SparkWell FAQs

Note: For quick reference, questions are listed to the right in the table of contents.

Financial Operations & Payments

How long do transfers take once I submit a payment request?

It depends on the receiving bank. Wise-to-Wise transfers are often same-day, while others take 2-3 days. We typically schedule payments on Thursdays.

How do company cards work?

Each Project Lead receives a Mercury debit card with a default $5,000 limit. You can approve cards for additional team members as needed. As your project grows, we'll help you develop a payment approval policy.

Are there fees added on top of Wise's rates for international transfers?

No. We pass through Wise's standard transfer costs and FX margins with no additional fees. If we use another service for a specific transfer, it works the same way—just the service's actual costs.

What financial reporting do we receive?

We provide monthly financial statements and dashboards for your Project. You'll have real-time access to your Mercury account, and we provide budget variance analysis and guidance during monthly check-ins.

SparkWell Fees

What is SparkWell's administrative fee?

The standard fee is 7% of all incoming funds.

What is the minimum fee and how does it work?

The minimum fee is $10,000 for the life of your project; not charged annually or per grant. The fee is assessed if your early funding doesn't generate enough in percentage fees to meet the minimum, we deduct the difference upfront.

For clarity, this is not an additional fee on top of the percentage; it's the minimum total you'll pay in administrative fees over your entire sponsorship period. But we do deduct the fee upfront.

For example, if you receive a $50,000 initial grant, we'd deduct $10,000 (the minimum) instead of $3,500 (7%). When you receive a second $50,000 grant, we'd deduct only $3,500 to reach the total $7,000 owed (7% of $100,000). After that, all subsequent funds are charged the standard 7% rate.

Are there any fees beyond the administrative percentage?

No. The administrative fee covers all SparkWell services including fiscal sponsorship, bookkeeping, monthly financial reporting, bank account management, operational support, and access to the Resource Portal. We don't charge setup fees, exit fees, or transaction fees beyond what third-party services (like Wise) charge directly.

For clarity, we do pass through charges from third-party services at their actual cost. For example, international transfer fees from Wise or other payment platforms.

Are there any additional costs we should budget for?

While SparkWell doesn't charge additional fees, Projects are responsible for:

• Employer of Record (EOR) fees if hiring employees ($450-$500/employee/month through Deel)
• Project-specific insurance (general liability and specialized coverage for your work)
• Optional advisory sessions for specialized support (fundraising, cybersecurity, hiring)
• Any tools, software, or services specific to your project's operations

Independent Contractors

Can our team members work as independent contractors?

Yes. Most SparkWell Projects use independent contractors. The key is maintaining a proper contractor relationship—ensure they understand they're contractors (not employees), they control how/when they work, and you're not treating them like employees. See our guide on classifying independent contractors.

How do we set up international contractors?

International contractors complete a W-8BEN form (simple, one-page form declaring they pay taxes in their home country). We don't withhold US taxes for them. They handle their own taxes in their country of residence. Most countries have tax treaties with the US, making this straightforward. See our key information for contractors.

What about Double Taxation Agreements (DTA)?

The W-8BEN handles the US side of DTAs. Your contractors resolve any DTA matters with their home country. We can provide limited guidance if they're working from a country without a US tax treaty.

How do US contractors handle taxes?

US-based contractors receive a 1099 form for their tax filing. They're responsible for their own self-employment taxes and quarterly estimated tax payments.

What if a contractor has dual citizenship or lives in multiple countries?

They need to decide which country they're residing in for tax purposes. As a general rule, you are taxed in the country you do the work from. We can help work through specific situations.

US citizens typically receive a 1099 regardless of where they live, since the US taxes worldwide income.

Can we pay staff through local partners in our operating country?

Yes. This works similarly to using independent contractors. The local partner organization handles the employment relationship, and we pay them as a vendor.

Employees & EOR Services

When should we use employees instead of contractors?

Use employees when the role requires direct supervision, set hours, or control over how work is performed. If someone needs employee benefits or your work relationship doesn't fit the contractor model, hire them as an employee. We use Deel as our Employer of Record (EOR).

What does EOR service cost?

Deel charges $450-$500 per employee per month, depending on the country. This covers payroll processing, benefits administration, and compliance management.

What benefits do employees receive?

It varies by location. US employees receive health insurance (100% covered by the Project) and 401(k) with 2% contribution. Other countries have different benefit packages based on local requirements and Deel's offerings in that region.

Fiscal Sponsorship Structure

What is Model A fiscal sponsorship?

Model A means your project operates as an internal program of Anti Entropy. You're not a separate legal entity—you're part of ours. This gives you 501(c)(3) status immediately while you build toward independence. We always use Model A. See more about fiscal sponsorship models.

Can we change our project name after we've started?

Yes, but it requires some administrative work. We'll need to update your fiscal sponsorship agreement, bank account details, donation pages, and tax receipt templates. If you've already received donations or grants under the original name, we'll document the name change for continuity. It's best to finalize your name early, but we understand brands evolve—especially during pilot phases.

How is a SparkWell project represented to donors?

