Open Letter to Fusion Partnerships Board of Directors
Closure Announcement from Fusion Board of Directors
February 10, 2025 on Instagram
February 25, 2025
Fusion Partnerships
1601 Guilford Ave 2 South, Baltimore, MD 21202
Subject: Urgent Concerns Regarding the Handling of Fusion Fiscal Sponsorship Closure
Dear Members of the Fusion Board of Directors,
We are writing to express our deep disappointment with the manner in which the closure of Fusion Fiscal Sponsorship is being handled. The decisions and actions taken—or lack thereof—have placed the programs and funding of over 100 partners, including Fight Blight Bmore, at significant risk. Specifically, we take issue with the following failures in the closure process:
Short Notice: The abrupt and insufficient timeline to wind down services has left partners scrambling to secure alternative fiscal sponsorship or establish independent structures, jeopardizing critical community programs.
Failure to Identify and Secure Transition Options: Beyond providing a list of possible fiscal sponsors, there has been no evident effort to connect partners with aligned fiscal sponsors, negotiate reduced or waived transfer fees, or provide guidance in establishing standalone nonprofit organizations.
Lack of Transition Funding Support: Fusion has not offered any form of tie-off or transition funding to assist partners in this unexpected and difficult transition.
Poor Communication: The closure process has been communicated inadequately, leaving partners in uncertainty and without the necessary details to make informed decisions about their futures. And, the dismissive and defensive responses to partners’ legitimate concerns and questions by some Fusion staff have only exacerbated the disruption and distress caused by this poorly managed transition.
The mismanagement of this process has placed Fight Blight Bmore in a precarious position. Earlier this year we were denied the opportunity to have a completed grant application reviewed by a funder because Fusion is our fiscal sponsor and today there is $75,000 in awarded grant funds in limbo due to Fusion’s failure to ensure a responsible transition. This financial uncertainty threatens the continuity of our work and the communities we serve.
Given these serious concerns, we formally request that the Fusion Board of Directors:
Provide written proof within 48 hours of receiving this letter that all partner funds, including those belonging to Fight Blight Bmore, are appropriately held in the designated bank account and remain secure.
Issue a formal, written apology to all partners for the lack of transparency, poor communication, and inadequate support offered throughout this transition.
The cash flow problems within Fusion’s fiscal sponsorship program should have been evident to both the Board and Fusion’s leadership following the 2023 financial audit. Instead of addressing these pertinent issues transparently, Fusion operated in a manner that signaled continuity of operations - announcing training on partner processes scheduled for late February. Yet, based on statements made during the Partner Meeting on February 13, 2025, it appears no substantive steps were taken to address the issue with cash flows and operational expenses. As a result of the board and leadership's failure to resolve the issues, partners are faced with this sudden closure.The lack of foresight and accountability has put critical community programs at risk.
Fiscal sponsorship relationships inherently have an unbalanced power dynamic in favor of the sponsor, in the actions surrounding this closure Fusion has demonstrated this fact. Further, it has made partners vulnerable to engaging with future sponsors that are not values aligned at a minimum or predatory at a maximum. We urge the Board to take immediate corrective action and provide the transparency and support that should have been in place from the beginning of this process.
Sincerely,
Nneka Nnamdi
Founder and Chief Operating Officer
Fight Blight Bmore