Fiscal sponsorship refers to the practice of non-profit organizations offering their legal and tax-exempt status to groups engaged in activities related to the organization’s missions. It typically involves a fee-based contractual arrangement between a project and an established non-profit.
Fiscal sponsorship can enable projects to share a common administrative platform with a larger organization, thus increasing efficiency. In addition to legal status, sponsors can provide payroll, employee benefits, office space, publicity, fundraising assistance, and training services, sparing projects the necessity of developing these resources and allowing them to focus on programmatic activities.
Projects may seek fiscal sponsorship for various reasons: an anticipated short lifespan, improved access to funding, increased credibility, and low-cost financial and administrative services. Fiscal sponsors can also assist nascent projects in developing the necessary organizational capabilities to eventually spin off as independent non-profits.
- Sponsors are advised to ensure that the activity of sponsoring a particular project is done in furtherance of its own exempted charitable purposes, as sponsors can be exposed to some liability for the actions of any sponsored projects.
- Projects are advised to recognize that projects will be the under the control of their sponsor(s), who may be legally responsible for the operations and activities of the project.
Different Fiscal Sponsorship Models
Direct Project: project belongs to sponsor and is implemented by its employees and volunteers.
Independent Contractor Project: project belongs to sponsor but is conducted by separate entity under contract.
Pre-Approved Grant Project: project applies to sponsor for one or a series of grants, sponsor funds the project only to the extent that money is received from donors.
If you are interested in fiscal sponsorship with Dusty Visions, please complete the Fiscal Sponsorship Request Form
For more information or to submit additional materials:
fiscalsponsorship (at) dustyvisions.org