350/mo.
Workers Compensation Insurance Varies per Project

Required, with additional cost allocations (above 12% base), if applicable:

Every 100 transactions above the first 100 transactions over the life of the Project up to max of 13% 1% added to base/100
Projects with >50% of revenues from Pew Center for Arts & Heritage or government (other than PCF) 1% added to base
Sales tax on goods sold (not including admissions or services) 8% of sales
Employer-Employee taxes ~11% of base wages

Optional for additional cost allocations:
Special Insurances (health, professional liability, real property, tenant insurance, etc.) Cost per policy
Retirement Investment Cost per match
CultureWorks Fellows $15/hour
Other Consulting/Management Services Various rates
Rush order for cutting checks outside of normal accounts payable cycle $50/check
Rush order for processing payroll outside of normal payroll cycle $80/processing run
Special payment transactions (e.g., money orders, certified checks, foreign transfers, etc.) $40 - $80/transaction
Returned check fees (for contributions made by check) Varies per transaction
Brokerage fees for receiving gifts of securities (stocks, bonds, etc.) Varies per transaction



KEY OPERATING DATES & DEADLINES

Financial management schedule:
Monthly Project Management Meeting/Check-in Once per month, per 1:1 schedule
Accounts payable processed (checks available in 2 business days) 1
st
and 15
th
(or next business)
Payroll processed (checks available in 2 business days) 5
th
(or next business)
All Project accounts reconciled and previous months reports available 15
th
(or next business)
Payroll reports issued with two-month payroll allowance forecasts 15
th
(or next business)
Administrative cost allocations booked for previous months activity 1
st
(or next business)
Workers compensation insurance allocations booked for previous months activity 1
st
(or next business)
General liability insurance costs estimated and allocated (lump sum) Once per year, per policy cycle

Important deadlines:
Request and reconciliation forms due for accounts payable processing 10am on 1
st
and 15
th
(or next business)
Payroll reporting forms (1099 & W2) due for payroll processing 10am on 1
st
(or next business)

Guide for Projects, page 28
CultureTrust Greater Philadelphia


6. Managing my fundraising, marketing, and public image


Ways you can receive charitable contributions

CultureTrust was formed in 2013 and is in its first fiscal year (ending June 30) of operations, so its first
full year of operations is Fiscal Year 2014 (July 1, 2013 June 30, 2014). During this formative time,
CultureTrust is being fiscally stewarded by CultureWorks Greater Philadelphia, which was formed in
2010, has three years of financial and program history, and has received its 501(c)(3) tax-exempt status
from the Internal Revenue Service. So, depending on funder requirements, there are two options for
structuring charitable transactions for your Project:
Option 2: Indirect Grants & Contributions through CultureWorks

If a grantmaker or donor requires submission of an IRS tax letter, a certificate from the Bureau
of Charitable Organizations (BCO), and/or more than one year of programming and financial
history, you will need to run the grant or contribution through CultureWorks. You would make
the following representations on application forms and in solicitation materials:

In any place an applicant name is needed:
CultureWorks Greater Philadelphia

Checks, grant agreements, and other legal or banking documents are made out to:
CultureWorks Greater Philadelphia (Memo: <<PROJECT NAME>>)

The Federal Employment Identification Number (FEIN) for CultureWorks is: 90-0619374

The Dun & Bradstreet Number (DUNS) for CultureWorks is: 04-407-9837

Date of incorporation is: July 1, 2010 Entity type: nonprofit corporation (or corporation)

Date of tax exemption is: May 16, 2012 Exemption type: 501(c)(3)


Option 1: Direct Grants & Contributions to CultureTrust

You may have donors and funders make fully tax-deductible contributions directly to
CultureTrust Greater Philadelphia, BUT you must also disclose to those funders that the
federal tax-exempt status of CultureTrust is pending. Most individual donors and some
institutional funders should be fine with this status, and you would make the following
representations on application forms and in solicitation materials:

In any place an applicant name is needed:
<<PROJECT NAME>> a program of CultureTrust Greater Philadelphia

Checks, grant agreements, and other legal or banking documents are made out to:
<<PROJECT NAME>> of CultureTrust Greater Philadelphia

The Federal Employment Identification Number (FEIN) for CultureTrust is: 46-3109411

The Dun & Bradstreet Number (DUNS) for CultureTrust is: XXXXXXXX

Date of incorporation is: July 1, 2013 Entity type: charitable trust (select other if not listed)

Date of tax exemption is: pending Exemption type: 501(c)(3) (status pending)


Guide for Projects, page 29
CultureTrust Greater Philadelphia







ALL Earned Revenues Go Directly to CultureTrust

All earned revenues, including contracts, admissions, sponsors, fees, merchandise, and other
such transactions should go directly to CultureTrust:

Wherever a contractor or payee name is needed:
<<PROJECT NAME>> a program of CultureTrust Greater Philadelphia

Checks and other legal or banking documents are made out to:
<<PROJECT NAME>> of CultureTrust Greater Philadelphia

The Federal Employment Identification Number (FEIN) for CultureTrust is: 46-3109411

Date of incorporation is: July 1, 2013 Entity type: charitable trust (select other if not listed)

Date of tax exemption is: pending Exemption type: 501(c)(3) (status pending)


For the Purpose of ALL Applications & Solicitations

The business address for all mail is:

<<PROJECT NAME of CultureTrust Greater Philadelphia>>
c/o CultureWorks Greater Philadelphia
The Philadelphia Building
1315 Walnut Street, Suite 320
Philadelphia, PA 19107-4701 | USA

Executive Director/Chief Executive Contact Information:
Thaddeus Squire, Managing Director & Trust Executive
T: 267 597 3803 | C: 215 760 1634 | F: 267 597 3811 | [email protected]

Project/Program Director Contact Information:
<<PROJECT DIRECTOR NAME>>, Project Director
T: her telephone | C: her cell | F: 267 597 3811 | her e-mail address

Website/URL: http://www.culturetrustphila.org AND/OR http://www.<<PROJECT_URL>>.org

Guide for Projects, page 30
CultureTrust Greater Philadelphia


Required charitable solicitation disclosure

You must include the following charitable disclosure language on any solicitation letters, fundraising
brochures, web pages, e-mails, pledge cards, business reply envelopes, and any other documents
(electronic or hard copy) where contributions are being directly solicited.

For direct grants and contributions to CultureTrust:

<<PROJECT NAME>> is a program of CultureTrust Greater Philadelphia, a charitable trust
declared in the Commonwealth of Pennsylvania. The federal tax-exempt status of
CultureTrust Greater Philadelphia is currently pending. For financial and other information on
CultureTrust, please contact the Trust Administrator, CultureWorks Greater Philadelphia at
267-597-3803 or [email protected].

For indirect grants and contributions through CultureWorks:

<<PROJECT NAME>> is a program of CultureTrust Greater Philadelphia, which operates under
the fiscal stewardship of CultureWorks Greater Philadelphia. A copy of the official tax-exempt
501(c)(3) registration and financial information for CultureWorks Greater Philadelphia may be
obtained from the Pennsylvania Department of State by calling toll free, within Pennsylvania,
1-800-732-0999. Registration does not imply endorsement.


Approval of proposal and solicitation materials

All grant proposals, reports, corporate sponsorship proposals, fundraising campaign and individual
solicitation materials must be reviewed and approved by CultureWorks before being submitted. We do
not need to review every attachment, just the principal content documents, which are as follows:

For foundation and government grants and corporate sponsorship proposals:
Letter of Intent (LOIs)
Application Cover Sheet and/or Cover Letter (if applicable)
Main Application/Proposal Narrative Text(s)
Project/Proposal Application Budget and Benefit Levels (if corporate sponsorship)
Grant Report Narrative/Budget & Report Attachments (both interim and final)

For individual solicitations, giving campaigns, fundraising events, and crowd funding:
Solicitation Letter (one example if a mail merge/bulk mailing)
Giving Brochure or Packet (if one is being used)
Gift Reply Envelope and/or Pledge Card/Form (if one is being used)
Fundraising Event Invitation (and possibly other materials)
Main Narrative Text & Benefit Levels (for crowd funding)

Review and approval process and timeline

We ask that you allow CultureWorks two business days to review any materials submitted, which
means that you need to send your materials to the Project Manager by 10:00am at least two full
business days prior to a grant deadline or mailing/posting date. We will return your materials to you
no later than 10:00am three days later (which is actually two full days of review). Expedited review
(less than two business days) of materials carries a fee of $50 per proposal, solicitation, event, or
campaign (including all relevant documents). We cannot guarantee that expedited review will be
possible in all cases, and will assess availability on a case-by-case basis.

Guide for Projects, page 31
CultureTrust Greater Philadelphia


When calculating your deadline, you must get us things two business days PRIOR to the date of the
deadline. The date of the deadline does not count as one business day. For instance, if your
grant deadline is 5:00pm on Friday, October 15, you must have your materials to the Project Director
for review by 10:00am on Wednesday, October 13. If you miss the main deadline, and expedited
review is not possible, you will not be permitted to submit your grant (if it is a hard deadline).

What do we do when we review your materials

We check for any errors in data preparation or representation of your Projects relationship with
CultureTrust. We also may make some recommendations about how your proposal may be
strengthened. If extensive revisions are necessary (in our opinion), we may recommend that you seek
additional support through a grant or development writer in our network.

Managing the risks of matching fund requirements and donor benefits

We also check to see if what you are pledging/promising in the grant might represent a risk for the
Project, if the grant or donation were to be awarded. The increasing focus on grant/gift matching in
the funding community can lead to Projects over-promising in budget size and deliverables. Gift
matching is where a funder requires (or encourages) a one-to-one (or greater) match for their support
to be raised by the Project from other sources. Calibrating and developing the worst-case strategy for a
grant where matching is required can be a tricky business. What happens if you get the grant but cant
make the match? We will help you troubleshoot and manage the risks involved in this situation.
CultureWorks has the right to prohibit a grant submission, campaign, or fundraising event from
happening if we feel that it is severely sub-par in planning and preparation, or if we feel the
proposal, campaign, or event may place the Project in financial jeopardy.


Tax deductibility

Tax deductibility for the donor only applies to charitable contributionsmoney that someone
contributes to your Project without any goods or service changing hands. There are two basic kinds of
revenues for any charitable Project:

Earned Revenues are cash funds your receive in exchange for delivering goods, services, or
experiences to buyers, customers, audiences, clients, etc. There is a clear exchange of benefit
at the core of earned revenues.

Contributed Revenues are cash funds you receive from donors or funders (grants and
contributions from foundations or government agencies) where there is not an exchange of
benefits. These revenues are sometimes called unearned revenues for this reason.

There are several common fundraising cases in which contributed and earned revenues are blended
they are comingled in one transaction. In these cases, you must be mindful of what part of the
contribution is tax-deductible and what part is not. These cases are:

Membership, Crowd Funding, & Corporate Sponsorship Campaigns: All three of these
fundraising models usually entail perks or benefits corresponding to giving levels. At each
level, there is a set of benefits the Project offers the donor or funder. These may be free
tickets, products, swag, free services, advertising opportunities, or other tangible items with
cash values we can determine (or estimate). The total value of the benefit package (whether
that is directly paid for by the Project or made up of contributed goods/services) should be less
than the value of the cash contribution required for the given level, so that the contribution
nets positive and the Project generates some net revenue.

Guide for Projects, page 32
CultureTrust Greater Philadelphia


In these cases, only the net amount above the value of the goods or services is tax-deductible,
the cash value of the goods or services are not deductible. For instance, for a $500
membership or sponsorship, the member or sponsor gets $150 worth of goods and services as a
benefit. Therefore, only $350 of the contribution is tax-deductible. Acknowledgement letters
and gift receipts from CultureTrust will reflect this saying, Thank you for your contribution of
$500, of which $350 is tax deductible. Goods and services in the amount of $150 were received
by the donor.

