READ ME: Fiscal Sponsorships

So you want to be a fiscal sponsor or find one for yourself?

I have culled what I think are the best, most easily understood sources to get you started on the right track. They are all short, so I encourage you to read them all

First, a couple definitions from the National Council of Nonprofits:

• What does a fiscal sponsor do? Agrees to accept the administrative and fiduciary responsibilities of receiving charitable gifts on behalf of the sponsee

• How does it work?

The Sponsored Project/Organization ("sponsee"):

• Finds a nonprofit to serve as its fiscal sponsor

• Provides whatever records/reports it agrees to in its written sponsor agreement

The Sponsor:

• Affirmatively decides that serving as a fiscal sponsor is consistent with its mission

• Receives donations (not the sponsee), sends acknowledgments to donors, and grants the dollars to the sponsee

• Acts as fiduciary for the contributions made in all the ways it would its own, including reporting the income and expenses as its own (i.e., IRS Form 990)

Next, go-to sources to learn how to do it correctly:

• National Network of Fiscal Sponsors: Sponsee Responsibilities & Myths About...

• Gregory Colvin, author of THE book: 15 Questions to Ask & Agency v. Sponsorship

• Propel Nonprofits: A Board’s Guide to Fiscal Sponsorship & 3-min Video Primer

• Fractured Atlas: They have a detailed program and HERE is their agreement

Go forth. Do good. Be well.