If you are…
If you’re looking to apply for tax exempt status, or you’re waiting to hear back from the IRS about your tax exempt status, fiscal sponsorship can be a great option so you can start fundraising while you wait. Fiscal Sponsorship allows many fledgling nonprofit organizations to fundraise from large donors, corporations, and grant providers who require 501c3 status to apply.
If your charitable program is not quite ready to branch off into a full blown nonprofit organization, fiscal sponsorship can allow you to raise money for your charitable purpose without all the responsibilities like annual filings and 990s. We’ve had several charitable programs, like one-time events or art projects find success with this model of fiscal sponsorship.
If your 501c3 status has been revoked by the IRS, but you’d still like to fundraise while you decide your next steps, fiscal sponsorship can help! In this situation, we’d also recommend looking into your options to get your nonprofit status reinstated.
Fiscal sponsorship can give you the ability to accept tax-deductible donations and apply for grants without 501c3 status. We act as a fiscal sponsor for many fledgling charitable programs and organizations, from arts organizations to educational nonprofits. Keep reading for more information about our pricing model and the steps to get started, or learn more about the concept of fiscal sponsorship here. Fiscal Sponsorship Allies accomplishes this by allowing eligible organizations to apply for grants and accept donations under our 501c3 status and EIN. With this formal arrangement, we receive and process all donations and provide donation acknowledgements to donors so you don’t have to.
How does it work?
- Your donors can donate to your organization through your custom donation page online via credit card or bank account. Major donors, companies, and grant providers can also donate via bank transfer, check, or stock donations. If you need an EIN, determination letter, 990, etc. to apply for grants, we provide you with Fiscal Sponsorship Allies’ documents to submit.
- We send donation acknowledgements to your donors. You’ll get a copy of the donation acknowledgements each week so you can see who donated to your organization that week.
- Once a month, we disburse the funds to your organization’s bank account once we’ve processed them. We also send you a donor report that includes information about your donors.
*In any month that your organization brings in less than $1000 in donations, there is a $20 charge to pay for the cost of us maintaining your donation page and fiscal sponsorship overall.
What is included?
All fiscal sponsorships include:
- ability to accept donations online via custom donation page
- donation acknowledgements that are automatically sent to your donors
- ability to accept grants, ACH donations, & stock donations
- ability to accept paper checks of $250 or more
Premium Fiscal Sponsorships also include:
- premium donation page with additional features like donation thermometer, video, and photos
- a donation widget that can be placed directly on your nonprofit’s website
- a text-to-donate option
Fiscal Sponsorship does require having a legal entity created on a state level. In our fiscal sponsorship+ options, we’ll help create the entity for you with your state of choice!
Three Steps to Start Fundraising
Get started by applying for fiscal sponsorship here. We’ll send you detailed information about our fiscal sponsorship program for you to review. Once you’ve reviewed it, you can sign the agreement and pay the setup fee when you’re ready to get started.
Next, we’ll reach out to you to create your custom donation page. If you’ve selected a premium fiscal sponsorship, we’ll also reach out about creating your donation widget and text-to-give options. Our team member will set up your donation options within 1 business day.
Once your donation page is set up, you can start fundraising legally in all 50 states! Many fiscal sponsees use their sponsorship to apply for grants or corporate funding as well. We’ll send donation acknowledgements to all your donors, and you’ll receive a donation report each month.