Fundraising (Benefit) Events: Fundraising events operate similarly, but often have a bit more
complexity to them, or they present challenges in calculating the cash value of the benefits to
attendees. The entertainments or amenities offered to attendees of the event do carry a value
that should be factored into the tax deductibility of an event ticket price, if the event is
ticketed. (Not all of the value of the ticket may be deducted.)

o Ticketing: An estimated value per person should be calculated for the food, beverages
entertainment, gift bags, or other amenities offered to guests as part of their ticket.
This value should be deducted from the value of their ticket to determine the true tax
deductibility of their ticket. For instance, out of a $100 ticket, you might calculate
that $50 is tax deductible.

o Auctions (Live and Silent): For auction items (whether purchased by the charity or
contributed in-kind), the same logic applies. The true tax deductibility for whomever
wins the auction for the item is what they bided minus the fair market value of the
item. If they bided under the reserve amount (which is usually the fair market
value), then it is possible that none of what they paid is tax deductible, even if the
charity nets cash because the item was contributed in-kind. CultureTrust will,
however, issue an in-kind gift receipt to donors for any contributed goods or services
used in an auction.

o Raffles: There are two raffle models common in fundraising: (a) raffles for goods or
services in which people buy chances at winning a good or service (where the good or
service can be bought by the charity or contributed in-kind) and the cash proceeds are
retained by the charity, and (b) raffles in which the pot is cash from raffle ticket
sales and the ticket buyers share in the cash winnings with the charity. The revenue
split for these is usually 50% to the winning ticket holder and 50% to the charity, which
has led to the popular shorthand term 50/50 for these raffles. (When people say
theyre doing a 50/50, they are referring to this type of raffle.) 50/50s used to
regulated by Pennsylvania Gaming Control Board, but recently legislation has made
them legal for charities to conduct without a license, provided they are not used as a
means of profit-making for any for-profit entity. CultureTrust will not issue tax-
deductible receipts for funds paid by an individual for a raffle ticket, since buying a
raffle ticket is not a charitable transaction. CultureTrust will, however, issue an in-kind
gift receipt to donors for any contributed goods or services used in a raffle.

o Casino Theme Events: Among the many thematic approaches used in fundraising,
casino nights remain popular. These are not real casino or gambling operations, as
guests are not obligated to pay to play, nor is real money used in wagering. As a result
these are perfectly legal and do not require a licensed operator. They are classified as
entertainment and not gambling. There are production companies that specialize in
providing the staff and gaming devices for a casino-themes events. The value of this
entertainment might be factored by CultureTrust into the overall value of the event
relative to the ticket price for attendees, if there is one.

o Sponsors: Sponsors for fundraising events work just like corporate sponsors for cultural
presentations (exhibits, concerts, etc.). See the bullet above about corporate
sponsorship campaigns.

Guide for Projects, page 33
CultureTrust Greater Philadelphia


Applying for a grant

Grants are cash contributions from corporations, foundations, or government agencies that usually run
according to a regular application process. Funders usually employ staff (grant officers) to administer
the application process, and sometimes officers are responsible for making final funding decisions. Most
prevalent today is a division of powers in which the grant officers are administrators of the overall
process but do not make final decisions. A common grantmaking process looks like this:

1. Letter of Intent (LOI): Grant officers work with applicants to address questions and manage
the intake process, which usually (but not always) begins with a Letter of Intent (LOI). This is a
short summary of your proposal (often following a specific format) that the funder uses to see
if its worth reviewing a full proposal. LOIs were created to save funders and applicants labor
it takes to put together a full proposal if there really is no match at all with a funders
priorities. LOIs are sometimes reviewed by staff or a peer panel of experts, or both.

2. Full Proposal Staff or Panel Review: Increasingly common today (as a means of
democratizing grantmaking and ensuring proper expertise) funders assemble ad hoc (usually
volunteer) peer or other expert review committees to review proposal and make funding
recommendations. Some funders keep this review function entirely among staff. At the end, a
set of proposals are recommended for funding.

3. Full Proposal - Board Review: The staff then prepares the finalist proposals for approval by
the foundation or agencys board of directors, which is an essential part of funding. In rare
cases, individual foundation staff or board members have full authority to approve grants, but
this is more the exception than the rule. This is sometimes called discretionary grantmaking,
and usually entails smaller sums of money and lower risk. Some funders maintain discretionary
funding accountpools of money for emergencies or out of which staff may make smaller
grants.

4. Grant Award Agreement & Reporting Requirements: As funding has become more formalized,
its rare that you simply get the check for the full grant with the letter notifying you of the
funding decision. Usually, you will receive an Award Letter, which constituted a legal pledge
from the funder to give you the funds. Some funders will either fund or not fund your full
request; others may adjust your request (most down) at their discretion. Your Award Letter
will specify the amount of your final grant. This is often accompanied by a Grant Award
Agreement, a legal document that outlines when pledge payments will be made, reporting
requirements, and other legal restrictions and terms of the grant including, most importantly,
restrictions on how the funding may be used.

There are two kinds of deadline cycles for grantmakers:

Rolling Applications are grants that have no set deadline. Usually such funders accept
proposals at any time, review them, and you enter the above cycle on a rolling basis. There
are also funders who have little to know formal processusually more family or individual-
controlled foundationswhere funding deadlines become rolling by default.

Deadline Applications are those that follow a specific submission deadline for both LOIs and
applications. Deadline-based funders are usually following a quarterly, semi-annual, or annual
grantkmaking process that corresponds to meetings of their board or directors. In all of these
cases, be sure and double check the precise nature of the deadline, since there are three
kinds: (a) postmark deadlines must be postmarked by a specific date and time (get proof of
mailing!), (b) in-hand deadlines (rare these days) where materials need to be physically
received by the grantmaker by a certain date and time, and (c) electronic deadlines, meaning
you have to submit all of your information via an online form or by e-mail by a certain date
and time.
Guide for Projects, page 34
CultureTrust Greater Philadelphia


The grants application and management process with CultureTrust:

1. Do your research: We will keep an ongoing deadline chart for cultural sector grantmakers
at culturetrustphila.org. You can learn about grant opportunities there, as well as any
special postings or information we want to share about key grantmakers in our community.

We welcome corrections and additions to this chart from Project Directors and the greater
community at any time. Letting your peers know about upcoming deadlines does not
diminish your chances of getting a grant. We can all benefit more from shared knowledge.

2. Check for eligibility, mission-match, and troubleshoot barriers: Check to make sure your
Project and CultureTrust (or CultureWorks, if you are applying indirectly) are eligible for
funding and that your Project is a good match to a funders priorities. Always read
carefully what they do not fund.

About the fiscal sponsorship barrier: Even though we argue that working under
CultureTrust is not fiscal sponsorship, there may remain barriers with certain funders. We
are working actively to advocate to and educate the funding community about the virtues
of our approach. Were often working on a case-by-case basis, so the more lead time we
have to reach out to a potentially resistant funder, the better. We still encounter barriers
of two kinds:

Policies: Some funders are simply philosophically opposed to the kind of structure
that CultureTrust may seem to be, and our approach is to meet with them,
present our arguments, and convince the right decision makers to the contrary.
This is often a barrier that can be overcome, based on the unique nature of the
direct project relationship that CultureTrust offers.

Systems: This can present greater challenges. Many funders build their online
systems (and hard copy review policies) to only accept one application per Federal
Employment Identification Number (FEIN), not recognizing the simple fact that
multiple Projects can very well operate under one FEIN. They build their systems
with the assumption that there can only be one grant per FEIN at any given time.
This can be a difficult barrier to overcome, but more and more funders are
changing their systems to reflect structures such as CultureTrust, so theres hope.
But we need to work together to advocate to the funding community to change
both their policies and corresponding systems.

3. Let us know your intentions: Contact the Project Manager and let us know that you intend
to apply for a grant, just so that we have a heads up. We can help with many of these
preliminary processes, as we are familiar with many grantmakers, locally and nationally.
And as mentioned above, if there seem to be barriers, we are interested in helping you
work through those as best we can.

4. Set up an account: While most grantmakers today have moved their grants management
process entirely online, with LOIs and applications (including attachments) all submitted
electronically, there are still some funders that require hard documents to be submitted
(or some ask for both). For hard copy applications, no account set up is needed. For online
applications, CultureWorks will need to help you set up a grants account. We will set up
the online account with the funder for your grant, and issue to you a standard user name
and password based on this template (all lower case), wherever possible:

User Name: Project Directors E-mail Address
Password: Project Director First Name + Last Four Digits of Project Directors SSN

Guide for Projects, page 35
CultureTrust Greater Philadelphia


5. Fill out the basic information: When filling out the basic informational sections on the
grant Letter of Intent (LOI) or application, please refer to the information boxes earlier in
this section for guidance and essential data points. There will be different information
depending on whether you are applying directly as CultureTrust or indirectly through
CultureWorks, depending on the eligibility requirements of the funder. If you have any
questions, please contact the Project Director.

Most grants have a mission and history section, which needs to be handled in a blended
way. As part of the Toolkit available online at culturetrustphila.org, you can access various
lengths of program histories for CultureTrust, which need to be integrated with your
Projects own history as one history narrative. Concerning mission statements, you should
follow this model:

CultureTrust Greater Philadelphia fosters sustainability and impact for creative and
preservation practices through providing a home and affordable shared management
resources for arts and heritage programs of diverse disciplines and cultural traditions.

<<PROJECT NAME>> as a program of CultureTrust, <<supports/fosters/educatesPROJECT
MISSION STATEMENT>>

6. Draft the narrative(s) and budget(s) and secure CultureWorks approval: You will be
responsible for generating the grant narratives (whatever are required) and Project
budgets for your proposal. These must be approved by CultureWorks, per the guidelines
present earlier in this section.

7. Assemble attachments: Essential to any grant is a set of attachments. Some are standard
usually those relating to the organizations corporate management and standingand there
are often Project-related attachments. You are responsible for assembling all of the
attachments, in particular Project-related materials. The standard institutional
attachments for CultureTrust and CultureWorks are available in the Toolkit section at
culturetrustphila.org. You will need to append your staff and board/committee lists to the
management staff lists provided by CultureTrust. Attachments included in the Toolkit are:

Board and Staff Lists
IRS Tax Letter
IRS Form 990s (most recent two fiscal years)
Pennsylvania Cultural Data Project Reports (PACDP)
Financial Statements (most recent two fiscal years)
Bureau of Charitable Organizations (BCO) Certificate
General Operating Budget (current fiscal year and next fiscal year)

8. Submit your proposal: It is the responsibility of the Project Director to submit the grant in
the manner required by the funder and by the deadline. Funders will not under any
circumstance offer extensions or exceptions to deadlines.

9. Communicate award notifications and grant management: Since you will be listing
CultureTrust as the address for your application, notice will likely be sent to CultureWorks,
or you will receive an e-mail notification if you include your contact on the grant
application form. Either way, you must inform the Project Manager of any grant award (or
decline) notices. Likewise, we will notify you of any correspondence from a grantmaker.

Once a grant has been awarded, you are principally responsible for managing your grant.
CultureWorks will support your work on this side through advice, the approval processes
outlined earlier in this section, and through providing financial reports. You take the lead,
but we are managing your grant together.
Guide for Projects, page 36
CultureTrust Greater Philadelphia


Asking for donations from individuals

Asking for contributions from individuals is often the best way to bring in charitable funds for a new
Project. Overall, individuals make up more than 75% of all giving to the charitable sector in the United
Statesfar more than foundations and government contribute. Also, most individuals will not have the
policy or systems barriers that institutional funders have (described above). Individuals are motivated
to give primarily because they like or believe in your work, not because they need a tax break. And the
most reliable and predictable revenue for Projects is individual giving. There are several approaches to
developing individual donors.

Giving Campaigns (E-mail & Direct Mail): These are the most basic approaches to individual
fundraising and are increasingly done entirely online via bulk e-mail, though direct mail still is
statistically competitive as an approach to direct solicitation. Generally these require a good
basic set of mailing/e-mail lists, a clear and simple pitch about your work, and a simple reply
donation method (sending in pledges/gifts or donating online). Many Project use traditional
giving levelssystems of tiered giving that encourage (often through the addition of donor
benefits) higher or specific levels of giving.

Giving Circles: Giving circles are growing in popularity. They are generally groups of donors
assembled around a common interest or affinity who pledge a fixed amount of support each
year over a series of years. Instead of ratcheting people up a giving level system ($100 one
year, then asking for $250 the next), giving circles allow people to fix their giving, but make
pledges over time to a Project. This is more attractive to more middle-income donors who may
not be wealthy, but who can contribute meaningful amounts each year. $500 to $1,000 per
year are popular ranges for individuals in giving circles. Think about, if you can get 10 people
to pledge $1,000 per year for two years thats $20,000 in locked in contributed revenue!

