Corner4Nonprofits - Creating Healthy & Sustainable Nonprofit Organizations
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

ABCs of Starting a Nonprofit and Nonprofit Budget Development Webinar Training-Stress Free - Easy Learning
KBLX 102.9 Nonprofit Weekend Tip! What are 501c4 Organizations?
Conflict of Interest Policy - Gift Policy and Disclosure Form
102.9 FM Radio Nonprofit Weekend Tip! Can Nonprofit Board Members be family members?
KBLX 102.9 Nonprofit Weekend Tip! How many Nonprofit Board Members are required to sit on the Board?

Categories

Interviews
KBLX Exhibit Discounts
KBLX Nonprofit Weekend Tips
News - General News Worthy Nonprofit Info
NEWS - Nonprofits Execs Possibly Facing Jail Time
Nonprofit Articles
Nonprofit Audit Info
Nonprofit Budget Templates
Nonprofit Compliance
Nonprofit Compliance Laws
Nonprofit Emergency Funding
Nonprofit ERISA - 403(b) retirement plans
Nonprofit financial education
Nonprofit Financial Report Info
Nonprofit Fiscal Agent/Sponsorship
Nonprofit Fundraising Events
Nonprofit Health Care Compliance
Nonprofit Published Articles
Nonprofit Reserves - Cash
Nonprofit Start-Up
Nonprofit Surveys
Trainings
powered by

My Blog

Nonprofit Fiscal Agent/Sponsorship

KBLX Weekend Nonprofit Tip Fiscal Sponsors[Sponsorships

 KBLX 102.9 FM Radio (Northern California) Weekend Nonprofit Tip Fiscal Sponsors[Sponsorships


Fiscal Agents and Fiscal Sponsorships
 
 
When a charity corporation manages all or a portion of the funds for a community organization that conducts a charitable program but has not completed the full process of becoming a 501c3 (or like nonprofit corporation), that organization can choose to use a fiscal agent/fiscal sponsor, the  purpose of a fiscal agent/fiscal sponsor is to allow the community organization without the 501c3 status to collect grants and donations from its supporters and have its supporters receive tax write offs for their contributions.
 
Is this legal?  Yes
 
There are nonprofit corporations whose sole mission is to act as a fiscal agent/fiscal sponsor for a temporary period while the community organization is in the process of applying for its 501c3, before the new community based organization obtains its own tax exemption. Of course, the nonprofit organizations acting as fiscal agent/fiscal sponsor can charge a fee of upwards of 15% of the non tax exempt community based organization’s revenue to provide their service.