Boston Ujima Project, Inc. (BUP, Inc.) has been engaged in reshaping economic power, supporting a new model that prioritizes community well-being over profit. One of their initiatives includes the Ujima Fund -the first democratically governed investment fund in the U.S. designed by and for working-class communities of color—have set new standards for community-led economic development. Other initiatives include  the Ujima Good Business Alliance, which supports mission-driven local businesses, and the Assembly of Black Possibilities, a national gathering of solidarity economy leaders. In addition to these initiatives, BUP, Inc., Inc.’s arts, culture, and community-building programming continue to uplift and empower historically marginalized communities.

As BUP, Inc.’s impact grew, so did their need for structural independence. To scale its work effectively, the organization embarked on a major transition from a Model A fiscal sponsorship to become a fully independent 501(c)(3) nonprofit.

The Challenge

Initially, BUP, Inc. operated under a Model A fiscal sponsorship, meaning that all financial operations and agreements—whether related to the Ujima Fund, grants, or investments—were legally administered and held by its fiscal sponsor. With its official transition set for July 1, 2024, BUP, Inc. faced a large undertaking of achieving 501(c)(3) designation for their newly formed entity, and navigating the transfer of assets and liabilities to their independent entity.  This required securing permissions from and providing notifications to multiple stakeholders, including note holders, grant makers, and investees.

Beyond legal and contractual shifts, BUP, Inc. also needed to build new financial and operational infrastructure. This meant setting up systems to house financial records, banking systems, an HR information system (HRIS), bill payment processes, and an expense management platform. Given the numerous moving parts of this transition, BUP, Inc. sought a trusted partner with the right expertise to oversee and manage tasks, ensuring nothing was overlooked during the fiscal spin-off.

Value-Added Achievement

Cultivated Accounting played a key  role in BUP, Inc.’s successful transition, acting as both a financial project manager and a key advisor throughout the process. Our team kept things moving - tracking progress, facilitating coordination, and streamlining efforts to ensure BUP, Inc. successfully transitioned to a 501(c)(3) by July 1. We also continued to  provide consistent support during its inaugural year.

As part of this transition, we:

• Partnered with key stakeholders, including legal counsel, the fiscal sponsor, and nonprofit transition consultants, to ensure compliance and seamless execution.

• Consulted  on the development of BUP, Inc.’s financial system, participating in the Chart of Accounts (COA) design and structuring other financial aspects.

• Advised on an expense management platform to optimize expense tracking and payments.

• Provided strategic guidance on:

1. Document management and financial organization, ensuring efficient record-keeping.

2. Expense policies and procedures, improving financial accountability.

3. A structured budgeting template, enhancing clarity and collaboration in financial planning.

Cultivated Accounting continues to support BUP, Inc. by managing weekly accounting transition meetings, guiding financial operations, and monitoring a smooth transfer of assets and liabilities from the fiscal sponsor as agreements are legally assigned to BUP, Inc.

The Outcome

With a strong commitment to having a solid foundation in place, BUP, Inc. successfully transitioned from fiscal sponsorship to an independent nonprofit. Now, as an autonomous nonprofit, the organization has the financial systems, operational processes, and strategic support needed to sustain and expand its impact. Beyond just a financial partner, Cultivated Accounting continues to serve as a trusted resource and advocate for BUP, Inc., providing strategic guidance and hands-on support as it continues to establish itself. From streamlining financial processes to ensuring compliance and long-term sustainability, we remain actively engaged in guiding BUP, Inc. navigate the challenges of its inaugural year as an independent entity.

This case study reflects our commitment at Cultivated Accounting - to building financial resilience and independence for mission-driven organizations.