Membership: Membership takes many forms, from very informal concepts such as, We
consider all of our donors members, to forms in which giving levels are associated with
specific benefits and perks. Membership in the latter case if often a blended financial
relationship with only a portion of the members donation tax deductible.

Planned Giving: Planned giving describes a range of rather exotic giving instruments from
pooled income gifts, to bequests and charitable gift annuities that are usually made by people
toward the end of their lives or after retirement age. This kind of giving requires specialized
tax advice and legal counsel. At present, CultureTrust does not offer a planned giving program,
but if the opportunity for a bequest or other planned giving-type contribution should arise, we
can most likely accommodate the needs of the transaction through professionals in our
network. We have not developed this program, since the core user group for CultureTrust are
running more limited-term Projects. Planned giving is usually the domain of older organizations
with clear intention to be around not just for years, but for decades to come.

Major Gifts: This level of giving has no fixed definitions. What is a major gift for one Project,
may not be for another. Generally speaking, CultureTrust is considering any single gift over
$500 a major gift. This is also the threshold above which we generate our own
acknowledgement letter. Any gifts below this level may be acknowledged by the Project
Director, or CultureWorks will generate a receipt if requested by the donor. Major giving is not
something that happens passivelythrough a direct mail solicitation or e-mail blast. It requires
active and long-term cultivationthe process of developing a close relationship with a donor,
learning about their interests, and then transforming those interests into financial support for
your work. Sometimes you can prospect major donors, and initiate a relationship through
inviting them to programs, lunches, or other occasions so that they can learn about your
Project. Some may come to your work through other channels. CultureWorks can offer advice
on developing and managing these types or relationships and when/how contributions may be
solicited most effectively.
Guide for Projects, page 37
CultureTrust Greater Philadelphia


Seeking corporate sponsorship and membership

Corporate sponsorship is largely an earned revenue relationship, in which a for-profit corporation (or
other entity) makes a contribution to a nonprofit in exchange for advertising, promotions, perks for
their employees, and other benefits that have a determinable cash value. As discussed earlier, these
are usually blended transactions, in which some of the contribution may be tax deductiblewhatever
is left over when the fair market value of the goods and services received by the corporate for their
contribution is deducted.

Valuing your property: The first step in creating a sponsorship campaign or appeal is to value your
property, which is the industry lingo to figuring out the cash value of what you can offer a corporation
in exchange for their involvement in your Project. This can include the fair market value of the
advertising you might offerhow many impressions of the corporations logo might you be able to
offer on e-mails, direct mail pieces, radio spots, print ads, etc.? This could also include the value of VIP
events for sponsors, point of purchase advertising, perks for corporate leaders and staff, etc. Once you
have all of what you can offer valued and listed, you can think about setting goals and sponsorship
levels. Most of the things you should offer are items or advertising that you plan on doing anyway, but
that the sponsor can piggyback onto. You dont want to go out and spend a lot of money just for
sponsor benefits, unless they also will benefit your project, such as additional advertising.

Setting goals and levels: Once you have a sense of how much you can offer, you set a sponsorship
levelsprices and the benefits that go with themand set overall goals for how much you think you can
raise from sponsors. There are no hard and fast principles about where to set levels, but as a general
rule of thumb you want your levels to exceed the values of the benefits at each step.

Picking the right sponsor prospects and co-branding: You need to be mindful of the kinds of sponsors
that you choose to associate with your Project. There needs to be aligned goals and missions at some
level for a sponsorship deal (which is the industry term) to work. Both the sponsor and the Project
need to benefit. This may result from sponsors reaching new audiences for which their products or
services are relevant. It may mean higher level networking for the sponsor, facilitated by their
involvement in the Project. There are no standard models. Start by selecting prospects based on
mission and market match or sympathy, then start you conversation with the sponsor (usually through
their external affairs or marketing department) and learn more about their needs and how you can
tailor sponsorship benefits to them. Most large corporations have both a marketing budget and a
philanthropy set-aside or foundation, so you may be able to do a blended deal with funds coming
from both pots of money.

Creating Sponsorship Agreements and managing your sponsors: The last step in any deal is to
create a clear Sponsorship Agreement in which the terms, costs, benefits and other details of the deal
are laid out. These look like service contractswere paying you $X and you are doing Y for us. It is
important to manage closely to this Agreement, and CultureWorks can help with putting the Agreement
together and administer its terms.

Required Sponsorship, Membership, & Crowd Funding Form

If you plan to seek corporate sponsorship or build a membership program, we ask that you submit a
Sponsorship & Membership Form, which includes some key facts about your campaign or event and
outlines the membership/sponsorship levels, and provides values for the benefits (perks) for each
level, as well as the desired buy-in cost for each level. This is so we can help trouble-shoot
problems and help you maximize the value of your campaign, as well as have the financial
estimating data in one place for our accountants and bookkeepers, so we can help you manager
your relationships with sponsors. Forms are available in the Toolkit at culturetrustphila.org.



Guide for Projects, page 38
CultureTrust Greater Philadelphia


Running benefit events and fundraisers

CultureTrust supports fundraising events of all kinds and can also provide access to additional support
through our network of fundraising professionals and vendors, depending on the kind of event youre
working on. While fundraising events come in all sizes and variations, there are a few common models
to consider:

The Friendraiser: Many people call these events fundraisers and then are frustrated when
they dont bring in any money. The problem (and disappointment) is only in a misalignment of
intentions and execution: people often confuse friendraisers with fundraisers, even though
both should contain elements of each other. It is a good practice to hold events that are less
about generating money and more about widening your circle and getting the word out about
your work. These are affectionately called friendraisers and they come in many forms, from
intimate home gatherings, to formal lunchtime presentations, to happy hour events and larger
bashes.

These can be worthwhile, but be sure and think about how much time and money they will cost
relative to the return in new relationships and awarenessespecially if there is no plan for
them to generate money. Sometimes people throw friendraisers with the revenue plan that
they will follow up with contributions after the event or ask for them at the event. This is a
viable strategy, but you need to have a real plan to follow up with solicitations after the event,
which entails a lot of work without guaranteed returns. As a rule, most people will not make
contributions on the spot at an event, so dont count on that. Rule of thumb: keep these kinds
of events simple and cheap and hedge your bets on contributions.

The Great Party: The best way to bring in money from events is to throw a great party, get all
of (or many of) the production needs contributed in-kind, and charge a ticket price so that you
can net some cash proceeds. As discussed above, the issue with friendraisers is that you can
throw a great event, and still not walk away with any funds. The best way to guarantee some
revenue is to create an event out of contributed resources (space, entertainment, food, drink,
etc.) that is valuable enough that people will want to pay for it. This is a good model for
Projects new to event fundraising, as it is often built around a lower ticket price, but higher
capacity for attendees (these are friends and family events), as opposed to relying on knowing
enough people with deep enough pockets to drive a higher ticket price event. You can add to
this approach such features as raffles, auctions, as well as seek corporate sponsors, though for
this model most corporate sponsorship is not cash, but in-kind product and service
contributions.

The Rubber Chicken: The rubber chicken eventaffectionately named for the frequency
of overcooked chicken on such event menusis the classical formal fundraiser, usually entailing
high production values (sometimes with the exception of the food!), including location (a hotel
or other catering location), extensive catering, a higher ticket price ($100s and up), and
entertainment. These events are usually the domain of organizations and Projects with a fair
Required Benefit Event Form

For fundraising events, we ask that you fill out an event form detailing the nature and elements of
the event. This is so we can help you manage the events financially and trouble shoot risks, as well
as advise on production elements and places where you might need special insurance or permits.
The form will also capture the key financial goals and attributes of the event, so we can accurately
account for them and help you with donor stewardship. Forms are available in the Toolkit at
culturetrustphila.org.



Guide for Projects, page 39
CultureTrust Greater Philadelphia


amount of fundraising history that have cultivated a group of donors capable of higher level
giving. They are largely committee drivena committee is formed for the purpose of driving
paying attendance and attendance is driven by the networks of the committee and whatever
relationships the organization brings. These are very labor- and cost-intensive events and
should only be undertaken by Projects that have the right volunteer leadership to undertake
such an event.

The Private Dinner: These are often a good way to start cultivating higher-level donors. You
need to start with someone with a good house for hosting parties and a decent rolodex of
people whom they are willing to invite to the dinner on your behalf. You agree on a size for the
event (usually something pretty intimate) and have the dinner, offer a presentation about your
work, and (in the best case) the host makes an appeal for support for your work. Sometimes
people give on the spot; usually these events require follow-up work.

Alcoholic Beverages & Fundraising Events

It is illegal to sell alcoholic beverages of any kind (wine, beer, liquor), even for a fundraiser without a
license in Pennsylvania. If you do wish to sell alcohol, the Commonwealth of Pennsylvania Liquor
Control Board does offer temporary licenses to various kinds of charities. There are application fees,
and it takes about a month to process applications. CultureTrust will support applications for these
licenses, but any costs will be allocated to your Project. More information is available HERE.

Otherwise, you can provide alcohol gratis as part of the general amenities of the event, like the food
and entertainment that may be included in an overall ticket price for your event. You are still
responsible for checking IDs or otherwise ensuring that liquor is not being served to under-aged
persons (under the age of 21 in Pennsylvania). CultureTrust does carry liquor liability coverage as part
of its General Liability policy, which is designed to cover fundraising events where liquor is being
offered.

Other Event-related Licenses

In addition to a Temporary Liquor License, CultureTrust will also support (as applicant) other kinds of
event and usage licenses that frequently arise in the course of cultural event production. Such common
licensing includes Temporary Certificates of Occupancy (TCOs) (for use of buildings without a
Certificate of Occupancy), Block Party Permits (for closing down streets), and various park use permits
(for spaces under the jurisdiction of Fairmount Park), among others. CultureWorks can help navigate
these processes with the City of Philadelphia Department of Licenses and Inspections (L&I), Fairmount
Park Commission, Streets Department, and others.


Guide for Projects, page 40
CultureTrust Greater Philadelphia


Crowd funding and online contributions

Crowd funding: Crowd funding is a new development on the charitable landscape, and most of it is
neither philanthropy (contributed revenue) nor private investment (equity), since most of the
transactions, such as those for Kickstarter and IndieGogo, are not going directly to a named, registered
charity. Some fiscal sponsors do have arrangements with crowd funding platforms, such as Fractured
Atlass relationship with IndieGogo, which can allow contributions to be tax deductible. (See the tax
deductibility discussion earlier in this Section.) CultureTrust, over the coming year, plans to develop
direct relationships such that funds contributed on their platforms may go directly into your Project
account at CultureTrust. But for the moment, there are two ways of working with crowd funders:

We open an account in your name on the funding platform and funds go directly to
CultureTrusts bank account, and need to be earmarked through the crowd funding platform
for your Project, so we can identify them when they arrive in our bank account. In this
instance, contributions to your Project may be tax deductible.

You open an account in your name and use your bank account, and simply cut us a check once
your campaign is over and we deposit it to your account. In this case, contributions to your
Project will not be tax deductible.

In both cases the fees that the crowd funder charges are not absorbed by CultureTrust. They are
separate and must be taken into account when youre choosing a crowd funding platform. The benefit
of nonprofit partnershipsand the reason that we are pursuing these with select crowd fundersis that
many of these companies will offer lower transaction fees to registered charities.

Online contributions: The culturetrustphila.org website maintains a basic online giving portal for all
Projects under CultureTrust. You can link directly to this page from e-blasts and your own website to
allow for ongoing online giving to your Project. All contributions are directly to CultureTrust.


Required Sponsorship, Membership, & Crowd Funding Form

Since crowd funding is structured similarly corporate sponsorship and membershipthere are levels
of contribution associated with specific benefits and perkswe ask that you fill out the same form,
detailing the levels of giving you are using for your campaign and the benefits youre offering, their
value and how they will be fulfilled. Forms are available in the Toolkit at culturetrustphila.org.



Guide for Projects, page 41
CultureTrust Greater Philadelphia


Receiving in-kind contributions

In-kind revenues (and expenses) are non-cash contributions of services and labor (time), materials,
technology, and other goods. Because in-kind contributions substitute for an expense (you would
otherwise have to pay for the services or goods), CultureTrust will account for any in-kind contributions
as both revenue and expense. They must balance each other out on both the income and expense side
of the Project.

