Define: Fiscal Sponsor

A fiscal sponsor is a nonprofit organisation that provides administrative and financial support to another organisation or individual that does not have its own tax-exempt status.

An organisation may need a fiscal sponsor if it is not yet recognized as a tax-exempt entity by the IRS, or if it does not have the capacity to handle its own administrative and financial responsibilities.

Having a fiscal sponsor can provide access to tax-exempt status, grant funding, and other resources that may not be available to an organisation without its own tax-exempt status.

The fiscal sponsor provides administrative and financial support to the sponsored organisation, while the sponsored organisation retains control over its own programs and activities.

The fiscal sponsor is responsible for ensuring that all funds received on behalf of the sponsored organisation are used for charitable purposes, and for providing financial and administrative oversight.

Yes, a fiscal sponsor may charge fees for its services, but these fees should be reasonable and should not exceed the actual costs of providing the services.

The fiscal sponsor should have policies and procedures in place to ensure that all funds received on behalf of the sponsored organisation are used for charitable purposes, and should provide regular financial reports to the sponsored organisation.

Yes, a fiscal sponsor may terminate its relationship with a sponsored organisation if the sponsored organisation is not complying with the terms of the fiscal sponsorship agreement or if the fiscal sponsor determines that the relationship is no longer in its best interest.

If a fiscal sponsorship relationship is terminated, any remaining funds should be returned to the donor or used for charitable purposes consistent with the donor’s intent.

An organisation can find a fiscal sponsor by researching nonprofit organisations in its area or by contacting a fiscal sponsorship intermediary organisation.