Fiscal sponsorship has evolved as an effective and efficient mechanism for starting new nonprofits, seeding social movements and delivering public services. Fiscal sponsorship means a nonprofit organization (the “fiscal sponsor”) agrees to provide administrative services and oversight to, and assume legal and financial responsibility for, the activities of groups or individuals engaged in work that furthers the fiscal sponsor’s mission.
Fiscal sponsorship confers significant potential benefits to the leaders of sponsored projects and the issues those projects address, allowing the efficient testing of ideas for addressing social and civic issues in a supportive, collegial atmosphere. It allows new community ventures to more quickly and efficiently get up and off the ground, without the delay or bureaucratic red-tape associated with incorporating and filing federal and state applications for tax exemptions.
Provide guidelines for a comprehensive fiscal sponsorship arrangement.
Related Resources:
NAO Guide to Fiscal Sponsorships
Sample Fiscal Sponsorship Agreement – The Colorado Trust