CultureTrust will acknowledge all in-kind contributions through a letter describing the nature and
amount of the contributed goods or services, the Project to which they were given, and the date(s) of
contribution. CultureTrust will not provide or acknowledge to the contributor a cash value for in-kind
contributions. It is the responsibility of the contributor to provide to their accountant and the relevant
taxing authorities the value of their contributed goods or services, which may be accompanied by
CultureTrusts letter. CultureTrust may however, if desired by the Project Director, record a cash value
for the in-kind contribution in its bookkeeping for the Project.


Reporting, acknowledgements, credits, and record keeping

Reporting: It is the responsibility of the Project Director to create and deliver any reports required by
funders or donors. CultureWorks will support these efforts with proofing and review of draft reports,
advice on attachments and format, and by delivering financial reports to support your documentation.
This process, however, must be led by the Project Director.

Acknowledgements: CultureWorks will acknowledge all individual gifts of $500 or more with a standard
letter from CultureTrust. The Project Director will be issued a monthly report on all gifts and grants,
and it is up to the Project Director to write her own acknowledgements to complement those of
CultureTrust and/or write acknowledgements for gifts below $500. Ultimately, all funder relationships
are yours to develop and manage. CultureTrust will issue gift receipts for gifts of less than $500, if
requested by the donor.

Credits: It is the responsibility of the Project Director to make sure that their Project is complying with
all funder, donor, and sponsor credit requirements, per any grant or sponsorship agreements.

Record Keeping: We ask that aside from the approval processes described elsewhere in this Guide that
you send us a final copies of all grant LOIs and grant applications, whether hard copy and/or
electronic applications. We would prefer these materials to be sent to the Project Manager
electronically, as we are moving toward a fully online management system for CultureTrust overall.

The better you are in keeping your files current with the Project Manager, the better able we are to
help you manage your grants. These documents, along with the various forms described in this section
will help us support your fundraising needs.

In-kind Contribution Form

Since in-kind contributions dont arrive in the form of a check, we need to be able to record the
key elements of in-kind contributions. We ask that you fill out an in-kind contribution form, which
record the date, donor, and quantity/nature of the goods and/or services that were contributed.
This allows us to issue an acknowledgement of the contribution and account for it accurately in
your Projects financials. Forms are available in the Toolkit at culturetrustphila.org.



Guide for Projects, page 42
CultureTrust Greater Philadelphia


Your Project retains its brand and image identity

You and your Project identity remain the public face of your workfrom your name, website, and
printed materials, to how you talk about the Project and develop your creative, financial, and other
community relationships.

When it comes to the general public, CultureTrust remains entirely in the background, and has no
aspiration toward a true public identity. The relationship between CultureTrust and your Project is akin
to the powered by idea familiar from our online worldthe credit byline A program of CultureTrust
Greater Philadelphia and its logo appear a the bottom of the webpage in small print.

And CultureWorks administrative presence remains entirely in the background, unless you need to
clarify your management structure (which is provided by CultureWorks staff) to a donor, funder, or
other close stakeholders who may be interested in understanding those dynamics. Your relationship
with CultureTrust does become more important to foreground in your fundraising efforts, but even
there, your Project and its specific mission remain the most critical part of the funder relationship.

As you will see below, there are some disclosures and credits concerning your relationship with
CultureTrust required for specific circumstances, but the intention of CultureTrust is to remain largely
in the background, and there is no mandate to co-promote CultureTrust the way you might a creative
or other partner. If anything, the CultureTrust relationship behaves like that of a fundercredit where
it is due or adds clarity, but not as a co-promotional relationship.


How to talk about your participation in CultureTrust

Despite some of the potential complexity behind the scenes, the relationship between CultureTrust and
your Project is a simple one. Your Project is a program of CultureTrust and no different than the
relationship between a program of an independent nonprofit and the nonprofit itself. For instance, a
theatre company may have an education program and a training program. Both have distinct operating
needs, audiences, funders, and donors, yet they both live under one charitable organization.

If asked whether you are a nonprofit, you can say this

<<PROJECT NAME>> is a program of CultureTrust Greater Philadelphia, a charitable 501(c)(3)
organization supporting diverse cultural practices in the Philadelphia region.

If asked how your relationship with CultureTrust is different from fiscal sponsorship, you could say

We are not a fiscally sponsored project, we are a program of CultureTrust and work directly
under its management and administration. My colleagues and I are employees and contractors
of CultureTrust and the organization has complete management responsibility for our work.

When asked what the mission of CultureTrust is, here is the official mission

CultureTrust Greater Philadelphia fosters sustainability and impact for creative and
preservation practices through providing a home and affordable shared management resources
for arts and heritage programs of diverse disciplines and cultural traditions.

If you want to show your Projects mission relationship to CultureTrust, you might say this

CultureTrust Greater Philadelphia fosters sustainability and impact for creative and
preservation practices through providing a home and affordable shared management resources
for arts and heritage programs of diverse disciplines and cultural traditions.

Guide for Projects, page 43
CultureTrust Greater Philadelphia


<<PROJECT NAME>> as a program of CultureTrust, <<supports/fosters/educatesPROJECT
MISSION STATEMENT>>

If you are filling out a contract, application grant, or any other kind of application, you will write in
the applicant space

<<PROJECT NAME>> of [or a program of] CultureTrust Greater Philadelphia




Crediting policies and placements

Projects are required to represent their relationship to CultureTrust in some manner in all printed
information or marketing materials, websites, donor solicitations and acknowledgements, stagebills,
advertisements, press releases, and other public documents. See below for credit language.

Stagebills/Book-type Publications: Representation of affiliation in a stagebill, book- or leaflet-type
publication may occur anywhere in the front matter (cover, first several layouts), back cover, or where
funding and institutional credits (board/committee, donor, sponsor, staff, and partner lists) appear.

Press Releases: For press releases, affiliation representation may appear anywhere in the main body of
the release, but more likely in the boilerplate copy at the end of the release.

Advertising Materials: For posters, brochures, flyers, and event cards representation should likely
appear in a secondary position to the main identity of the Project or event (i.e., bottom gutter/corners
or sidebar), either on the front or the back (if double-sided), depending on design and overall layout.

Websites: For websites, affiliation representation may appear on the footer or sidebar of the website
(or header, if preferred by the Project). Affiliation may also appear, as appropriate in the about
content of the website with other institutional information (board/committee, donor, sponsor, staff,
and partner lists).

How to talk to prospective donors and funders

As CultureTrust is currently establishing itself as a charitable trust, it is working under the fiduciary
stewardship of CultureWorks Greater Philadelphia.

At the moment, CultureTrusts own 501(c)(3) application is pending with the Internal Revenue
Service, but CultureTrust is able to operate as a charitable entity. In this interim period, however,
CultureTrust is operating under fiduciary oversight from CultureWorks.

What does this mean?

! You may instruct donors and funders that they can make fully tax-deductible grants and
contributions directly to CultureTrust Greater Philadelphia, but that the federal tax-exempt
status of CultureTrust is pending.

! If a donor or funder requires submission of a tax letter or requires three or more years of
financial statements to be eligible to receive funding, the grant or donation must be in the name of
CultureWorks Greater Philadelphia, which will simply re-grant these funds to your Projects
account under CultureTrust. There are no additional contracts, cost allocations, or fees for this
arrangement. As we build up CultureTrusts Project profile and history, this is a necessary step to
ensure that our Projects maximize their fundraising opportunities.
Guide for Projects, page 44
CultureTrust Greater Philadelphia


Solicitation Letters/Materials & Donor Brochures: It is required by law that your affiliation with
CultureTrust appear with charitable disclosure language below on any webpage or print material on
which text appears soliciting charitable contributions. This disclosure may or may not appear with the
CultureTrust graphic identity. (See Section 7 for specific disclosure language.)


Graphic identity style guide and credit language

It is preferred, but not required that the CultureTrust logo appear with any credits. If you publish the
logo, it must be accompanied by text clarifying the relationship to your Project, which may appear in
the dispositions below. Explanatory text may not be placed to the left of the identity, and the identity
should never appear alone.

With explanatory text to the right of the identity:


<<PROJECT NAME>> is a program of
CultureTrust Greater Philadelphia




With explanatory text above the identity:


<<PROJECT NAME>>, a program of OR <<PROJECT NAME>> of








Identity files are available in .pdf, .jpg, and .tiff forms at: http://www.culturetrustphila.org

If you are acknowledging the relationship without the identity, here are some examples to follow:

Simple text credit (stand alone, or for use in prose text):

<<PROJECT NAME>>, a program of CultureTrust Greater Philadelphia []
OR
<<PROJECT NAME>> of CultureTrust Greater Philadelphia []
OR
<<PROJECT NAME>> is a program of CultureTrust Greater Philadelphia

Press release boilerplate:

<<PROJECT NAME>>, a program of CultureTrust Greater Philadelphia, <<PROJECT
MISSION/DESCRIPTION>>




Guide for Projects, page 45
CultureTrust Greater Philadelphia


Documentation

To help CultureWorks support the marketing and fundraising efforts for your Project and to document
the general work of CultureTrust we ask that the Project Director keep track of, collect, and deliver
copies of any of the following project documents (as applicable) to CultureWorks for promotional and
archival use only:

Photographs
Audio/video recordings
Press Releases
Programs/Stagebills
Advertising Materials (brochures, cards, flyers, posters)
Print Advertisements (newspaper, magazines)
Articles and press coverage
Public Reports
Any other documents or deliverables relevant to your Project


Guide for Projects, page 46
CultureTrust Greater Philadelphia


7. Financial and human resources management

The approval process

CultureWorks employs a three-part, internal approval process of all contracts and financial transactions
for Projects under CultureTrust. In general processing and final approval of all financial or contracting-
related requests will take a maximum of 2 to 3 business days. Depending on volume of requests and
staff workloads, it could take less time. Each requests follows this process:

1. You submit your forms and requests electronically to the Project Manager at CultureWorks.
The Project Manager reviews the request in the context of your approved Project budget
and description, and signs off on the transaction documentation.

2. The Project Manager hands off the request to the Finance Manager, who checks your
request against your fund balances and finances to ensure that it complies with our
financial management policies. The Finance Manager signs off and, if relevant, generates
checks or payment processing documentation.

3. Finally, your request, contract, and any accompanying checks or payment documents
(where applicable) are delivered to the Trust Executive for final signature and release.


Financial management forms

CultureTrust maintains forms for contracting, procurement of goods and services, and paying bills.
These forms are the chief ways in which you communicate with CultureTrust about your Project and its
needs, and how CultureWorks, as administrator, helps you manage your Projects finances. These forms
tell CultureWorks what you wish to purchase or contract and allows the staff to understand where/how
you wish to purchase the goods or contract personnel, when you need them, and whether you have the
funds to cover costs.

Purchase Order A form requesting purchase approval and actual purchase of goods or services
you wish to order (materials, supplies, and other goods or services from companies).

Contracting and Employment Request A form requesting approval to contract services (from
individuals or independent contractors), and to hire W2 employees for the Project.

Payment Request Form A form requesting approval and payment of specific contracted
services, purchases, and employees that are either waiting in your accounts payable to be paid,
or on long-term or phased contracts with multiple payments.

Payroll Reporting Form A form reporting actual hours worked for the last months pay period
that need to be processed for the current or next payroll (for both W2 and 1099MISC personnel,
if personnel are being paid on an hourly basis).

Reimbursement Request Form If a Project Director (or other Project team member) pays out-
of-pocket for an approved Project expense, they may submit a Reimbursement Request for
approval and reimbursement.

Sales & Contributions Form A form detailing the sales, donations, complimentary admissions,
and in-kind contributions related to any discrete live events or ongoing merchandizing or sales
(live or online) undertaken as part of a Project.


