What is Fiscal Sponsorship?
You should spend time changing the world, not filing paperwork. There is a passionate community of philanthropic individuals, charitable foundations, and government institutions devoted to funding social innovation. Most small groups and companies lack the 501(c)(3) tax status that makes them eligible to apply for grants and incentivizes individual gifts. The day-to-day business of administering a tax-exempt organization leaves scant room for meaningful action. With fiscal sponsorship, you can solicit tax-deductible donations and apply for grants without going through the onerous process of launching a 501(c)(3). Our program is open and accessible nationwide and in every discipline. Our job is to give you the tools you need to raise the money to make it happen.
The National Network of Fiscal Sponsors describes Fiscal Sponsorship as follows:
Fiscal sponsorship has evolved as an effective and efficient mode of starting new nonprofits, seeding social movements, and delivering public services. Fiscal sponsorship generally entails a nonprofit organization (the “fiscal sponsor”) agreeing to provide administrative services and oversight to, and assume some or all of the legal and financial responsibility for, the activities of groups or individuals engaged in work that relates to the fiscal sponsor’s mission.
Fiscal sponsors are tax-exempt, charitable ventures that, according to a recent IRS report “have the ability to receive charitable contributions for specific projects, the infrastructure to ensure compliance with applicable federal and state laws and adequate internal controls to ensure that the funds will be used for the intended charitable purposes.” Simply stated, fiscal sponsors place responsibility for implementing programs in the hands of project leaders while ensuring appropriate fiduciary oversight.
Additional Resources and Reading Materials:
|Fiscal Sponsorship: A 360 Degree Perspective (March 2014)|
|Guidelines for Comprehensive Fiscal Sponsorship|
|Fiscal Sponsorship: A Balanced Overview|
|White Paper: On Comprehensive Fiscal Sponsorship|