Cerritos council authorizes pursuit of nonprofit or fiscal sponsorship to boost CCPA fundraising

The Cerritos City Council voted unanimously to pursue a nonprofit relationship or fiscal sponsorship to broaden fundraising for the Cerritos Center for the Performing Arts (CCPA).

Consultants presented two models: creating a standalone 501(c)(3) nonprofit (which can take one to two years to set up and carries pre‑launch administrative costs) or using an established nonprofit as a fiscal sponsor (a quicker option, generally available within 1–2 months, with ongoing fees commonly 5–15% of funds raised). Consultants said fiscal sponsorships allow an established nonprofit to accept funds on behalf of the CCPA, provide accounting and compliance and reduce the need to hire new fundraising staff immediately, while still allowing the CCPA to maintain its public identity.

Susan DeLand of DeLand Consulting and Michelle Beyerly of The Nonprofit Partnership told the council that performing arts centers typically receive around 30% of operating revenue from contributions and that CCPA's donor income had averaged about 5.17% of revenue over the prior decade. Both speakers recommended fiscal sponsorship as the most immediate, low‑risk approach to expand fundraising while staff builds a longer‑term plan.

Council direction and next steps Council approved the recommendation 5–0. Staff were directed to identify prospective fiscal sponsor organizations, negotiate terms and return with a recommended sponsor and draft agreement. The council also asked for estimates of expected net fundraising by year (after sponsor fees) and proposals for donor/membership tiers, corporate sponsorship packages and stewardship plans.

Ending Council members said enabling more donations to the CCPA is a priority to reduce city subsidy and to expand programming; staff will return with recommended sponsors and terms for council approval.