What is Fiscal Sponsorship?

It’s an arrangement where a 501 (c) (3) organization supports groups or individuals engaged in activities that further its own charitable purpose.  For example, a church might be willing to be a fiscal sponsor for a youth community service project. This relationship helps the church because it fulfills its mission for young people’s development.

Fiscal Sponsors:

• Allow the sponsored project to receive charitable, tax-exempt funds.
• Are legally and financially responsible for any project that they sponsor.

To locate a fiscal sponsor for your program or project you may want to start by looking for nonprofit organizations whose mission is similar to the project you are proposing. Sometimes community foundations and United Ways are willing to act as the fiscal sponsor for a new organization or initiative that has a promising project and needs to demonstrate its benefit to the community.