Services

Fiscal Sponsorship

Fiscal sponsorship allows organizations to do things differently. Since 2013, Propel Nonprofits has been delivering fiscal sponsorship to a growing number of charitable projects as they develop innovative responses to unmet community needs. We provide reliable infrastructure and financial and regulatory oversight, plus ongoing training and support.

Questions?

If you would like to discuss Fiscal Sponsorship for your project contact our Fiscal Sponsorship Program Manager:

Danielle Gangelhoff

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.

When Should I Consider Fiscal Sponsorship?

Are you an individual or group wanting to ‘test drive’ a new charitable concept before making a long-term investment? A project that is applying for 501(c)(3) status but wants to start your charitable work now? 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 is a resource you can use to realize your charitable objectives.

Benefits to Sponsored Projects

Fiscally sponsored projects can accept tax-deductible donations from individuals and grantmakers while focusing on program work and fundraising. We provide financial infrastructure, regulatory oversight, and grants and donor management. Shared administrative costs across multiple projects and discounts on training lead to overall cost savings and experienced Propel Nonprofits staff are always available for advice and encouragement.

Fiscal Sponsorship Criteria

  • Located in Minnesota, North Dakota, South Dakota, Iowa or Wisconsin, although programming can occur outside of those states
  • Must apply funds raised toward nonprofit purposes with a clear charitable mission
  • Statement of Intent aligns with Propel Nonprofits mission, vision, and values
  • Is 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

Fiscally Sponsored Organizations

“We jokingly call [Propel Nonprofits] our “nonprofit fairy godmother,” but honestly, it’s not much of a joke.”

Jamie Millard, Executive Director of Pollen

Click here to see a full list of our current and past fiscally sponsored projects.

 

 

 

 

Contact Us

If you would like to discuss Fiscal Sponsorship for your project contact our Fiscal Sponsorship Program Manager Danielle: 612.249.6671 or dgangelhoff@propelnonprofits.org

Fiscal Sponsorship Fees

Application fee: A non-refundable fee of $100 is due at the time of application.

Setup Fees: Upon acceptance, a project pays a $500 one-time setup fee. The purpose of the set-up fee is to offset costs of the onboarding process.

Ongoing Fees:  Our administrative fee is 7% of funds received by the project or 9% if the project is utilizing payroll. As part of this fund management fee, all projects receive monthly financial reports, grant and donor management, accounts receivable, and regulatory compliance. Depending on the model of service you use, you may also receive enhanced accounting services, including accounts payable and vendor 1099s.

Interested in Fiscal Sponsorship?

If you'd like to learn more about using Propel Nonprofits for fiscal sponsorship, fill out this brief eligibility questionnaire.

Start the Process

Need 501(c)(3) Status?

If you are interested in applying for a 501(c)(3) to become a nonprofit instead of finding a fiscal sponsor for your organization, we can help with that, too.

Start a Nonprofit

Case Study

AARP Foundation Experience Corps

"Propel Nonprofits gave me the opportunity to do what I do best, which is run a program."

Paul Simone, Executive Director
Quality Education Services