Fiscal Sponsorships

What is a fiscal sponsorship?

A fiscal sponsorship allows emerging nonprofits and community-focused 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 regional and national organizations offering Fiscal Sponsorship, and SIMBA is happy to offer them to Washington State emerging nonprofits and Eastern Washington-based for-profit businesses with processing fees no higher than 8%. 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, wanting to apply for a project-specific grant for your for-profit business, or trying to collect tax-deductible donations, you must have a fiscal sponsor.

Emerging nonprofits are not permitted to collect or solicit tax-deductible donations on their own. 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 pathway to revenue that the organization may not 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. Please note: Fiscal Sponsorship does not include SIMBA simply giving money to emerging non-profits or community-focused for-profits. SIMBA is neither a foundation nor a funder.