Above is a great video from Amanda and the folks over at “Do Something”…
The quick five minute video is designed especially for small or “start-up” organizations that have community outreach programs. Amanda does a good job of explaining a few of the 501C3 basics including the benefits of incorporating and the Fiscal Sponsorship tactic (aka Fiscal Agent).
What Is Fiscal Sponsorship ( Fiscal Agent)?
The term “Fiscal Sponsorship” (or Fiscal Agent) basically means that you form a partnership with someone who already has their 501C3. In the partnership, the organization without 501C3 runs the program and does the work. And the organization with 501C3 is responsible for handling the money according to the terms of the grant.
Using a Fiscal Sponsorship is a very common arrangement and it’s a great tactic to use if you want to seek funding today but don’t have your own 501C3…
So What’s The Downside?
The most obvious downside is the fact that you must pay a fee to participate in this type of arrangement….typically 7% to 15% of the grant funds received will be paid to your partner.
For example up to $75,000 or more of your $500,000 grant will be paid to your partner.
It also makes some people uncomfortable to have ALL their grant money in the hands of someone else.
Sample Fiscal Sponorship Agreement?
Below is a sample agreement for a Fiscal Sponsorship.
Click Here to download the sample agreement or go to:
http://urbanawarenessusa.org/fiscal-sponsorship-sample
I hope this information helps!
-Ty
Tye Boone, MPH, CNC
Urban Awareness USA