Guide for Projects, page 47
CultureTrust Greater Philadelphia


Contract templates

CultureTrust maintains and has available for use by all Projects the following kinds of contracts.
Contracts and forms issued by vendors and suppliers may also be accepted, but where there is a choice
in which party issues the contract or where there is a need for a contract of any kind (the other party
does not have one), the following are available:

General Independent Contractor Agreement
General Employment Agreement
Licensing Agreement
Release Agreement (for journalists, videographers, and photographers)
Standard Non-disclosure Agreement
Commissioning Agreement for Creative Works
Partnership or Co-producing Agreement
Standard Union Contract Templates (IATSE, AGMA, AFM, AEA, SAG)

Selecting and approving vendors and hiring personnel

The Project Director is chiefly responsible for interviewing and selecting employees, as well as
researching and selecting vendors, contractors, and key service providers for the Project.

Beyond its general fiduciary role, CultureTrust and its administrator CultureWorks do not make
aesthetic, artistic, or key subject matter or staffing decisions. For these decisions, we rely heavily on
the Project Director to instruct CultureTrust as to the best staffing or vendor solutions. This means that
CultureTrust is not in the business of being a creative director or passing judgment on the Project from
a curatorial or aesthetic standpoint.

CultureTrust will only step in and influence staffing or vendor decisions if it feels that a specific
decision (or lack thereof) may lead to failure of the Project overall. In stewarding any Project, there is
great reliance on a true relationship of trust between CultureTrust and the Project Director.

A vendor is any company or entity with which you contract to purchase goods or services. In
this case CultureTrust is paying an entity (corporation, LLC, LP, L3C, sole proprietorship) with a
Federal Employer Identification Number (FEIN), which is a nine-digit number that usually
appears in the following form: NN - NNNNNNN.

A contractor is any person with whom you contract to perform a service. In this case
CultureTrust is paying a natural person with a Social Security Number (SSN), which is a nine-
digit number, usually appearing in this form: NNN NN NNNN.

An employee is any person whom you pay to perform a job. As with contractors, CultureTrust
is paying a natural person with a Social Security Number (SSN), which appears as above.

How to tell and employee from a contractor

CONTRACTOR EMPLOYEE
You do not dictate when, where, and how work gets done. You dictate when, where, and how work gets done.
Does not have a title or position with your Project. Has a position and title with your Project.
There is not a workplace reporting relationship. There is a workplace reporting relationship.
You do not closely supervise the work of this person. You supervise closely the work of this person.
The person sets his/her own hours for when work is done. You set the hours and schedule for how work gets done.
The person submits a bill/invoice for work completed. The person is paid a wage or submits time sheets.
The person uses his/her own tools/materials to complete work. You supply the tools/materials for the person to complete work.
Is not required to attend regular meetings and work sessions. Is required to attend regular meetings and work sessions.
Is free to provide services to multiple clients at one time. Is restricted/prohibited from providing services to multiple clients.

Guide for Projects, page 48
CultureTrust Greater Philadelphia


Dispelling a few myths about contractors vs. employees

CultureTrust adheres to the general criteria above for distinguishing contractors from employees. Even
though there are often grey areas in the distinction between employee and contractor, we
encourage treating people (wherever appropriate) as W2 employees, because it makes the financial
and work relationship more transparent between the worker and the Project.

Because contractors are responsible for their own taxes, the true wage is often left unclear in the
initial transactionhow much can I really spend out this $500 contract, and how much do I need to set
aside for taxes? Contractors less familiar with (or good at) personal tax management find themselves
frequently saddled with high year-end tax bills related to 1099MISC income. This can be prevented
more easily by the W2 employee relationship, since the employer both shares in the tax liability and is
responsible for managing regular payment of employee/employer taxes. Moreover, we find that
individuals working in the cultural or creative sector are frequently employed as contractors when they
really should be employees.

We realize that much of the creative and cultural sector prefers to pay people as independent
contractors because they believe that this saves them money and administrative effort. It is true that
there is a difference in administrative work involved between managing payments to a 1099MISC (W9)
contractor versus a W2 employee, mostly related to the tax filings and payments required of employers
with W2 employees. There are, however, no savings in paying someone as a contractor versus an
employee. What usually happens is the contractor is simply paid less than they realizethey are losing
money in the dealthus, the illusion of savings. Most folks accepting an engagement for $500 (for
instance) dont think about what theyre really making after taxes, so they may end up unwittingly
accepting a lower (and sometimes unfair) wage. Whether intentional or not, employers can use the
contractor agreement to lower net compensation for a job. In a negotiation over compensation,
employers and employees should increase contractor wages (if compared to employee take-home pay)
to account for taxes, and base negotiations on clear representations of true wages, whether the
arrangement ends up as a contractor or employee.

The perception that contractors present less liability and commitment for an employer than an
employee is also false. In fact, since Pennsylvanias labor laws permit at will employment, you can
lay off or fire an employee at any time without cause, making it easier to manage long-term financial
commitments for a Project. For instance, if a Project runs out of funds, employees can simply be
temporarily laid off while the Project works to replenish revenue. CultureTrust ceases to accrue salary
liabilities, but is liable for state unemployment compensation for the employee. In contrast, a long-
term independent contractor commitment cannot simply be cancelled or suspended (unless through
special provisions written into the contract), and the contractor has grounds to take the Project to
court over unpaid fees and expenses. In sum, it is easier legally to turn an employee obligation on and
off than an independent contractor if the Project needs to accommodate intended (or unforeseen)
cash flow deficits or interruptions.

In working with CultureTrust, the administrative costs and work related to paying people as employees
are taken care of, making it easier to compensate people as W2 employees. Since employee liabilities
are easier and more transparent to manage over time (from month to month), CultureTrust prefers the
employer-employee relationship to that of a contractor, wherever this relationship is appropriate.

Vendor selection and engagement policies and procedures

References and reputation: While CultureTrust relies on the Project Director to choose
vendors for goods and services, it encourages Projects to research references and general
reputation for key vendors. CultureWorks may from time to time request references for
unfamiliar vendors, if it feels this is prudent.

Guide for Projects, page 49
CultureTrust Greater Philadelphia


Professional certifications: CultureTrust requires any professional service providers to have
current licenses and certifications. Such regulated professions include law, accounting,
financial advice, medicine, brokerage of any kind, and trades related to building (engineering,
construction, plumbing, and electrical). CultureWorks may from time to time request proof of
such licenses and certifications, if it feels this is prudent.

Bonding and insurance: Service providers should all carry insurance, and in some cases
bonding, depending on the services they provide. Project Directors are encouraged to inquire
about professional liability insurance and bonding for any services that could lead to physical
harm, damage to property, or physical, financial, or reputational damage owing to error or
negligence on behalf of the vendor. CultureWorks may from time to time request proof of such
insurances or bonding, if it feels this is prudent.

Employee and contractor hiring policies and procedures

Job descriptions and postings: Any significant Project jobs/tasks that are hired out to
contractors or employees will require a basic Job Description, approved by CultureWorks,
including roles/responsibilities, tasks, qualifications, time commitment, compensation, and
commitment to Equal Opportunity Employment. CultureWorks assists the Project Director with
this Job Description, which is included in the Contracting and Employment Request form. The
Project Director may post the approved description as she sees fit.

References and background checks: While CultureTrust relies on the Project Director to find
and select employees and contractors, it encourages Projects to check references and the
general reputation of contractors and employees prior to hiring. CultureWorks may from time
to time request references for unfamiliar vendors, if it feels this is prudent. Background checks
may be required prior to employment for any key contractors or employees:

o Who work regularly with audiences or the general public, clients, or customers
o Who work with children under the age of 18
o Who are full-time employees of the Project
o Who work independent of direct supervision of the Project Director

Offer letters and employment agreements: CultureWorks must approve all offer letters and
employment agreements and will assist the Project Director by providing templates for these
documents, as well as advise on best practices and matters of content and terms. CultureTrust
may choose to seek legal counsel on employment matters from time to time, as it sees fit.

Contractor/vendor Request for Proposals (RFPs): Depending on the size, scope, and nature
of the services or goods required for the Project, CultureWorks may recommend that a Project
issue a formal Request for Proposals (RFP) in order to compare bids and qualifications and
assist with selecting the best contractor or vendor. Formal RFPs must be approved by
CultureWorks, which can also assist the Project Director with designing and drafting the RFP.

Independent contractor agreements: All contractor agreements must be approved by
CultureWorks prior to signature. CultureTrust does permit contractors to issue their own
agreements. Alternatively, CultureTrust maintains a set of agreement templates adaptable to
any manner of contracted services.


Expense (payables) management policies

Note: All of CultureTrusts financial policies are based on cash on hand; pledged contributions or
contracted receivables may occasionally be accepted as receivables, at the sole discretion of
CultureTrust, depending on the creditworthiness of the source.
Guide for Projects, page 50
CultureTrust Greater Philadelphia



a. Payment Method: CultureTrust will make all payments by corporate check or online at the
discretion of CultureTrust and its administrator CultureWorks. Payments will not be issued in
cash/currency, and CultureTrust does not maintain petty cash accounts for Projects.
CultureTrust does not provide bank cards to Project Directors for covering COD or credit card
purchases. CultureWorks can make electronic or credit card purchases directly (via a Purchase
Order) for Projects.

Direct deposit of salary payments may be available for employees of CultureTrust for an
additional charge. Any special payment methods requested by the Project, such as money
orders, certified checks, Electronic Funds Transfers (EFTs) to foreign banks, currency
exchanges, or other means not mentioned in the above paragraph may carry additional
handling and bank charges that will be allocated to the Project.

b. Payment Schedule: CultureWorks, according to policies set by CultureTrust, adheres to a set
schedule of making payments, processing payroll, and reconciling all Project accounts:

o Employee & Hourly Contractor Payroll: Payroll for all W2 employees and hourly
contractors (1099MISC) is processed by the 5
th
business day of each month (excluding
national holidays) for the pay period beginning on the 1
st
of the previous month and
ending on the last day of the previous month. Payroll Reports are due from Project
Directors by 10am on the 1
st
of the month (or next business day). Any Payroll Reports
received after the deadline will be processed in the next payroll cycle or allocated an
$80 fee for late processing, if ordered by the Project Director.

o Purchase Orders, Contracting/Employment Requests, & Reimbursement Requests:
These requests are received and processed on an ongoing basis. CultureWorks requires
a minimum of 2 business days to process and approve any of these requests, which is
necessary to enter them into accounts payable and make payments, per the below
section on Accounts Payable.

o Accounts Payable: All general accounts payable (vendors, other contractors, etc.) are
processed and checks cut starting on the 1
st
of the month (or next business day) and
the 15
th
of the month (or next business day). This applies only to approved Purchase
Orders, Contracting/Employment Requests, and Reimbursement Requests, and other
essential payables, such as insurance premiums and tax payments. (See below.) All
Payment and Reimbursement Requests are due to CultureWorks in-hand or
electronically by 10am on the above days to be processed in the current cycle. Any
Request forms received after that time may be processed in the next cycle. Request
forms may be submitted at any time. If you require a check to be cut outside of this
schedule a rush fee of $50 per check will be allocated from your Projects account.

o Employer-Employee & Sales Taxes: These taxes are the only taxes not subject to
federal exemption for charities, therefore they are the responsibility of all Projects
under CultureTrust. Pennsylvania sales taxes (currently 8%) for all CultureTrust Projects
are paid quarterly, with each Project allocating its share of taxes on a quarterly basis.
Of course, this tax only applies if you are selling taxable goods. Taxable items include
material goods only (not tickets, admissions, or service fees). Employer-employee taxes
(Federal Income Tax, Unemployment Compensation, and others) are allocated monthly
in conjunction with payroll processing. All Projects of CultureTrust are exempt from
Federal Unemployment Tax Allocation (FUTA) through its federal tax exemption.

o Insurances: General Liability insurance is assessed and allocated once per year
(according to the term of CultureTrusts policy) for each Project. This cost is allocated
at the start of the insurance year for each Policy and must be allocated in full in a
Guide for Projects, page 51
CultureTrust Greater Philadelphia


lump sum, even though it is included in the base 12% administrative allocation for all
Projects. The amount of the lump sum is deducted from the first/next 12%
administrative allocation following the opening of a new subtrust account, or the
annual renewal date of the policy. Directors and Officers insurance, which also is
renewed each year by CultureTrust, is included in the 12% administrative allocation
and is not subject to a lump sum allocation.