Your project has its own identity and brand while operating under Anti Entropy's legal umbrella. Donors see your project name prominently—on donation pages and tax receipts. Grant agreements are made to Anti Entropy with funds designated for your project (e.g., "For general operating expenses of [Your Project Name]"). Tax receipts say "thank you for supporting [Your Project Name]" and donation pages note "Hosted by Anti Entropy." Your project is the focus, with Anti Entropy's role as fiscal sponsor clearly disclosed.

We use Every.org for donation pages, you can see examples of those pages here.

What do tax receipts look like?

Tax receipts come from Anti Entropy and say "Thank you for supporting [Your Project Name]." Donation pages show "Hosted by Anti Entropy" at the bottom.

What disclosure language do we need on our website?

You need to make clear that you're a fiscally sponsored project, not your own legal entity. Never represent yourself as Anti Entropy. See our company information page for standard language.

Insurance & Risk Management

What insurance does Anti Entropy provide?

We carry Directors & Officers (D&O) insurance that covers Anti Entropy's board and operations.

What insurance do Projects need to obtain?

Each Project needs its own insurance based on your specific work and region. Insurance is work-specific and regionally-specific, so it must be underwritten for your activities in your operating location. This typically includes general liability and any specialized coverage your work requires.

Are Project Leads personally covered?

Not beyond employment-related coverage through EOR services. You're responsible for obtaining appropriate insurance for your project's activities and your team.

Program Operations

How long does onboarding take?

About one week from signed sponsorship agreement to operational bank account. Once we agree you're a good fit and sign the fiscal sponsorship agreement, we can open your Mercury account same or next day.

How do we choose between 6, 12, or 24-month tracks?

It depends on how quickly you can complete the program milestones. Most projects take around 18: a few months for research/planning, 6-9 months piloting, 2-3 months adjusting, 1-3 months fundraising, 2-3 months spinning off. The pilot phase and post-pilot fundraising are typically the biggest factors.

Some projects move faster. This usually happens when they project has a clear and tested theory of change or program and they have future funding lined up.

What are the monthly meeting requirements?

At least one Project Lead should attend the monthly check-in. It's okay to miss occasionally, but not regularly. These meetings cover progress, challenges, resource needs, strategic guidance, and milestone tracking.

What does the graduation process look like?

Timeline and process depend on what type of entity you're spinning out to and where. US 501(c)(3) transitions take a few weeks once the new legal entity is established; we grant all assets (tangible and intangible) to your new entity. International or non-501(c)(3) entities take longer due to additional due diligence and different compliance requirements. The longest part is setting up your new entity; transferring assets is relatively quick once that's established.

What happens to intellectual property we create during the sponsorship?

Essentially, we hold these assets in trust for you until you're ready to operate independently, then grant everything to your new organization. The mechanisms for this are established in the fiscal sponsorhip agreement.

All intellectual property created during your sponsorship, including software, tools, content, branding, and other materials, etc. is legally owned by Anti Entropy while you're a sponsored project. When you graduate and spin out, all IP transfers to your new independent entity as part of the asset transfer process.

Mentorship & Support

What does SparkWell's operational support include?

Monthly check-ins with your Project Liaison, guidance following the program milestones, help with operational/infrastructure questions, connections to external resources and advisors, and access to the Resource Portal. We also offer optional paid advisory sessions for specialized needs (fundraising, cybersecurity, hiring).

Do you help us find local vendors like accountants or lawyers?

We provide guidance, vetting questions, and due diligence support, but you select and manage these relationships. Since these vendors will continue working with you after graduation, they need to be people you're comfortable with.

What's available in the Resource Portal?

The Resource Portal contains operational guides, templates, policies, and how-to articles covering nonprofit operations. This dedicated SparkWell section has program-specific resources.

Project Autonomy

What decisions can we make independently?

You have full autonomy over day-to-day operations, program design, strategic decisions within your original mission scope, fundraising strategy, routine budget decisions, staff hiring (after due diligence approval), team management, partnerships, communications, and research priorities. See our full breakdown of Project responsibilities.

When do we need SparkWell consultation?

Consult us on: strategic pivots beyond your original mission, large expenditures (>$25,000 or >10% of total project funding, whichever is higher), legal commitments or formal partnerships, significant operational challenges, and anything that might impact Anti Entropy's 501(c)(3) status.

What if we disagree about a decision?

Direct discussion with your Project Liaison first. If unresolved, escalate to Jeffrey Poche (if not already your Liaison), then Anti Entropy Board if needed.

Grants & Sub-granting

Can we make sub-grants to other organizations?

Yes, if they meet IRS charitable requirements. Non-charitable grantees require expenditure responsibility procedures to ensure funds are used for charitable purposes and properly tracked.

How do grant agreements work?

We execute grant agreements as Anti Entropy, with funds designated for your project. You manage funder relationships and reporting requirements. We handle the financial compliance and processing.

Nonprofit Discounts

Can we access nonprofit discounts like Google Workspace?

Yes, though success varies by program. Persistence helps; keep trying if initially rejected. Programs change their rules and requirements frequently.

What other nonprofit discounts are available?

See our Resource Portal article on nonprofit discounts and memberships for common programs and guidance.