Fiscal Sponsorships

What is a fiscal sponsorship?

A fiscal sponsorship allows emerging nonprofits and for-profit entities to apply for grants and receive donations through the support of an existing 501(c)(3) who will act as your fiscal sponsor. The fiscal sponsor tracks grant revenue and income, processes tax receipts, and provides other services to allow the emerging nonprofit or for-profit business access to funds otherwise unavailable to them.

There are a number of local and national organizations offering sponsorships, and SIMBA is happy to offer them to Eastern Washington nonprofit and for-profit businesses with processing fees starting as low as 3%. Rates for other organizations serving as fiscal sponsors can be as high as 20%.

Why use a fiscal sponsor?

Most grant funders require recipients to be standalone 501(c)(3) organizations. If you are just starting your nonprofit, want to apply for a project-specific grant for your for-profit business, or simply want to collect donations as you are starting your charitable organization, you must have a fiscal sponsor.

Emerging nonprofits and for-profit businesses are not permitted to receive tax-deductible donations. 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 in a position to receive.

Ready to learn more?

Please email our Executive Director, Robin Haynes: robin@spokaneindependent.org to schedule a meeting and learn more about getting started with fiscal sponsorship.