Fiscal Sponsorship? What are you referring to, and how does it work? The role of the fiscal sponsor can include performing many different administrative functions on behalf of the sponsored organization or program, including taking on the responsibility of receiving and administering charitable contributions on behalf of the sponsored organization. Some fiscal sponsors do a lot more, such as performing back-office functions.

It is quite common and perfectly acceptable for the fiscal sponsor to charge an administrative fee for its services, which is usually a percentage of the budget of the sponsored organization or program. Using a fiscal sponsor satisfies IRS requirements as long as the fiscal sponsor maintains the right to decide, at its own discretion, how it will use contributions. Maintaining control over the donated funds is a requirement of a legitimate fiscal sponsor arrangement.

Fiscal sponsorship is often used by newly formed nonprofits that need to raise money during the start-up phase, before they are recognized as tax-exempt by the IRS. Using a fiscal sponsor enables a program or organization that does not itself qualify as tax-exempt to attract funding for its operations that will -- through the fiscal sponsor - be tax-deductible to donors. Therefore, fiscal sponsor arrangements benefit organizations or programs that are not tax-exempt by providing a flow-through pathway for revenue that the organization may not otherwise be able to receive. There are times when 501c3 organizations may ask a community foundation to fiscally sponsor a charitable purpose project to assist with donor communication and marketing. 

Currently, the Golden Belt Community Foundation is assisting with the following projects as a fiscal sponsor: Great Bend Alive and the Innovation Center; La Crosse USD 395 Playground; Ellinwood Chamber of Commerce Digital Sign Project; Rise Up- At- risk family assistance; Barton Arts Movement; coming soon: Great Bend Senior Center Floor Project

If you have a passion for any of the above projects, please contact us via email or phone. We would like to help these projects be completed for the betterment of the communities they serve.

Jason Murray is the executive director of the Golden Belt Community Foundation.