What is a Fiscal Sponsor?

Fiscal Sponsor
A fiscal sponsor is a nonprofit organization that provides fiduciary oversight, financial management, and other administrative services to help build the capacity of charitable projects.
https://www.councilofnonprofits.org/running-nonprofit/administration-and-financial-management/fiscal-sponsorship-nonprofits

Fiscal Sponsorship Additional Resources
https://www.councilofnonprofits.org/running-nonprofit/administration-and-financial-management/fiscal-sponsorship-additional-resources

Donations are made to the fiscal sponsor, not to the sponsored program/organization directly. Since the fiscal sponsor is tax-exempt, the donor’s contribution will qualify as a deductible contribution.

The fiscal sponsor then makes a “grant” to the sponsored project/organization.

The fiscal sponsor is responsible for sending donors gift acknowledgements and for reporting the income and expenditures in its own financial records (such as the IRS Form 990).

Gift Acknowledgments
https://www.councilofnonprofits.org/running-nonprofit/fundraising-and-resource-development/gift-acknowledgments-saying-thank-you-donors

See also IRS Publication 1771
Charitable Contributions: Substantiation and Disclosure Requirements
https://www.irs.gov/pub/irs-pdf/p1771.pdf

Tips for Nonprofits on Fiscal Sponsorship, coutesy of Erin Bradrick, Principal at NEO Law Group, Attorneys for Nonprofits.
https://www.youtube.com/watch?v=iAJO6g_v90Y

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