For individuals and groups looking to start a nonprofit, fiscal sponsorship offers a streamlined and supportive pathway to get your operations running without the immediate need for formal 501(c)(3) tax-exempt status. Fiscal sponsors are established nonprofit organizations that allow you to operate under their umbrella, offering key benefits such as access to funding, mentorship, and administrative support. Below is an overview of fiscal sponsorship and a list of reputable organizations to consider.
What is Fiscal Sponsorship?
Fiscal sponsorship is a partnership where a legally recognized nonprofit organization supports a new project by:
- Providing Nonprofit Status: Allows you to accept tax-deductible donations and apply for grants under their 501(c)(3) designation.
- Offering Guidance: Access to nonprofit management training, strategic planning, and compliance support.
- Handling Administrative Tasks: Assistance with accounting, payroll, insurance, and regulatory filings.
- Reducing Startup Time: Eliminates the need to immediately file for tax-exempt status, saving time and resources.
Top Fiscal Sponsorship Organizations
1. Tides Center
- Focus: Social justice, environmental sustainability, public health, and innovation.
- Website: tides.org
- Contact:
- Phone: (415) 561-6400
- Email: info@tides.org
- Address: The Presidio, 1012 Torney Ave # 400, San Francisco, CA 94129
2. Community Partners
- Focus: Fiscal sponsorship, mentorship, and training for Los Angeles-based nonprofits.
- Website: communitypartners.org
- Contact:
- Phone: (213) 346-3200
- Email: info@communitypartners.org
- Address: 1000 N Alameda St, Suite 240, Los Angeles, CA 90012
3. Fractured Atlas
- Focus: Creative and arts-related projects.
- Website: fracturedatlas.org
- Contact:
- Phone: (888) 692-7878
- Email: support@fracturedatlas.org
- Address: 248 W 35th St, 10th Floor, New York, NY 10001
4. Mission Edge
- Focus: Southern California nonprofits with an emphasis on professional development, operational support, and fiscal sponsorship.
- Website: missionedge.org
- Contact:
- Phone: (858) 432-2300
- Email: info@missionedge.org
- Address: 2820 Roosevelt Rd #200, San Diego, CA 92106
5. The Foundation Group
- Focus: Legal compliance, tax exemption, and fiscal sponsorship for nonprofits nationwide.
- Website: foundationgroup.com
- Contact:
- Phone: (615) 361-9445
- Email: info@foundationgroup.com
- Address: 107 Music City Cir #102, Nashville, TN 37214
Benefits of Fiscal Sponsorship
- Access to Tax-Deductible Donations: Start receiving grants and donations under the sponsor’s nonprofit status.
- Training and Mentorship: Learn how to run a nonprofit effectively from experienced professionals.
- Administrative Support: Focus on your mission while the fiscal sponsor handles compliance, accounting, and reporting.
- Networking Opportunities: Connect with donors, grantmakers, and experts in your field.
- Cost-Effective Startup: Avoid upfront costs associated with obtaining 501(c)(3) status, which can range from $3,000 to $10,000.
How to Choose the Right Fiscal Sponsor
- Align Mission and Values: Ensure the sponsor supports projects in your field.
- Understand Fees: Fiscal sponsors typically charge between 5% and 15% of funds raised.
- Review Contracts: Clarify roles, responsibilities, and the duration of the sponsorship agreement.
- Check Track Record: Research their success in helping projects achieve independence if that is your long-term goal.
Why Consider Fiscal Sponsorship?
Using a fiscal sponsor is an excellent way to test and grow your nonprofit concept while receiving professional guidance. It allows you to focus on your mission without being burdened by the complexities of administrative compliance and legal requirements.
For expert nonprofit accounting and compliance support, contact Key Forecasts:
- Phone: 562-643-7435
- Email: info@keyforecasts.com
- Website: keyforecasts.com
This approach can save time, and resources, and ensure that your nonprofit is on the path to success from day one!
