What is fiscal sponsorship?
Fiscal sponsorship allows organizations to operate under the umbrella of an established nonprofit, giving them access to fundraising without the burden of setting up a stand-alone nonprofit entity. This alternative pathway to starting a nonprofit also allows organizations to seek grants and solicit tax-deductible donations under the sponsor’s tax exempt status. Learn more here.
What does fiscal sponsorship not do?
Fiscal sponsors do not provide funding for fiscally sponsored organizations. Organizations are responsible for their own fundraising from individual, foundation, business, and government sources. Although they do not directly provide funding, fiscal sponsors may provide feedback on grant applications and potential funding sources. Learn about the most common types of fiscal sponsors here.
What makes me eligible?
To be eligible for fiscal sponsorship, you must be engaged in work that qualifies as charitable under IRS standards. If you are fiscally sponsored, you do not need to fill out any of this paperwork because you will legally be part of the fiscal sponsor’s 501(c)(3) status. Fiscal sponsorship is an alternative to filing this paperwork. However, your organization’s activities do need to be charitable in nature. Learn more here.
How do I find a fiscal sponsor?
It is important to find a fiscal sponsor that is both knowledgeable and the right fit for your particular organization. There are dedicated fiscal sponsors like C4CS as well as nonprofits that serve as a fiscal sponsor for a select few organizations. You can learn more about how to find the right fiscal sponsor for you here.
Is there a time limit for how long I can be a fiscally sponsored project?
Although some organizations do have a time limit, the length of time an organization may remain under fiscal sponsorship is unlimited under C4CS. Some project organizations go on to form their own 501(c)(3), some projects remain a fiscally sponsored project, and others close after achieving the short-term goal their project was created to achieve. It is up to you!
What are the costs?
C4CS aims to balance simplicity and fairness in covering our costs. We use a cost-sharing model where fiscally sponsored organizations contribute 9% of all revenue. For government and complex funding, the contribution is 15%. Nationally, fiscal sponsorship costs range from 7% to 15%.
Individual organizations cover direct services like HR. For projects with employees, a small fee per employee is charged for payroll, HR compliance, and benefits access. Projects also pay part of their employees' health care costs and employer taxes.
We also charge certain fees, like our annual membership fee of $250, to cover costs such as insurance, audit, and software and pass-through direct fees like stop-check fees or certain legal fees.