What Is Fiscal Sponsorship?
Fiscal sponsorship is a relationship between an organization that has tax‐exempt status (the fiscal sponsor) and one that does not (the sponsored venture, project, or nonprofit). One of the most common uses of fiscal sponsorship is to enable the sponsored venture, project, or nonprofit to apply for grants and solicit tax‐deductible contributions through the fiscal sponsor.
This relationship:
- Allows new ventures, projects, and nonprofits to access funding during the early stages of their existence.
- Provides an opportunity to test a program before applying for tax‐exempt status.
- Provides administrative support that takes the burden off of the sponsored venture, project, or nonprofit.