“(Fiscal sponsorship is) an arrangement between a 501(c)(3) public charity and a project (that does not have that tax status) in which, typically, the charity receives and expends funds to advance the charitable work of the project while retaining discretion and control over the funds.”
– Eric Gorovitz, associate, Adler & Colvin
“Fiscal sponsors are nonprofits that enable the movement of money from funders to projects, ideas, organizations, and activities. While our models and missions differ, we have common questions and aspirations to ensure responsible use of the tool of fiscal sponsorship. We are committed to raising the understanding of fiscal sponsorship among the public and funders, we share a desire to build best practices, and we enhance the sector by building capacity to advance public benefit.”
– National Network of Fiscal Sponsors
“Calling a charity a ‘fiscal agent’ implies that the project controls the charity. To comply with tax-exempt law, the relationship must be the reverse; the charity must be in the controlling position, and the nonexempt project must act so as to further the charity’s exempt purposes.
Fiscal sponsorship is the more accurate term. It implies, correctly, that the charity has made a choice to support the nonexempt project financially.”
– Gregory L. Colvin, Fiscal Sponsorship: 6 Ways to Do It Right. 2nd ed. Study Center Press, 2005
Fill out a simple online form and join the directory!