What is Fiscal Sponsorship?
‘Fiscal sponsorship’ is a term known within philanthropic and nonprofit worlds describing a relationship between an established 501(c)(3) organization and a project that does not have that status, but whose activities align with the 501(c)(3)’s mission and vision.
Propel Nonprofits is a member of the National Network of Fiscal Sponsors and follows its best practice guidelines. To learn more about our clients’ experiences with fiscal sponsorship, see our Fiscal Sponsorship Case Study report.
When Should I Consider Fiscal Sponsorship?
Have you applied for your 501(c)(3) status but want to start your charitable work now? Are you an individual or group wanting to ‘test drive’ a new charitable concept before making a long-term investment? A collaboration looking for a neutral host or a time-defined project? Or an ongoing project who wants to stay lean and focus your energies on mission and program? Then fiscal sponsorship might be the perfect fit as you realize your charitable objectives.
Benefits to Sponsored Projects
We jokingly call [Propel Nonprofits] our “nonprofit fairy godmother,” but honestly, it’s not much of a joke.
Jamie Millard, Executive Director of Pollen
Fiscally sponsored projects can accept tax-deductible donations from individuals and grantmakers while focusing on program work and fundraising. Propel Nonprofits’ dedicated fiscal sponsorship program allows you to get your charitable project or nonprofit off to a strong start, whether you’ve already submitted your 1023 form to the IRS or are still exploring what starting a nonprofit looks like. We’re here to be your strategy sounding board and can provide startup guidance and insights, organizational development, financial and board governance templates and trainings, and a bridge to helpful relationships.
Fiscal Sponsorship Criteria
- Located in Minnesota, North Dakota, South Dakota, Iowa, Wisconsin, or within a Native nation sharing this geography, although programming can occur outside of those states
- Will apply funds raised toward nonprofit purposes with a clear charitable mission
- Statement of Intent aligns with Propel Nonprofits mission, vision, and values
- Willing to incorporate or have an unincorporated association agreement and secure an EIN
- Has a plan to achieve financial viability and programmatic success
Projects engaged in the following activities are ineligible for sponsorship
- Designed primarily to benefit an individual or business (non-charitable)
- International activities involving financial transactions
- Raising funds through charitable gambling
- Mental health care, medical services, personal care, or childcare as a core service
- Those that require exceptional governmental oversight and licensing
Application fee: A non-refundable fee of $100 is due at the time of application.
Setup fee: Upon acceptance, a project pays a $300 one-time setup fee to offset costs of the onboarding process.
Ongoing fees: Our administrative fee is 7% of charitable funds received by the project (we do not accept any non-charitable funds) and $100 annual renewal fee. These fund management fees cover management of accounts receivable (receiving and processing donations, including sending donor tax-receipts); a monthly fund balance report; grants management; and support from experienced Propel Nonprofits staff including one-on-one consulting, access to free and discounted trainings, and guidance as you set your strategy and long-term goals.
Make a Donation
Our fiscally sponsored organizations are taking on important issues. You can support them with a donation here.