In a typical fiscal sponsorship relationship, a nonprofit organization confers its 501(c)(3) tax-exempt status to groups that are engaged in activities that serve the host’s mission, typically for a fee. Donations to the social … Fiscal sponsorship is a practice that has evolved as an effective and efficient means of starting new charitable initiatives, delivering public services, and seeding social movements. The term fiscal sponsorship broadly refers to a number of contractual relationships that allow a person, group, or business to advance charitable or other exempt activities with the benefit of the tax-exempt status of a sponsor organization. … As fiscal sponsorship continues to become a more widely used tool for charitable impact, it is important that 501(c)(3) organizations acting as a fiscal sponsor are doing it right. The simplest type of fiscal sponsorship is one where a nonprofit sponsors its own activities. The most widely used models of fiscal sponsorship for charitable projects are: 1. Board members of sponsoring organizations must fully understand the role the organization is playing, its legal responsibilities and possible risks, and how to be a good steward and partner to its sponsored projects. These relationships are cogently described in Greg Colvin’s seminal book, Fiscal Sponsorship: Six Ways to Do It Right. Fiscal sponsorship refers to the practice of non-profit organizations offering their legal and tax-exempt status to groups—typically projects—engaged in activities related to the sponsoring organization's mission. Since... #2: Independent Contractor Project. It typically involves a fee-based contractual arrangement between a project and an established non-profit. taking on the responsibility of receiving and administering charitable contributions on behalf of the sponsored organization

7 Types of Fiscal Sponsorship & Their Differences #1: Direct Project.



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