Fusion Partnerships, a Baltimore nonprofit that acted as a fiscal sponsor for grassroots organizations, is closing its management services after more than two decades. This leaves numerous local charities without the administrative support and access to tax-exempt status that the fiscal sponsor provided.

Documents reveal that Fusion faced years of financial difficulties, including tax liens, a lawsuit from a former executive director alleging wrongful termination and defamation, and a critical audit of its government funding in 2022. The audit highlighted significant deficiencies, such as a lack of essential payment documentation, payroll inaccuracies, and an inability to demonstrate a thorough bid and contract comparison process.

“Laurie Styron, the CEO and executive director of Charity Watch, said fiscal sponsorships make it difficult to track how money is spent, which becomes especially concerning when taxpayer dollars are involved.”

“’It’s just so tricky because this information is reported in aggregate and the public just can’t see what’s going on with the individual organizations and that really does create a really big transparency and public accountability issue,’ she told Spotlight on Maryland.“

The closure raises concerns about the stability of fiscal sponsors and the transparency of taxpayer dollars, as Fusion received millions in funding from Baltimore City and the Baltimore Children and Youth Fund. Questions remain about the remaining funds and assets, and the impact on the smaller organizations that relied on Fusion’s services.

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