š” The fiscal sponsorship agreement is the contract between your project and The Hack Foundation. Signing it is what lets your project operate under Hack Club's 501(c)(3), so it's the legal foundation of your HCB organization.
Why do I need to sign it?
The agreement sets the terms and conditions of your use of HCB. It lets your project use Hack Club's 501(c)(3) nonprofit status, and it defines a restricted fund for your project.
How you get it
Apply for fiscal sponsorship.
Have a short call with the HCB team.
The agreement is sent to you to review and sign.
If you're under 18
A parent or guardian needs to co-sign the agreement with you.
Will I owe any taxes by signing?
No. Your nonprofit operates as a project under The Hack Foundation, which takes care of all tax-related obligations. All you need to do is upload receipts.
Can I have my own 501(c)(3) at the same time?
No. A project that's fiscally sponsored by HCB can't also be registered elsewhere, and all of that project's funds have to run through HCB. You can start the process of registering your own 501(c)(3) while you're sponsored, but once you receive your own Determination Letter and EIN from the IRS, you'll need to terminate your fiscal sponsorship.
Who owns our intellectual property?
When you become fiscally sponsored, your organization's intellectual property (IP) is linked to your HCB account. Claiming IP ownership through the agreement protects your organization from losing work if a team member leaves. For example, if the person who designed your website moved on, they legally couldn't take the site, or their other work for your organization, with them.
There are also laws requiring a nonprofit's IP to be claimed under the EIN it operates through, mainly to prevent nonprofit IP from being used or claimed for for-profit purposes. Because you operate under the same EIN as Hack Club, we hold legal responsibility for that IP in our name on your behalf.
This doesn't mean Hack Club takes credit for your work or limits it in any way. You keep full control of your organization, there are no restrictions on how you use your IP, and if you ever leave HCB, the IP always follows the legal owners of your organization.
What about work created before I signed?
Anything that existed before you were fiscally sponsored stays as is. The agreement doesn't affect pre-existing IP, code, or materials.
What happens to our money and IP if we leave?
If your project becomes its own 501(c)(3), your assets transfer to the new entity. There's an important nuance: any IP developed using 501(c)(3) nonprofit donor money has to be owned by a 501(c)(3) entity, which is why Hack Club holds it while you're sponsored. So a transfer can only happen if there's a 501(c)(3) successor to receive your assets, either you gain the status yourself, or you move to another fiscal sponsor. If there's no 501(c)(3) successor, HCB can't transfer your funds or assets.