Fiscal Sponsorship Info Guide

Fiscal Host = Fiscal Sponsor

What is Fiscal Sponsorship/Hosting?

"A fiscal sponsor is a nonprofit organization that provides fiduciary oversight, financial management, and other administrative services to help build the capacity of charitable projects." -Trust for Conservation Innovation: Fiscal Sponsorship: a 360 Degree Perspective

Why choose to be fiscally hosted/Who needs a fiscal host?

It can take years for a group to get 501(c)(3) non-profit status. Fiscal hosts are especially helpful to newly formed nonprofit groups-both large and small.

We act as a legal entity for your group-organizing the back-end of your fundraising efforts.

We offer "Comprehensive Fiscal Hosting" meaning:

  1. Project becomes an internal program of the sponsor

  2. Project has no separate legal existence

  3. Project is not responsible for its own legal or tax filings

It’s fast and easy to apply to be hosted by our foundation. Once your group is approved, you can begin collecting funds immediately

What is a 501(c)(3)?

“Section 501(c)(3) is the portion of the US Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations. It is regulated and administered by the US Department of Treasury through the Internal Revenue Service. There are other 501(c) organizations, indicated by categories 501(c)(1) – 501(c)(29). “

“Being "501(c)(3)" means that a particular nonprofit organization has been approved by the Internal Revenue Service as a tax-exempt, charitable organization. "Charitable" is broadly defined as being established for purposes that are religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children.” - https://www.501c3.org/what-is-a-501c3/

  • Simply Put:

    • A 501(c) is a nonprofit organization.

      • '3’ means it is charitable. This means it receives income tax exemption, and its donors may take a tax deduction for their donations

How it works:

  1. Donations are made to our 501(c)(3)

    • Tax-exempt status applies

  2. We make a “grant” to your group/project

  3. We send donors their receipts, disburse funds/reimburse expenses after your approval, send out tax forms to independent contractors as applicable

  4. You have complete access to collect, spend, manage your money on our platform

  • We are a tax-exempt 501(c)(3) public charity non-profit meaning:

    • You will have special access to grant opportunities - wider range of funding opportunities

    • Donations to your fund are tax-deductible

    • Groups hosted by us are aligned with our charitable mission

According to our terms and conditions:

1. Criteria: In furtherance of Sponsor’s Mission, it promotes projects in the United States with the charitable purposes outlined below. As such, Sponsee has provided evidence and Sponsor has confirmed that Sponsee’s Project has met one (1) or more of the following criteria for Sponsor’s fiscal sponsorship of the Project:

  • Increasing access to educational resources and training: With the advance of technology and the movement towards a society where people work together to enhance and develop the future, there has been an increase in the number of organizations and groups that are coming together to promote education.

  • Creating a positive social impact: Sponsor’s social impact purpose is aimed at finding ways to (i) eliminate prejudice and discrimination; (ii) combat community deterioration; (iii) decrease juvenile delinquency; (iv) serve the less fortunate or distressed; (v) serve to prevent animal or child cruelty; or (vi) create a positive impact on society.

  • Developing tools to improve civic participation within cities or communities: Sponsor sponsors projects aimed at fostering civic participation, democratic debate and rebuilding community ties and strengths.