The costs of any special insurances (health, professional liability, real property, etc.)
are allocated in full from the applicable Project at the time the premium is due, per
the terms of the insurer.

c. Purchase Orders and Contracting/Employment Requests: CultureTrust will not start accepting
any of the contracting, employment, or payment requests until 100% of the Contingency Budget
assumptions are fulfilled and in-kind resources secured, and 50% of the cash needs of the
Contingency Budget are received; OR, if an ongoing/longer-term Project, at least two months
of anticipated payroll and operating resources are in hand.

Any long-term, multi-payment, independent contractor agreement (1099MISC) or long-term,
multi-payment vendor contract must have allocated or designated cash in hand sufficient to
cover at least 75% of the contract value before CultureTrust will execute the contract and
begin payment.

d. Payment and Reimbursement Requests: CultureTrust will not approve payment requests for
Project payables in excess of the cash on hand for the Project subtrust account at the time a
request is made. Cash-on-Delivery (COD) or other Electronic Funds Transfer (EFT) transactions
may be submitted to CultureTrust via a Payment Request (assuming an approved Purchase
Order), or paid by the Project Leader and reimbursed through a Reimbursement Request.

e. Employee Payroll Management: All CultureTrust employees must be paid according to an
hourly rate equal to or greater than minimum wage (currently $7.25/hour), as determined by
the Project Director. Yearly salaries may be used in negotiating wages, but for CultureTrust
payroll purposes, a yearly salary will be converted into an hourly wage, based on a 52-week
work year and a 24-hour work week. CultureTrust employees may not work officially more than
24 hours per week. Projects that require employees to work more than 24 hours per week may
report those hours, but may not accrue an average hours per week of greater than 24
hours/week within a six-month period.

Payroll will be calculated based on actual hours worked for the previous month at the
established hourly wage for the employee. Within the first 15 business days of the month,
CultureWorks will issue a payroll report to the Project Director, including the estimated
maximum hours that the Project can permit its employees to work for the next two months. In
this way, each Project with payroll will be able to plan salaried worker time for a minimum of
two months out.

No employee of a Project will be permitted to work any more time than the Projects subtrust
can cover with cash on hand. If a Project is in danger of running out of money to pay its
employees, the employees will be notified at least one month in advance as to when they will
be laid off by CultureTrust, either temporarily or permanently (depending on the financial
circumstance), with prior notice to and consultation with the Project Director. Layoffs can be
avoided by the Project Director replenishing the Projects cash resources to allow for work to
continue. CultureTrust will not accrue wages or taxes if they cannot be paid. Payroll processing
costs are included in the 12% base administrative cost allocation, but the Project is responsible
for all wages and employer taxes, in accordance with the law.

Guide for Projects, page 52
CultureTrust Greater Philadelphia


f. Minimum Fund Balance: Once financial activity of greater than $5,000 in throughput (cash-
in/cash-out) has been achieved through your Projects account, the cash balance for all
individual Project subtrusts must remain at a minimum of $250 or more at all times, unless the
Project account is being closed.

g. Priority Payment of Obligations: Payments for a Project will be made in the following priority
order, if for whatever reason there are not sufficient funds to cover all current obligations:

1. Administrative costs allocated to CultureTrusts Administrative Account
2. Outstanding employer tax or sales tax obligations
3. Outstanding insurance costs (if special insurances are in force)
4. Third-party Project vendors other than the Projects leadership team
5. The Projects leadership team (employees and key contractors).

Practically, the core Project team and employees get paid last, as they will be the most
invested stakeholders in the Project. If for whatever reason the Projects fundraising (for which
Project Director and team are principally responsible) falls short of goals, the Projects moral
responsibilities are to outside vendors and service providers before its core Project team.

h. Payment of Insurances: While General Liability and Directors and Officers insurances are
included in the base rate of 12% of gross receipts for all Projects, we require that all projects
allocate in advance (as a pre-paid expense) their share of General Liability insurance to
make their Project active under CultureTrust. No Project is active until the Project buys into
CultureTrusts General Liability policy. CultureTrust will then deduct this expense from its
accounting of the first administrative cost allocations made from your subtrust account.

When you apply to become part of CultureTrust, we also fill out a General Liability application
to add you to CultureTrusts policy. After that, your Projects General Liability insurance needs
are re-assessed annually with the renewal of CultureTrusts policy. In both instances, we
submit an application to CultureTrusts insurance company, and they offer an estimate of what
your Project adds to the policy in exposure. This cost for this extension to our policy is a fixed
fee, based on the size and scope of your Project.

If your Project is coming under CultureTrust for the first time, the minimum funds required to
activate your account are the funds required to cover your share of General Liability insurance.
If you are renewing your share of General Liability coverage, your share of coverage must be
allocated before you can continue work on your Project. By simply adding your Project to an
existing policy, you are saving considerable money in underwriting costs. For instance, a
$150,000 Project may pay anywhere from $1,200 - $2,500 per year for a General Liability
policy, much of which are the minimum administrative expenses charged by the insurance
company to underwrite and create the new policy. The same Project under CultureTrust is
simply charged an incremental amount to extend the coverage of CultureTrusts existing
policy, which would likely fall between $100 and $500 per year for the Project. This represents
a substantial cost savings over buying your own policy.

o Workers Compensation Insurance: CultureTrust requires Workers Compensation insurance for
all contractors and employees of Projects and will allocate the appropriate cost of this
insurance to each Project. This insurance is not included in the 12% base cost allocation.

Workers Compensation insurance is billed out per the current Workers Compensation insurance
rate for CultureTrust, which may change from time to time based on the term of the policy and
the kinds of Projects that are active. The cost allocated to an individual Project is based on the
total payroll (1099MISC and W2) for the Project for the duration of the policy, or the duration
of the Project, whichever is longer. If the policy rate changes in the middle of a Projects
Guide for Projects, page 53
CultureTrust Greater Philadelphia


duration, the effective rates for calculating cost allocations to Projects will change, and
Project Directors will be notified of the change in rate.

There is frequent debate about whether fees to 1099MISC independent contractors should be
included in calculating Workers Compensation insurance, since they should be maintaining their
own insurance. In the interest of safety and security of Project workers, it is the policy of
CultureTrust to assume that contractors do not carry their own insurance and that the
responsibility to insure contractors falls to CultureTrust.

Workers Compensation insurance is calculated based on a rate assigned by the insurer that
establishes a cost per $100 of total payroll (1099MISC + W2). For instance, if CultureTrusts
policy rate is $1.50 per $100 and the total payroll of a Project is $100,000, then the Workers
Compensation cost allocation for the Project for that period would be:

$100,000 / $100 = $1,000 x $1.50 = $1,500 in insurance cost allocated to the Project.

Unlike General Liability insurance, cost allocations for Workers Compensation are made as you
pay contractors or employees. We allocate your share of Workers Compensation on a monthly
basis based on actual payroll and CultureTrusts current policy rate. At the end of the policy
year or the Project (whichever is earlier), an audit is performed and adjustments are made for
actual payroll. Following the audit either an additional cost allocation will be made to the
Project (if payroll was under-allocated) or money will be refunded to the Project (if payroll
was over-allocated).


Revenues (receivables) management policies

A few definitions

Earned Revenues are cash funds your receive in exchange for delivering goods, services, or
experiences to buyers, customers, audiences, clients, etc. There is a clear exchange of benefit at the
core of earned revenues.

Contributed Revenues are cash funds you receive from donors or funders (grants and contributions
from foundations or government agencies) where there is not an exchange of benefits. These revenues
are sometimes called unearned revenues for this reason.

In-kind Revenues (and Expenses) are non-cash contributions of services and labor (time), materials,
technology, and other goods. Because in-kind contributions substitute for an expense (you would
otherwise have to pay for the services or goods), CultureTrust will account for any in-kind contributions
as both revenue AND expense. They must balance each other out on both the income and expense side
of the Project.

Corporate Sponsorship vs. Giving: Corporate support of the charitable sector takes two forms, and its
important to understand the nature of the relationship in dealing with corporations. If you are unclear
about the nature of the support, Projects are encouraged to seek clarification. Support from
corporations has two basic forms. Sometimes a blend these approaches may be taken:

o Corporate Philanthropy/Giving: Corporations often contribute support to nonprofits either
directly or through corporate foundations. Many large corporations set up separate foundations
function as a tax shelter and means of providing charitable support to the companys
community. Funding that is entirely charitable is 100% tax-deductible for the corporation
within the extent of the law and is recorded as contributed revenue.

Guide for Projects, page 54
CultureTrust Greater Philadelphia


o Corporate Sponsorship: The term corporate sponsorship implies a commercial exchange. The
corporation is paying the charity money, and the charity is leveraging its audiences, events,
content, etc. to deliver advertising, promotional, or networking value to the corporation.
Because there is an exchange of value (money for advertising - see earned revenue above),
corporation sponsorship arrangements are frequently referred to as deals, and revenues are
recorded by CultureTrust as earned, not contributed revenue.

Receivables and revenue management policies

a. Receiving Methods: CultureTrust receives donations by check (personal or corporate) or online
(electronically). It cannot receive contributions in currency. Receivables are taken in on an
ongoing basis. CultureTrust can also receive contributions of securities (stocks, bonds, and
other instruments). These gifts are transferred to a brokerage account controlled by
CultureTrust and sold through this account, and the cash proceeds accounted to your Project.
CultureTrust will instruct securities to be sold within 3 business days of receipt into its
brokerage account. Any brokerage fees or other special services will be allocated to the
recipient Project.



All contributions (cash or in-kind) must be accompanied by the following contributor
information, whether individual, foundation, government, or corporate:

o Full name of contributor(s)
o Memo on check or other accompanying notation including name of recipient Project
o Mailing address
o Telephone and/or email contact
o Date and amount of contribution

b. Pledges: CultureTrust will also book and manage pledges, which are promises or commitments
(formal and informal) to contribute funds to a Project. These include grant award letters
(issued in advance of the grant monies be paid), as well as letters and electronic
communications promising specific contributions. CultureTrust can only acknowledge a pledge
if received in written form (electronic or hard copy). The same contributor information listed
above applies to pledges.

c. Restrictions on Revenues: All funds (earned and contributed) are restricted for use by the
Project that received them and cannot be spent on other Projects under CultureTrust. There is
no borrowing funds among Projects, and CultureTrust does not maintain a revolving Line of
Credit or cash reserve for temporary lending to Projects for cash flow purposes.

Within each Project funds will be sub-designated as restricted to a specific purpose within
the Project (such as artist fees, or travel), following funder and donor restrictions, or
unrestricted, meaning they can be spent on any Project cost, as approved by CultureTrust
under advice from the Project Director.

Contributions restricted for a specific purpose by a donor or funder may not be allocated or
spent for purposes other than those specified by the funder, unless written permission for re-
allocation is secured from the donor or funder.

d. Returned Checks: If a contribution check is returned on account of insufficient funds or for any
other reason, any resulting bank fees will be allocated to the Project to which the contribution
was made. It is up to the Project Director to resolve any issues or disputes with donors or
funders that result from failed transactions.

Guide for Projects, page 55
CultureTrust Greater Philadelphia


e. Acknowledging Contributions of Cash and Securities: CultureTrust will acknowledge all single
gifts of $500 or more with a written acknowledgement letter, copied to the Project Director.
CultureTrust will issue receipts for any other donations below $500 at the request of the
contributor. CultureWorks issues a report once per month at the end of the month to the
Project Director of all contributions made in the last preceding month, including full contact
information so that the Project Director may issue her own acknowledgements.

f. Acknowledging In-kind (Non-cash) Contributions: CultureTrust will acknowledge all in-kind
contributions through a letter describing the nature and amount of the contributed goods or
services, the Project to which they were given, and the date(s) of contribution.

CultureTrust will not provide or acknowledge to the contributor a cash value for in-kind
contributions. It is the responsibility of the contributor to provide to their accountant and the
relevant taxing authorities the value of their contributed goods or services, which may be
accompanied by CultureTrusts letter. CultureTrust may however, if desired by the Project
Director, record a cash value for the in-kind contribution in its bookkeeping for the Project.


Guide for Projects, page 56
CultureTrust Greater Philadelphia


8. All the corporate and legal stuff you ever wanted to know


How CultureTrust is legally structured

CultureTrust Greater Philadelphia is a nonprofit 501(c)(3) trust (federal tax-exempt status pending)
that serves as the direct management and fiduciary umbrella for arts and heritage projects and
organizations operating in the Greater Philadelphia metropolitan area.

