Fiscal sponsorships are an option many in the non-profit sector aren’t aware of. There are many times when this arrangement can make sense. Whether it’s splitting your department off from a larger organization, looking to accept funding without gaining full tax-exempt status or a small group who can’t provide the administration support needed becoming a fiscal sponsee may be right for you.
For an in-depth analysis, including pros and cons, checkout our blog post on fiscal sponsorship.
As a 501c3 ourselves Charitable Allies (“Organization”) is able to provide fiscal sponsorship support, under certain circumstances. We can provide support in the following ways:
Basic Fiscal Support
- The Organization will receive grant funds under the Organization’s nonprofit status and transfer the funds directly to the Sponsored Organization while the application for tax-exempt status is in process with the IRS. During this time, the Sponsored Organization can receive tax-exempt donations, but some funders will only give money to organizations with their tax exemption complete.
- The Organization will receive and process all donations and provide donation letters, track funding, etc.
- The Organization accepts all liability for receipt and distribution of tax-deductible/preferred funds. The Organization is thus the grant recipient from a tax perspective and it is for the benefit of the Sponsored Organization’s program.
- The Organization will submit any grant or other donation reports necessary for funders under the Organization’s letterhead. The Sponsored Organization would prepare the reports; the Organization would do a review to ensure compliance.
- The Organization charges the Sponsored Organization 2% of the donations received for this service
To review our policy regarding these engagements download the pdf below.