Fiscal Sponsorship Summary

1What Is Fiscal Sponsorship?

Fiscal sponsorship is a legal arrangement where an established nonprofit organization (the "fiscal sponsor") serves as the legal and financial home for a project or initiative. Think of it as an umbrella that provides legal and financial protection.

How It Works Your organization operates under the fiscal sponsor's nonprofit status and tax ID. All funds, donations, and grants are received by the fiscal sponsor on behalf of your project. The fiscal sponsor then manages these funds according to agreements and applicable policies.

Key Benefits:

• Tax-Exempt Status: Donors can receive tax deductions for contributions
• Immediate Credibility: Operate as a nonprofit without lengthy incorporation processes
• Professional Financial Management: Access to established accounting and banking systems
• Legal Umbrella: Protection through established nonprofit infrastructure
• Simplified Administration: No need to maintain separate nonprofit status

2About Hack Club Bank (HCB)

The Hack Foundation, doing business as Hack Club, is a 501(c)(3) nonprofit organization dedicated to empowering the next generation of makers and builders.

What HCB Provides Hack Club Bank is a comprehensive financial platform that offers nonprofit banking services, financial tools, compliance support, and a legal umbrella for hundreds of student-led organizations and projects worldwide.

HCB Services Include:

• Bank Account Management: Dedicated banking accounts for your organization
• Financial Tools: Budgeting, expense tracking, and financial reporting tools
• Payment Processing: Ability to receive donations, grants, and process payments
• Compliance Support: Help navigating nonprofit regulations and requirements
• Tax Benefits: Access to 501(c)(3) nonprofit tax status
• Community: Connection to network of student-led organizations

3What This Means for LinkScape

By operating under HCB's fiscal sponsorship, LinkScape operates as a program of the Hack Foundation. Here's what you need to know:

IMPORTANT: LinkScape is NOT a separate legal entity. We operate as a program under Hack Club's 501(c)(3) status.

Fund Flow All donations, grants, and funds received for LinkScape activities flow through Hack Club's bank account. LinkScape does not maintain a separate bank account.

Tax-Deductible Donations:

Donors can claim tax deductions for contributions to LinkScape because we operate under Hack Club's tax-exempt status. Donors receive receipts from Hack Club Bank.

Policy Compliance:

LinkScape must adhere to all HCB policies and procedures. These policies are designed to ensure compliance with nonprofit regulations and protect both LinkScape and Hack Club.

4Key HCB Policies (summary)

To maintain our nonprofit status and ensure responsible financial management, LinkScape must follow these key HCB policies:

Expense Approval Process All expenses must be submitted through HCB's platform for approval. Expenses should include itemized receipts and clear descriptions of how they support LinkScape's mission. Approval timelines vary but are typically processed within 5-7 business days.

Reimbursement Procedures LinkScape members may advance personal funds for approved expenses and submit for reimbursement. Reimbursements are processed through HCB after approval. Keep all receipts and documentation for audit purposes.

Acceptable Expenses Expenses must align with LinkScape's mission and nonprofit status. Generally acceptable: supplies, equipment, event costs, travel for organization activities, software subscriptions. Not acceptable: personal purchases, alcohol, weapons, illegal items, or unrelated expenses.

Grant & Donation Acceptance LinkScape can accept donations and grants on behalf of HCB. Large donations or grants require HCB approval before acceptance. All donors receive tax receipts from Hack Club. Restricted funds must be used according to donor specifications.

Record Keeping & Documentation Maintain detailed records of all transactions, expenses, and activities. This includes receipts, invoices, attendance logs, and budgeting documents. These records support audit compliance and organizational transparency.

5Resources & Links

For more information and to access HCB tools, visit:

Questions or Support:

• Email: finance@hackclub.com (HCB Financial Support)
• Email: leadership@linkscape.app (LinkScape Leadership)
• HCB Docs: https://hcb.hackclub.com/docs
• Slack Channel: #linkscape-finance

6Frequently Asked Questions

Q: Can LinkScape raise money?

A: Yes! As a program under HCB's nonprofit status, LinkScape can accept donations, grants, and fundraise. All funds are received through Hack Club's account.

Q: Are donations to LinkScape tax-deductible?

A: Yes. Because LinkScape operates under Hack Club's 501(c)(3) nonprofit status, donations are tax-deductible. Donors receive tax receipts from Hack Club Bank.

Q: How do I submit an expense for reimbursement?

A: Submit a reimbursement request through HCB's platform with itemized receipts and a description of the expense. Include how the expense supports LinkScape's mission.

Q: What happens if I spend money without approval?

A: Unapproved expenses may not be reimbursed. Always get approval before spending personal funds. Submit requests through HCB before making large purchases when possible.

Q: Can LinkScape have its own bank account?

A: No. As a program under HCB's fiscal sponsorship, all funds flow through Hack Club's account. This is part of the fiscal sponsorship model.

Q: What if LinkScape wants to leave HCB sponsorship?

A: Organizations can transition away from HCB sponsorship, but this is a significant undertaking. Contact HCB leadership to discuss this option.

Q: Can I use LinkScape funds for personal expenses?

A: No. All funds must be used for LinkScape activities and mission-aligned expenses only. Personal use of organizational funds is prohibited.

Q: Who audits LinkScape's finances?

A: Hack Club conducts regular audits and reviews of all programs, including LinkScape. Maintaining good records helps with audit compliance.

Document Information

Document ID: LS-GOV-006

Version: 1.0

Effective Date: February 2026