Fiscal Sponsor

It is a formal arrangement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. This alternative to starting your own nonprofit allows you to seek grants and solicit tax-deductible donations under your sponsor’s exempt status.

What does a fiscal sponsor do for my project?

• Distribute payments of authorized expense invoices and requests for reimbursements in a timely manner.
• Reviews grant proposals and advises on suggested revisions prior to submission.
• Receipt and deposit of tax-deductible donations and grants and provides reports on them.
• Acknowledgment letters for qualified tax-deductible donations.
• Retention of all original documents submitted for payment.
• Submission of financial statements quarterly and upon completion of the project.
• Reporting of federal, state and local tax returns.
• Convenes your group of volunteer fundraisers for discussion and agreement on ways/means of fundraising and dispersal of collected funds.
• Gives a limited amount of hours of pro-bono consulting.

What does the project agree to do?

• Provide original invoices and requests for reimbursement.
• Notify the fiscal sponsor prior to any fundraising activities.
• Provide the fiscal sponsor with timely progress reports as requested about progress towards accomplishing the project.
• Include fiscal sponsor logo and name in advertising, press releases, and publication of any printed materials.
• Pay a percentage of donations and/or grants accepted for fiscal sponsor services provided.