Fiscal sponsorship is an activity by which a public charity, tax-exempt under Section 501(c)3 of the Internal Revenue Code, provides financial and programmatic oversight of unincorporated nonprofit projects, this allows those projects to receive grants and tax-exempt donations from government, foundations, and individuals.
Fiscal sponsorship is a mechanism that can be used to support innovation in the nonprofit sector. Fiscal sponsors simultaneously enable the movement of money from funders to projects, ideas and organizations, while at the same time reducing the funding necessary for administration and infrastructure investment. Fiscal sponsors give community leaders an effective way to promote change, test a theory, or pilot models of intervention without incurring the legal costs of incorporation or the full staffing costs that can burden an emerging initiative. The result is a platform that strengthens collaboration, efficiencies and brings new ideas to the market of services.
We sponsor emerging charitable ventures in our region.
New projects are expected to contribute a minimum of $10,000 to open an account, either in hand or committed.
There is no account minimum, however projects utilizing W2 employees must maintain the equivalent of three months of salary for each W2 employee.
CVOC charges a fee for services based on a percentage of deposited funds to your account. Please inquire about our fee schedule.
Yes, CVOC charges $100 per month for fiscal accounting services.
CVOC provides Model A and Model C fiscal sponsorship.
Model A: Direct Project. Project belongs to CVOC and is implemented by its employees and project volunteers.
Model C: Pre Approved Grant Relationship. The project applies to CVOC for one or a series of grants and CVOC funds project only to extent that money is received from donors. Used by non 501(c)(3) project in order to raise tax-deductible support from donors, private foundations or government grants.
CVOC establishes separate bank accounts for each project sponsored.