We are often asked questions about fiscal sponsorship, where an existing Section 501(c)(3) organization agrees to sponsor an organization or project that itself may lack 501(c)(3) status. Fiscal sponsorship may be attractive to organizations or projects (i) that are limited in scope and desire to avoid the time and expense of formation, filing the Form 1023 exemption application, and maintaining tax-exempt status, or (ii) where the application for recognition of exemption is pending with the IRS and a current donor requests that his or her contribution be made to an organization that has already received a favorable determination letter regarding exempt status.
There are few publicly available resources regarding fiscal sponsorships. However, our friends at the St. Louis Volunteer Lawyers and Accountants for the Arts recently released a Guide to Fiscal Sponsorship This Guide may be obtained for free by clicking here. Although the Guide is written for arts organizations and artists, the principles regarding fiscal sponsorship generally apply to all organizations. The Guide also includes a list of other resources regarding fiscal sponsorship that may be useful for your organization or project.