There is a terrific article on fiscal sponsorship written by Melanie Beene, President and CEO of Community Initiatives*, in the Fall 2010 issue of GIAreader (published by Grantmakers in the Arts). In "Fiscal Sponsorship is Maturing as a Field," Beene describes the evolution of the practice of fiscal sponsorship...
FISCAL SPONSORSHIP
Fiscal sponsorship describes a number of varying contractual relationships that have through custom and practice developed between “sponsors” and “projects,” allowing charitable projects to receive deductible contributions. Having a charitable project fiscally sponsored by a sound and reputable fiscal sponsor may be an attractive alternative to starting a nonprofit, especially when an idea is being tested or incubated. There are several ways to properly structure such relationships, and it is important to get it right from the start. There are also a number of traps that can leave a project’s leaders vulnerable to losing typical rights associated with fiscal sponsorship, including the right to transfer the project to another 501(c)(3) entity, and/or losing funds raised for the project’s mission.
Emerging Leaders Program: Center for Volunteer and Nonprofit Leadership
The Emerging Leaders Program (ELP) of the Center for Volunteer and Nonprofit Leadership "addresses the core competencies needed to effectively manage organizations and complex programs as well as the leadership skills one needs to be successful within our quickly changing sector." Last week, Emily Chan and I spoke to...
Fiscal Sponsorship Revisited
On October 1, 2009, I joined two esteemed exempt organization attorneys, Greg Colvin and Jill Dodd, in a panel discussion on fiscal sponsorship for the National Network of Fiscal Sponsors (NNFS) Annual Gathering. This is a fascinating area that holds great promise for philanthropy and social entrepreneurs, but first...
Fiscal Sponsorship: Six Ways to Do It Wrong
Fiscal sponsorship is the term used to describe a set of relationships between (1) an individual or group desiring to run a project that advances a tax-exempt purpose; and (2) a tax-exempt organization that is willing to serve as the project’s fiscal sponsor by conferring upon the project the benefit...
Fiscal Sponsorship Basics
Updated January 25, 2015 Fiscal sponsorship is an increasingly common alternative to starting a nonprofit organization. In its most common forms, it allows a group or individual to create a project that can receive grants and deductible charitable contributions without forming a nonprofit entity and/or obtaining tax-exemption. Accordingly, it’s not surprising to see...