CultureTrust follows the legal formation of a trust and not a corporation, which is the most common
form of nonprofit organization. Even though trusts are not required to register with the Commonwealth
of Pennsylvania Department of State (as nonprofit corporations are), CultureTrust has its own Federal
Employment Identification Number (FEIN) and has applied to the Internal Revenue Service (IRS) for
federal tax exemption under Internal Revenue Code Section 501(c)(3). CultureTrust functions just like
any other nonprofit organization in its ability to receive grants and tax-deductible contributions.

CultureTrust is governed by a Board of Trustees, which is responsible for fiduciary oversight of all of
the trusts projects. The Trustees must approve any Project that wishes to operate under CultureTrust,
and they set policies and engage other services providers to fulfill their fiduciary responsibilities.

The ability of the Trustees to perform this intermediary watchdog duty is based fundamentally on a
relationship of trust among both donors and Project Directors, hence trust and trustees. In fact,
the legal form of a trust is one of the oldest charitable constructs in the world, originating in English
law, and is the precursor of the nonprofit corporation in America.

So, how is CultureWorks Greater Philadelphia involved?

CultureTrust contracts with CultureWorks to be the Trust Administrator. Under this agreement
CultureWorks staff is responsible for many of the day-to-day, back office functions of CultureTrust,
including bookkeeping, insurance and human resources administration, accounts payable/receivable
management, project intake and preliminary assessment, and general project management, among
other duties. The administrative face that CultureWorks provides for CultureTrust is represented
publicly by the Trust Program under CultureWorks. CultureTrust and CultureWorks, however, are fully
independent nonprofits and do not share directors/trustees, legal counsel, or accounting firms.





Board of Trustees
Board of Directors
Independent Auditors &
Legal Counsel
Management Staff
(and contractors)
Independent Auditors &
Legal Counsel

Project Directors
(and team members)
Trust
Administrator
Agreement
Guide for Projects, page 57
CultureTrust Greater Philadelphia


Governance and risk management

Governance and board oversight

All Projects under CultureTrust fall under the fiduciary and governance oversight of the Board of
Trustees of CultureTrust. The Board meets four times per year (once per quarter) to approve new
Projects and address ongoing governance issues and policy development for CultureTrust.

The responsibilities of Trustees of CultureTrust are to

Maintain the integrity and focus of CultureTrusts mission and support of the arts, heritage, and
creative community in Greater Philadelphia.

Serve as fiduciaries for all of the projects and organizations under CultureTrust, including
approving new projects for inclusion under the trust, providing oversight to active projects,
and assuring donors and funders that projects are in compliance with donor intentions.

Shape operating policies and ensure transparency in these policies, processes, and the financial
management of CultureTrust, as well as oversee the annual compliance process, including the
independent audit and filings with taxing and regulatory authorities.

Advocate in the community to project and organization leaders and funders and donors to
consider CultureTrust as a management and infrastructure solution for improving the overall
operating efficiency and impact of the sector.

CultureTrust Board Giving & Fundraising Participation: Trustees of CultureTrust are not required to
contribute personally to Projects, nor are they expected to participate in fundraising activities for
Projects. Since they serve on behalf of multiple Projects, these tasks would place an unreasonable
burden on Trustees for so many Project. For this reason, Trustees responsibilities (as stated above) are
purely fiduciary in naturethey work to represent the community, reach out to Projects and
organizations, oversee the work of CultureWorks as Trust Administrator, and be a watchdog for the
interests and donors and funders of Projects.

Fulfilling board-related functions under CultureTrust

For Projects without any affiliation with a nonprofit...

Projects do not need to build a board of directors for governance reasons. These functions,
which are necessary to fill if you operate an independent nonprofit organization, are fulfilled
by the Board of Trustees of CultureTrust.

Projects are encouraged, nevertheless, to develop committees to address various other
functions that boards often serve, such as offer professional or subject matter advice,
fundraising, networking, outreach, volunteerism, etc. related to the Project. These
committees do not serve a fiduciary or governance role, but can provide value support to a
Project and its leadership.

For Projects connected to existing nonprofit organizations

For Projects connected to existing nonprofits, the board of the nonprofit needs to stay active if
it chooses to keep the nonprofit organization active and not wind it up. As stated in Section X,
if there are intellectual or real property assets, or significant debts or long-term liabilities
connected to the organization, the nonprofit must remain active as the title holder to these
assets and liabilities. CultureTrust will not assume ownership of intellectual/real property,
assets, or debts.
Guide for Projects, page 58
CultureTrust Greater Philadelphia




Assuming the board of the nonprofit keeps the organization active, they can still transfer all of
the day-to-day financial operations (and thus the majority of the ongoing liabilities) of the
organization to CultureTrust. For such organizations, their participation in CultureTrust is not
to obtain access to charitable status, but is a means of obtaining lower-cost (or higher
capacity) back office management. In this case, the organization would cease receiving funds
and liabilities in the name of their nonprofit. They may choose to maintain the organizations
bank account(s), maintaining minimum balance(s) to avoid fees. Since no fundraising is
happening in the name of the nonprofit, annual compliance costs for the nonprofit corporation
become virtually none, as it only needs to file an IRS 990-N (a simple postcard form) once a
year, and would require no services from a Certified Public Accountant, for instance.

Directors of the dormant nonprofit retain their fiduciary and governance responsibilities only
for any assets or liabilities that remain in the name of the organization and the for
organizations corporate entity itself. They retain limited to no fiduciary liability for the
organizations operations, since most or all of that will have been transferred to CultureTrust.
As a result, the organization does not have to maintain Directors and Officers insurance for its
board (separate from CultureTrust), though the board may elect to do so.

Beyond these vestigial fiduciary duties, board members also should continue to perform other
functions that support the Project, such as fundraising, volunteer labor, subject matter
expertise, outreach and networking, and professional service.


Working with children under 18 years of age

If your Project entails direct, hands-on work with under-aged children, such as training, teaching,
workshopping, field trips, etc., CultureTrust requires additional risk management provisions. (This does
not include children as general audience members for a performance, for instance, or other kinds of
passive program participation.) If you are working with children, there are two options:

1. Risk Management through a Partner: In this scenario, you are working with a partner, such as
a school or other educational program, which assumes full responsibility and liability for your
work. This should include full background checks on all personnel working directly with
children, as well as appropriate insurances to cover improper sexual conduct and other special
liabilities. A written warranty signed by your partner organization (form provided by
CultureWorks) that attests to these responsibilities will be required before work begins.

2. Risk Management through CultureTrust: In this scenario, you are covered for your work
through CultureTrust directly. This requires the following:

a. Background checks for all personnel working directly with children. CultureTrust
can facilitate this process through its human resources management vendor, and
any attendant costs will be allocated to your Project.

b. Purchase of additional insurance to cover improper sexual conduct or other
liabilities, per the recommendation of CultureTrusts insurance broker. Again,
these additional underwriting costs will be allocated to your Project.

c. Training for your personnel (if deemed necessary) in best practices in working with
under-aged children. This may or may not be necessary, depending on the resume
and work experience of the personnel hired to perform this work.

Guide for Projects, page 59
CultureTrust Greater Philadelphia


Why operating under CultureTrust is NOT fiscal sponsorship

CultureTrust is a means through which charitable projects and organizations that have affinities in
subject matter and mission can share critical support infrastructure: back office management staff,
insurances, risk management policies and practices, and other benefits. We argue that our approach is
not, in fact, fiscal sponsorship.

We are including this section because the way in which CultureTrust shares its resources may be
viewed as a form of fiscal sponsorship. Fiscal sponsorship describes a field of practice in the United
States dating to 1959 in which a registered nonprofit organization assumes financial and management
responsibility for charitable projects and organizations other than its own.

In recent years, the funding community has been calling for reduction in nonprofit infrastructure,
mergers, partnerships, and other organizational efficiencies in response to increased competition for
institutional support and shifting funding policies. Even though fiscal sponsorship offers one path to
such efficiency, there is still lingering skepticism within in the regulatory and funding fields, mixed
with a degree of misinformation and misperception about fiscal sponsorship.



We surmise that the reason for continued resistance to fiscal sponsorship in the funding community is
owing to the fact that the most commonly practiced form of fiscal sponsorship entails an arms-length
relationship with the project and an effective pass-through of funds. This does present many
challenges to basic oversight and management of the project by the charitable sponsor. Because of
both the real and perceived potential deficits in oversight and management control associated with this
common model, funders and regulators view fiscal sponsorship in general with skepticism, though there
are many different established legal forms.

There are in fact six recognized ways to structure fiscal sponsorship legally. The most common model,
as mentioned, is the pre-approved grant model or Model C after the classification system
established by the leading legal expert on fiscal sponsorship, attorney Gregory L. Colvin. The structure
of CultureTrust most closely resembles comprehensive fiscal sponsorship or Model A after Colvins
system, which is far less widespread in the cultural field. Aside from CultureTrust, we know of only one
other comprehensive fiscal sponsor operating in the arts and culture field, Springboard for the Arts in
St. Paul, Minnesota.

The six models for fiscal sponsorship run the gamut between direct project relationships, where there
is no degree of management distance between the legal charity and the project, and arms-length
project relationships, where there is some remove between the registered charity and the people
implementing the project. These two extremes are represented in the two modelscomprehensive
fiscal sponsorship (Model A) and the pre-approved grant relationship (Model C)mentioned above. Lets
take a look at both of these models as they illustrate the argument we are making that CultureTrust is
not fiscal sponsorship in the arms-length sense.
We argue that CultureTrust is not fiscal sponsorship, as it is commonly understood. It is
rather a trust relationship or direct project relationship, in which the Projects of
CultureTrust receive direct management and oversight.

This relationship is no different from that of the relationship between a discrete program of
an organization and the organization itself. For example, a museum may support an
education program, a conservation program, and multiple exhibition programs all under one
organization. CultureTrusts many Projects are no different than these various programs of
the museum.

Guide for Projects, page 60
CultureTrust Greater Philadelphia


The Pre-approved Grant Relationship is built on a re-granting relationship between the nonprofit
sponsor and the project. The sponsor approves of a grant or an individual donor solicitation. Grants
and donations are then made to the sponsor in the name of the project, and the sponsor re-grants the
funds to the project as they are received. This model is often incorrectly referred to as a pass-
through or conduit model. Though not a pass-through (in the legal sense), this model does
relinquish operational control of charitable funds to the project. The relationship is defined by a two-
party contract outlining the responsibilities of the sponsor and the project leader, including the
responsibility of the project to report back to the sponsor about how funds are spent so that the
sponsor can in turn report to the funder. Even with the most detailed and well-constructed contract,
functional control over the project by the sponsor is mitigated by this arms-length relationship. The
following shows the basic financial relationships and monetary flow pertaining to contributed revenues
in the pre-approved grant model.



The pre-approved grant model is the most common form of fiscal sponsorship in the arts and culture
field, and has been made popular nationally by such organizations as Fractured Atlas and New York
Foundation for the Arts (NYFA). Locally, the Painted Bride Arts Center offers this model, as do many
other cultural nonprofits, largely on an ad hoc or informal basis. Given the popularity of this form of
fiscal sponsorship, it is widely become synonymous with fiscal sponsorship in general. And since it
entails an arms-length relationship, it is viewed with a degree of wariness from funders and donors.

In contrast, Comprehensive Fiscal Sponsorship (CFS) permits no financial independence (real or
apparent) for the Project. It assumes 100% of the liability as the employer, contractor, and insurer of
everything related to the Project. For funders and donors, this is a good thing, as they can be assured
that there is close oversight and control of the Project, both for financial/fiduciary reasons, and in the
interest of the Projects overall success. In this model, the Project is taken in-house with the sponsor
and has no separate legal status. There is no two-party contract, as with the pre-approved grant
model. Instead, the Project is simply a program of the sponsoring organization. The following shows
the basic financial relationships and monetary flow pertaining to all revenues (earned and contributed)
in the comprehensive fiscal sponsorship model.



