Fiscal Sponsorship Policies of Karuna Foundation

Updated as of July 14, 2025

General Requirements

• Separate Legal Entity. Although Karuna Foundation (“Karuna”) will properly report any funds or property it receives for the purposes of the Project, because Grantee remains a separate legal entity, it will continue to be subject to all laws, regulations, registrations, and filing requirements applicable to it, compliance with which shall remain its sole responsibility.
• Grants Received. Karuna management must sign all original grant agreements and be copied at least two week in advance on all interim and final report submissions required under any grant agreement associated with the project. Ensuring compliance with the terms of any grant agreement, including the preparation of any required grant report, is the responsibility of Grantee, although ultimate responsibility for administration of funds in the Restricted Fund rests with Karuna. Grants involving government or public agency monies typically have very heavy reporting and auditing requirements that Grantee’s agents, acting as agents of and on behalf of Karuna, must discuss with Karuna management in advance of acceptance.
• Accounting. Karuna will separately account for all funds received and expended, including in grants made to Grantee, for the purposes of the Project and will provide Grantee with a monthly accounting of all such transactions. Any desired corrections to such accounting must be requested by Grantee within 30 days after receipt of the accounting. Grantee shall treat all grant funds received from Karuna as restricted assets and shall maintain books accounting for grant funds separately from other funds. All expenditures made in furtherance of the purposes of the Project shall be charged off against the grants and shall appear on Grantee’s books. Grantee shall keep adequate records to substantiate its expenditures of grant funds. Grantee shall make these books and records available to Karuna at reasonable times for review and audit, and shall comply with all reasonable requests of Karuna for information and interviews regarding use of grant funds.
• Karuna Communications. Grantee agrees to respond to Karuna requests and communications in a timely manner.

 

Administrative and Other Fees and Charges

• In order to compensate Karuna for its services provided in administering a fiscally-sponsored project, an administrative fee will be charged. The administrative fee will be structured as a percentage of gross receipts raised in support of the purposes of the Project. The administrative fee will be equal to 0%) of all funds received by Karuna for the purposes of the Project, regardless of source (the “Administrative Fee”).
• The Administrative Fee will be charged at the time the contributions in support of the purposes of the Project are received by Karuna.
• In addition to the Administrative Fees, Karuna shall retain all interest earned in connection with the funds or assets held in the Restricted Fund for the purposes of the Project.
• Such fees and interest will be paid to the general fund of Karuna. They are necessary to compensate Karuna for its services provided in administering fiscal sponsorship, and thus become unrestricted rather than restricted assets when paid to the general fund of Karuna. Once paid to the general fund of Karuna, fees, charges, and interest will not be returned or refunded.