Introduction to The Fiscal Sponsorship Program

What is a Fiscal Sponsorship?

A Fiscal Sponsorship is a legal relationship between a tax-exempt organization (the "Fiscal Sponsor") and another organization (the "sponsored organization"). The Fiscal Sponsor provides its 501(c)3 tax-exempt designation to the sponsored organization, allowing it to receive grants and donations that would not be available otherwise.

Why Start a Fiscal Sponsorship?

1. Nonprofit Status Benefits

By partnering with a reputable Fiscal Sponsor, an organization can benefit from established nonprofit status. This means that donors can make tax-deductible contributions to the organization, increasing fundraising potential.

2. Cost Savings

Starting a nonprofit organization can be time-consuming and expensive due to filing fees and legal requirements. By joining an existing Fiscal Sponsorship program instead of establishing an independent nonprofit entity from scratch, start-up organizations can save time and money on startup costs.

3. Enhanced Credibility

Being associated with an established 501(c)3 nonprofit through a Fiscal Sponsorship arrangement brings credibility to start-up organizations.

4. Focus on Your Mission

By broadening fundraising opportunities through a Fiscal Sponsorship, organizations can dedicate more time and resources to their core mission and programmatic activities. This allows start-up organizations to maximize their impact more quickly.

How to Start a Fiscal Sponsorship?

To start a Fiscal Sponsorship, follow these general steps:

1. Research: Identify potential Fiscal Sponsors that align with your organization's mission and values.

2. Contact: Contact selected Fiscal Sponsors to discuss your interest in establishing a partnership.

3. Proposal: Prepare a proposal outlining the goals, objectives, and expected outcomes of the organization.

4. Agreement: Once both parties agree on the terms, sign an agreement detailing the responsibilities of each party involved.

5. Establish Systems: Set up systems, as per the agreed terms.

Remember that specific details may vary depending on the fiscal Sponsor's requirements and guidelines.