This model is widespread in the social services and health/human services fields. In fact, it was
pioneered by the social services organization Third Sector New England in 1959. There are dozens of
comprehensive fiscal sponsors nationwide, nearly all of which are focused on social services. In
Philadelphia there are two of note: Urban Affairs Coalition and Resources for Human Development,
both of which support predominantly social/human services projects and organizations, and
occasionally cultural or artistic endeavors. CultureTrust is the second organization that we know of
after Springboard for the Arts that follows the comprehensive approach for arts and culture. It is the
first organization of its kind in the Greater Philadelphia region.
Funder
or
Donor
Sponsor
(Grantor)
Project
(Grantee)
Vendors &
Contractors
Funder
or
Donor
Sponsor
CultureTrust
Vendors &
Contractors
Guide for Projects, page 61
CultureTrust Greater Philadelphia


The major operational differences between these two fiscal sponsorship models (and that of an
independently incorporated charitable organization) are diagramed below. In all of the relationships
below, including a conventional stand-alone charitable organization, there is a often a distinction
between internal permanent organizational staff and employees and often more temporary external
contractors and employees who are hired to work on a project or program. In the case of the
comprehensive fiscal sponsor, the permanent management staff are those of the sponsor organization,
and the Project staff are in essence more changeable, as Projects expand and contact in activity, or
come and go. In the case of CultureTrust, the permanent staff is provided by the Trust Administrator,
CultureWorks, allowing Projects to expand and contract, come and go.

Model
Project is a
separate
entity
Relationship
between project
and sponsor
Grants and
Donations
Belong to
Financial
responsibility
to 3
rd
parties
Insurance
liability
attaches
Tax liability and
compliance
responsibility
Independent
501(c)(3)
Organization
No
Employer-Employee
Contractor, Insurer
Organization 100% Organization
100% to
Organization
100% Organization
IRS 990/1099/BCO
Comprehensive
Fiscal Sponsorship
Model
No
Employer-Employee
Contractor, Insurer
Sponsor
Organization
100% Sponsor
Organization
100% to
Sponsor
Organization
100% Sponsor
Organization
IRS 990/1099/BCO
Pre-approved
Grant
Model

Yes Grantor-Grantee
Sponsor/
Grantor
Sponsor/Grantee
All gifts/donations

Project/Grantee
All vendors,
contractors, employees
100% to
Project/Grantee
Sponsor/Grantor
IRS 990/BCO

Project/Grantee
Various Tax Filings
Per Legal Status

Summary - Why CultureTrust is not fiscal sponsorship

To summarize, we propose that fiscal sponsorship has come be understood as an arms-length
relationship, mostly through the preponderance of the pre-approved grant (pass-through) model. The
distant relationship and frequent lack of direct oversight between the sponsoring organization and the
project has led to wariness and caution on the side of institutional funders and sometimes even
individual donors.

You will notice from the above chart that there is no difference between the operations of so-called
comprehensive fiscal sponsorship and those of an independent nonprofit organization. There is,
however, considerable difference in legal relationship, oversight, and structure between the
independent nonprofit organization and the popular pre-approved grant model.

With CultureTrust there is no distance between the Project and the fiduciary organization.
CultureTrust is 100% liable for delivery of the Project, which ensures the same level of oversight and
management that a program operating under an organization enjoys. The only difference is that
CultureTrust assumes no specific curatorial or content identity, thereby allowing for a wide variety of
cultural Projects to coexist under its missionsharing back office functionswhile retaining their
individual Project identities.

For these reasons, we argue that fiscal sponsorship is a misnomer in the case of comprehensive fiscal
sponsorship. It is not fiscal sponsorship at all, in the arms-length sense that is most widely known
through the pre-approved grant model. It is instead a direct project relationship.

As a result, we do not use the terms fiscal sponsorship in connection with CultureTrust. Instead
we say, <<PROJECT NAME>> is a program of CultureTrust Greater Philadelphia. This is the
simplest and clearest way of describing your relationship to CultureTrust.

Guide for Projects, page 62
CultureTrust Greater Philadelphia


Ownership of real property, collections, intellectual property, and technology

The model of CultureTrust is to operate everything and own nothing.

So, if your Project is intending to create intellectual property (specific design products, artistic works,
proprietary processes, research, data, etc.) CultureTrust will abdicate any ownership of that property
in its Subtrust Declaration Letter. Determination of ownership for such intellectual property is up to
the Project Director and any other owners/stakeholders in the intellectual property. If you need legal
or other advice related to managing your intellectual property, we can refer your to professionals in
our network.

Real property (land, buildings, monuments), and other property, such as equipment, furnishings, and
special collections (artifacts, libraries, archives, etc.) are likewise not subject to ownership by
CultureTrust. These kinds of property must be titled to a separate organization, individual, or entity.
As discussed elsewhere, CultureTrust can insure such property, naming the title holders as
additionally insured.

In the case of real property, CultureTrust assumes that an individual, legacy organization, other
corporation, such as an historic site owned by an existing nonprofit, will retain title to the real
property. The directors of that organization will retain their fiduciary responsibility relative to the
property, but they would transfer all fiduciary responsibility and liability for the operations of the
Property to the Trustees of CultureTrust as a Project of CultureTrust.

Note on Real Property & Technology/Equipment Purchased through CultureTrust

While we dont anticipate that Projects of CultureTrust will be purchasing substantial real property
(land/buildings) on a regular basis (though it could happen), we do expect lots of purchasing of
technology (software and hardware). If a Project does need to purchase real property, we will require
that the deed holder of that property be a separately formed charitable organization. Funds to cover
purchase could be raised through CultureTrust, but our interest is not in holding the deed to real
property or collections.

In the case of hardware and software, it is a slightly different story, and the Project Director needs to
consider several possible scenarios when making decisions about purchasing technology:

1. Technology purchased directly with funds from your CultureTrust account is the
property of CultureTrust, not your personal property. Say your Project requires
photography. If you raise $5,000 through CultureTrust to buy a camera, and CultureTrust
makes the purchase, the camera becomes a charitable (i.e., public) asset, not your
personal property. You can use the camera as you wish for the purpose and duration of
your Project. But when the Project is over, you dont get to keep the camera. It is not
personal property. It must be used for another charitable purpose under CultureTrust or
donated to another charity of similar mission for further charitable use.

2. If you wish to privately own the technology you purchase, you must pay for it with
individual income earned by you for your work on the Project (or from other personal
income or assets). For instance, if your intention is to privately own the camera, you can
use approved fees or salary earned by you from your Project to purchase the camera. Since
you used your individual earned income, the camera becomes your property. You may
continue to use the camera for your Project, and CultureTrust can even insure it for you, if
you wish, but at the end of the Project, you can keep your camera.




Guide for Projects, page 63
CultureTrust Greater Philadelphia


Existing debt and other liabilities

If an existing organization coming into CultureTrust carries any kind of long-term debt or liabilities
(lines of credit, related-party loans, credit card debt, mortgages, and other notes), those debts or
credit lines must remain in the name of the individual or existing organization. CultureTrust will not
assume title to pre-existing debts or long-term liabilities.

If there are significant long-term debts in the name of the organization applying to CultureTrust, and
those debts may have an impact on the Project, CultureTrust may require the organization to submit a
plan to reduce or eliminate the debt as part of the Project. The debt would remain titled to the
organization or original debt-holder, but revenues generated through the Project under CultureTrust
may be used to make payments against the debt.


Balance of management powers: fiduciary vs. creative authority

CultureTrust is a pure fiduciary, meaning that its chief responsibility is to ensure the Project is
successfully realized and delivered and that promises to donors and funders are fulfilled. Success and
delivery for the Project are defined by the Project Director through the application process and overall
design of the Project.

Beyond this general fiduciary role, CultureTrust and its administrator CultureWorks do not make
aesthetic, artistic, or key subject matter or staffing decisions. For these decisions, we rely heavily on
the Project Director to instruct CultureTrust as to the best staffing or vendor solutions. This means that
CultureTrust is not in the business of being an artistic director or passing judgment on the Project from
a curatorial or aesthetic standpoint.

CultureTrust will only step in and influence staffing or vendor decisions if it feels that a specific
decision (or lack thereof) may lead to failure of the Project overall. In stewarding any Project, there is
great reliance on a true relationship of trust between CultureTrust and the Project Director.


Long-term ownership of your organization or Project

CultureTrust has no interest in assuming founding credit for or long-term ownership (legal or
otherwise) of a Project (whether that is a Project without prior nonprofit affiliation or an existing
organization). Its purpose is to provide shared operating infrastructure for Projects, nothing more. This
assertion is further supported by the fact that CultureTrust is not interested in ownership of
intellectual property and other assets related to its Projects.

We receive frequent questions from Project founders about whether CultureTrust might want to take
over the Project or organization for the long term. The answer is, No. CultureTrust is not interested
in taking over your Project concept or organizational mission. Its purpose is to help you administer your
Project more effectively with respect to cost and labor, not to acquire Projects or organizations and
their assets.

Any Project under CultureTrust assumes a strong Project Director and group of stakeholders for the
Project, without which the Project would not succeed. CultureTrust and its administrator CultureWorks
are not interested in assuming the role of long-term Project Director or permanent stakeholder.





Guide for Projects, page 64
CultureTrust Greater Philadelphia


How a Project exits CultureTrust

Leaving CultureTrust is a simple four-step process. Throughout this process, as with all other
management processes, the Trustees of CultureTrust maintain ultimate authority over the way in which
a Project leaves the trust.

1. Written Request from the Project Director: The Project Director writes a letter addressed to
the Board of Trustees of CultureTrust Greater Philadelphia and delivered to the Project
Manager at CultureWorks expressing her desire to dissolve the Projects subtrust and cease
operations under CultureTrust.

2. Creation of Settlement Strategy for all Project Assets & Liabilities: CultureWorks and the
Project Director work together to arrive at a timeline and approach for settling all outstanding
liabilities (bills and obligations) that are in the name of the Project and CultureTrust at the
time the request to dissolve was created, as well as for dispersing any remaining cash in
accordance with charitable law. A written Settlement Letter is created by CultureWorks
summarizing this strategy.

Charitable law mandates than any remaining charitable assetsin this case, remaining cash
restricted to the Projectmust be either (a) returned to the funders or donors or (b) dispersed
to a registered charity in good standing of similar mission and purpose. Charitable funds may
not revert to the Project Director or any other private parties unless to settle approved debts
and liabilities.

If a Project connected to an existing charitable organization wishes to resume operating under
the charitable organization, CultureTrust may agree to transfer any remaining funds back to
the existing nonprofit, provided the nonprofit corporation has remained active and is in good
standing. CultureTrust may also contribute the funds to another charity of like mission or
purpose. This decision is at the sole discretion of the Board of Trustees of CultureTrust.

A Project will not be permitted to leave CultureTrust without first settling all debts and
obligations that remain in the name of CultureTrust.

3. Approval of Settlement Letter by Board of Trustees: The Board of Trustees of CultureTrust
has full authority and discretion in deciding how to manage any remaining charitable funds
restricted to a Project and the Board must approve the final Settlement Letter. The Settlement
Letter will be reviewed and approved by the Trustees at the next available meeting. The Board
may also seek legal counsel or the input or approval of the Attorney General of the
Commonwealth of Pennsylvania concerning the dispersement of any restricted Project assets.

4. Execution of Settlement Letter by CultureWorks: Finally, CultureWorks is charged by the
Board to work with the Project Director to implement the approved settlement strategy for the
Projects account, in accordance with the Settlement Letter.


Guide for Projects, page 65
CultureTrust Greater Philadelphia


Document handling and records transfer

All Projects are asked to keep copies of fundraising-related documents for their own record keeping
while working under CultureTrust, and for the eventuality that they might leave CultureTrust. We
assume that most of the administrative and program-related documents for the Project will be
maintained by the Project Director and other Project staff outside of CultureWorks.

CultureWorks will maintain two sets of files on behalf of CultureTrust. After a Project leaves
CultureTrust, these files will remain under CultureWorks stewardship, in accordance with document
handling laws and best practices. Projects will have access to copies of the following documents upon
leaving CultureTrust, so that they may continue to manage their work.

Financial Documents: We will make available complete electronic copies of all of the financial
documents and accounting for your Project while under CultureTrust.

Fundraising Documents: We will make available copies of all fundraising and grants
management files accumulated while operating under CultureTrust.

Other Documentation: Depending on the Project, CultureWorks may have maintained other
documentation, which will likewise be made available to the Project Director upon exit from
CultureTrust.