What is fiscal sponsorship? How do I find a fiscal sponsor?
Fiscal sponsorship 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.
Webinar Fiscal Sponsorship for Artists and Arts Organizations
During this one-hour webinar, Dianne Debicella, program director for fiscal sponsorship at Fractured Atlas, discusses the fiscal sponsorship arrangement under which a charitable project without 501(c)(3) status might benefit from the tax-exempt status and administrative support of a sponsoring organization.
Video What You Need to Know About Fiscal Sponsorships
During this one-hour video, Rachel Epps Spears, Executive Director, Pro Bono Partnership of Atlanta, shares the pros and cons of having a fiscal sponsor and what organizations can do to avoid potential problems when entering into a fiscal sponsorship agreement.
Since most grantmakers give to organizations, not individuals, fiscal sponsorship may help you qualify for more funding opportunities. Thus, you may be able to fund and start your project sooner. Meanwhile, you can work on getting your own nonprofit status if that is your ultimate goal. To learn more about fiscal sponsorship, please see:
- Grantseeking Basics for Individuals in the Arts, our free recorded webinar.
- Where can I find examples of policies, procedures, and guidelines for fiscal sponsorship agreements? links to guidelines of real fiscal sponsorship programs so you can see what is involved.
- Fiscalsponsorship.com, an authoritative site by Gregory L. Colvin, nonprofit attorney and author of Fiscal Sponsorship: 6 Ways to Do It Right. This site includes highlights from the book, sample agreements, and additional resources.
How to Find a Fiscal Sponsor
- Look for nonprofits whose missions are similar to yours. You might start with your current affiliations. Make a list of the professional societies, educational associations and institutions, religious organizations, social and recreational clubs, and other groups with which you are already associated, including nonprofit employers.
- The Fiscal Sponsor Directory allows you to search by state, service category, or keyword for nonprofit fiscal sponsors. Profiles include eligibility requirements, fees, services, and types of projects supported. The site also provides statistics and resources on fiscal sponsorship.
- Foundation Grants to Individuals Online is available by subscription or for free at our locations. Try a keyword search for "Fiscal Sponsor."
When approaching your prospects, be ready to give a verbal or written proposal that explains:
- Your project: Why it's needed, and its goals, objectives, method, evaluation, staffing, and budget. This is similar to a grant proposal. To learn more about writing one, please see our proposal writing resources.
- How it advances the nonprofit's mission.
- Other ways the nonprofit can benefit from being associated with your project.
Topic(s) Collaboration Starting a Nonprofit Fiscal Sponsorship
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American Bar Association
Alternatives to Forming a Charitable Nonprofit
Article discusses using an existing nonprofit, fiscal sponsorship, and donor-advised fund as options to forming a separate charity. By Gene Takagi and Emily Chan of the Nonprofit Law Blog.
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National Network of Fiscal Sponsors (NNFS)
Best Practices for Fiscal Sponsorship
"The purpose of these guidelines is to raise awareness and broaden the understanding of fiscal sponsorship and to promulgate standards of best practice for the field in order to improve the practice of fiscal sponsorship and increase its value to society."
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Adler & Colvin [PDF]
Comparison of Starting a New 501(c)(3) Organization with Using a Fiscal Sponsor (Model A)
This table describes the pros and cons of setting up your own nonprofit versus fiscal sponsorship. Published April 2008.
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NEO Philanthropy Inc.
Fiscal Sponsor
Formerly called Public Interest Projects, NEO offers fiscal sponsorship to nonprofits that support its mission "to increase funding for cutting-edge strategies that advance social change."
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Hawai'i Community Foundation
Fiscal Sponsor Agreement Form (PDF)
Clicking here downloads a pdf of a fiscal sponsorship form.
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National Council of Nonprofits
Fiscal Sponsors
Describes fiscal sponsorship and provides many helpful links on the topic.
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Fractured Atlas
Fiscal Sponsorship
Fractured Atlas is the country's largest fiscal sponsor for the arts. It works with thousands of artists and arts organizations nationwide to provide education and support for raising funds.
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Gregory Colvin,Silk,Adler & Colvin [PDF]
Fiscal Sponsorship
Summarizes key points from Colvin's authoritative book on fiscal sponsorship. Presented at Western Conference on Tax Exempt Organizations in Nov. 2006.
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Dancers' Group
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Provides administrative support and guidance to choreographers and dance organizations, working in a variety of disciplines. Eligibility criteria and application information is posted on their website.
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Tides Center
Fiscal Sponsorship Resources
Tides takes a unique approach to fiscal sponsorship. Beyond serving as a conduit of grants, Tides says it provides the organizational and operational support, and the network to help nonprofits grow their impact.
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Nonprofit Law Blog
Fiscal Sponsorship: Six Ways to Do It Wrong
By Gene Takagi, California nonprofit attorney. Published Feb. 20, 2009.
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Foundation Center
Grantseeking Basics for Individuals in the Arts Webinar
Free course geared towards individuals involved in the arts and looking to fund any type of arts-related project. Available live on certain dates, or recorded for anytime access.
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The Field
Founded by artists for artists, The Field is dedicated to providing strategic services to thousands of performing artists and companies in New York City and beyond. Offers fiscal sponsorship.
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Ranier Valley Corps
The Stigma Against Fiscal Sponsorship Needs to End
Provides six reasons why fiscal sponsorship plays a crucial role in helping the nonprofit sector stay efficient, effective and relevant. Among them: testing new ideas; bolstering efficiency; promoting collaboration and helping grassroots organizations, especially those from communities of color.
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Adler & colvin [PDF]
The Use of LLCs in Fiscal Sponsorship - A New Model
Lawyers Steven Chiodini and Gregory L. Colvin discuss a new model, "Model L", in which the fiscal sponsor acts as the sole member of a limited liability company (LLC) from which the sponsored project is conducted. Published May/June 2011.