What is Fiscal Sponsorship?
Fiscal sponsorship refers to the practice of non-profit organizations offering their legal and tax-exempt status to groups—typically projects—engaged in activities related to the sponsoring organization's mission. It typically involves a fee-based contractual arrangement between a project and an established non-profit. Projects may seek fiscal sponsorship for various reasons: an anticipated short lifespan, improved access to funding, increased credibility, and low-cost financial and administrative services. Fiscal sponsors can also assist nascent projects in developing the necessary organizational capabilities to eventually spin off as independent non-profits.
While every fiscal sponsor has its own program, they have at least one thing in common: fiscal sponsorship allows us to extend our nonprofit status to our sponsorees, making them eligible to receive funding that is typically reserved for nonprofit organizations. At ABC, we pride ourselves on our hands-on approach to our Fiscal Sponsorship+ (FS+) program. In addition to traditional fiscal sponsorship, our FS+ program takes a hands-on approach to helping newly-formed organizations grow. We offer 2 hours of subsidized technical assistance and a funder introduction each quarter.
Applications are now open!
The following organizations are members of the Fiscal Sponsorship Plus program:
We offer our sponsorees quarterly technical assistance services that are uniquely tailored to each group’s long-term goals. In this case, “technical assistance” refers to consultation, instruction, or training to increase your organization or project’s capacity. We cover topics including (but not limited to) program design and implementation; business planning and strategy; bookkeeping; social media marketing; grant writing, prospecting, and fundraising; community organizing; policy analysis; and more.
We also offer quarterly funder introductions, leveraging our connections in the philanthropic sector to link you with grantmaking organizations who might be interested in the work you’re doing. All of this gives you time to focus on the work you want to be doing while getting the tools and resources you need to establish your own organization.
Despite having “sponsor” in the name, fiscal sponsorship does not mean that ABC personally sponsors you by providing your project with funds. However, by extending our tax-exempt status to your project or organization, you become eligible to receive funds that would otherwise be inaccessible to you. The primary benefit of fiscal sponsorship for the sponsored project is the ability to solicit tax-deductible grants and donations without having to build a tax-exempt organization.
Set up an introductory meeting with Programs! This is an optional step, but we highly encourage it. If you’re interested in applying for fiscal sponsorship, reach out to our Programs team (at—you guessed it—programs@artsbusinesscollaborative.org) to set up a meeting. This meeting, which typically runs about one hour, is intended for you to ask whatever questions you might have about the fiscal sponsorship program, application process, etc. It also allows us to get to know you and your work!
You can apply HERE. There, you’ll fill out a brief submission form with pertinent details about your organization or project. In particular, you’ll be asked for your two-year business goals, fundraising plan, and how your project aligns with ABC’s mission: improving quality of life for people of color in the arts and STEM (science, technology, engineering, and math).
You also need to fill out a budget (we recommend using our template, but it’s not necessary). Your budget should include the current year, as well as projections for the next two years. Wherever possible, we appreciate when applicants explain how they arrived at the numbers in their budget. You can do this by adding notes to the budget spreadsheet, or by creating a budget narrative.
The application portal also allows you to submit up to five optional attachments of your choice! These could be testimonials from partners or clients, samples of your work, press coverage of your organization or project, etc.
If you need help, all applicants are entitled to receive up to two hours of free technical assistance with their application! Contact our Programs team to find out more.
New applications for fiscal sponsorship are reviewed by the Director of GAP Programs, who then forwards all application materials to our Fiscal Sponsorship Committee, a subcommittee of our Board of Directors. The Fiscal Sponsorship Committee meets periodically to review all applications. (The 2021 committee schedule is still pending.) Applications approved by the Fiscal Sponsorship Committee move on to a full Board vote. The majority of Board members must vote to approve an application before a project or organization is officially accepted into the FS+ program.
If approved, a formal agreement will be issued for you to sign… and then you’re in! You will receive a welcome packet with additional information and receive a formal onboarding, where we’ll determine the kind of technical assistance you’ll receive in your first year.
Applications can also be denied, or sent back for revisions. If the latter, it means the Committee needs additional information on your organization or project before they can vote. All applicants are notified when a decision is reached, no matter what the decision is.