What is Fiscal Sponsorship? How it Works, Best Practices, & a BIG Announcement

There are times when people who want to start a charitable program don’t really want to start a full-blown nonprofit. There are all kinds of reasons why that may be, but for many, it’s that they don’t want the overhead of a board of directors, incorporation, getting 501(c)(3) status, tax filings... the whole gamut. So, if that’s the case, what do they do? Well, fiscal sponsorship is a great option, and what’s we’re going to talk about today.

What is it? How does it work? What are some best practices? There’s a lot of stuff I’m going to cover, and it will really help you out if you’re interested in this topic. Stay tuned until the end for a special announcement!

🎉 BIG ANNOUNCEMENT:
NOW OPEN!! Compass Charitable Partners is a new 501(c)(3) fiscal sponsorship charity, brought to you by the experts at Foundation Group. Compass launched in December 2023 and is available to select charitable projects nationwide. Visit the website to learn more!

📚 ADDITIONAL RESOURCES:

🏆 YOUR NEXT STEP:

0:00 Introduction
1:06 Fiscal Sponsor Definition
1:44 Use Cases
5:09 Requirements for Sponsor
6:15 Requirements for the Project
7:38 Model Types of Fiscal Sponsorship
9:07 Best Practices: Donor Relations
9:33 Best Practices: Cash Flow
10:05 Best Practices: Reporting
10:40 Cost of Fiscal Sponsorship
10:48 BIG ANNOUNCEMENT 🎉🎉🎉
12:38 Conclusion

[Az_meg]

Your channel is amazing! I am an industry accountant. But I volunteer with folks who are unsheltered. This has been extremely helpful for our group

[c.j.brooks]

Amazing Video! read to approach my first potential sponsor soon!!💪🏿

[darkxmoonxfairy]

First off I want to thank you for your content. I have started volunteering for my local 501c3 and these videos have taught me so much.

My main question is how can I help my 5013c by selling products on eBay like goodwill. Or can I ? Our charity runs much like goodwill and all of our profits are used for scholarships or betterment of local community. I am seeing some items that come in and could be sold for much higher prices but because this is such a small community that we sell it at fifty cent prices . Think yard sale pricing scales.

Everyone at this non profit is volunteering. From the board members to the people working the register these are all amazing people I'm proud to work with.

[geilkindmachen]

Awesome! I’m scheduled to decide my first options with one of your sales reps on the 15th! I’m going to possibly use compass as a beginning point. Thank you!

[Sunny-fx]

What work do you have to do on the legal side if you create a project which then operates under a fiscal sponsorship?

[tonyaarnold]

Would a 501 c 3 be a fiscal sponsor for a 501 c 7? Would Model B or C be the best model?

[kathleendobbins]

Would it be okay for a 501(c) 3 to throw a fundraiser for another 501(c)3? But they collect the donations and then send it to the 501(c) 3 of benefit after the event?