Fiscal Sponsorships
Fiscal Sponsorships
A fiscal sponsorship is like a nonprofit-in-a-box. It provides a donor with a way to operate charitable activities without the hassle of creating their own 501(c)(3). Once a fiscal sponsorship is established, it then serves as a broader fundraising platform.
A fiscal sponsorship is like a nonprofit-in-a-box. It provides a donor with a way to operate charitable activities without the hassle of creating their own 501(c)(3). Once a fiscal sponsorship is established, it then serves as a broader fundraising platform.
A fiscal sponsorship is like a nonprofit-in-a-box. It provides a donor with a way to operate charitable activities without the hassle of creating their own 501(c)(3). Once a fiscal sponsorship is established, it then serves as a broader fundraising platform.
Four Common Fiscal Sponsorship Uses
Four Common Fiscal Sponsorship Uses
Impact Start-Up
As a new start-up works on becoming a 501(c)(3) nonprofit, the organization uses a fiscal sponsorship as a way to kickstart their efforts. These organizations leverage immediate benefits from the legal and tax exempt status of their fiscal sponsor. The organization can raise charitable donations while continuing to refine their efforts. Once the new organization has established its impact and network of funders, it will be in a position to graduate from the fiscal sponsorship and secure its own 501(c)(3) nonprofit status.
Charities Based Outside the United States
Charities based outside the U.S. often enlist the support of a fiscal sponsor to allow them to offer U.S. donors the benefit of a tax deduction. Otherwise, gifts made to charities outside the U.S. without a 501(c)(3) designation are not tax deductible.
Short-Term Projects
Some social impact efforts are designed to be short-term, such as a one-day event or a program intended to last only a few years. In either case, creating a stand-alone 501(c)(3) organization for a limited program would not be time- or cost-efficient.
In other situations, new social impact ventures may need time to consider their appropriate legal status: nonprofit, for-profit, or a hybrid of both. A fiscal sponsorship offers these organizations the time and space to determine whether a 501(c)(3) nonprofit status is right for them.
Impact Start-Up
As a new start-up works on becoming a 501(c)(3) nonprofit, the organization uses a fiscal sponsorship as a way to kickstart their efforts. These organizations leverage immediate benefits from the legal and tax exempt status of their fiscal sponsor. The organization can raise charitable donations while continuing to refine their efforts. Once the new organization has established its impact and network of funders, it will be in a position to graduate from the fiscal sponsorship and secure its own 501(c)(3) nonprofit status.
For-Profit Social Impact Organizations
Social impact organizations can be legally structured as LLCs or other for-profit corporate structures. These organizations can use a fiscal sponsorship to accept tax-deductible donations, rather than setting up a separate 501(c)(3).
Charities Based Outside the United States
Charities based outside the U.S. often enlist the support of a fiscal sponsor to allow them to offer U.S. donors the benefit of a tax deduction. Otherwise, gifts made to charities outside the U.S. without a 501(c)(3) designation are not tax deductible.
Short-Term Projects
Some social impact efforts are designed to be short-term, such as a one-day event or a program intended to last only a few years. In either case, creating a stand-alone 501(c)(3) organization for a limited program would not be time- or cost-efficient.
In other situations, new social impact ventures may need time to consider their appropriate legal status: nonprofit, for-profit, or a hybrid of both. A fiscal sponsorship offers these organizations the time and space to determine whether a 501(c)(3) nonprofit status is right for them.
For-Profit Social Impact Organizations
Social impact organizations can be legally structured as LLCs or other for-profit corporate structures. These organizations can use a fiscal sponsorship to accept tax-deductible donations, rather than setting up a separate 501(c)(3).
Is Your Program a Match?
Before receiving sponsorship, the social impact program or entity goes through our due diligence process to ensure the program matches our charitable mission. Periodic reports and regular expenditure responsibility reviews ensure that the program or entity is handling charitable funds appropriately and that the program or entity continues to meet our charitable intent.
Sponsored Program
Is Your Program a Match?
Before receiving sponsorship, the social impact program or entity goes through our due diligence process to ensure the program matches our charitable mission. Periodic reports and regular expenditure responsibility reviews ensure that the program or entity is handling charitable funds appropriately and that the program or entity continues to meet
our charitable intent.
Is Your Program a Match?
Before receiving sponsorship, the social impact program or entity goes through our due diligence process to ensure the program matches our charitable mission. Periodic reports and regular expenditure responsibility reviews ensure that the program or entity is handling charitable funds appropriately and that the program or entity continues to meet our charitable intent.