Frequently Asked Questions


What is a fiscal sponsor?

A fiscal sponsor is a nonprofit organization that provides administrative, financial, and legal support to projects or organizations that do not have their own tax-exempt status. By partnering with a fiscal sponsor, you can access resources and services that enable you to focus on your mission without the burden of managing the administrative aspects.

How can a fiscal sponsor benefit my project?

Partnering with a fiscal sponsor offers several advantages. It allows you to receive tax-deductible donations, access grants, and benefit from the fiscal sponsor's established infrastructure. Additionally, a fiscal sponsor can provide financial management, compliance assistance, and administrative support, freeing you to focus on your programmatic work.

Do I lose control over my project if I work with a fiscal sponsor?

No, you retain control over your project's mission and activities. While a fiscal sponsor provides support and oversight, decisions regarding program implementation and strategic direction remain in your hands. The fiscal sponsor is a collaborative partner, working together to strengthen your project and help it grow.

How long can my project remain under fiscal sponsorship?

The duration of fiscal sponsorship varies based on the needs of the project and the arrangement with the fiscal sponsor. Some projects stay under fiscal sponsorship for a limited period, such as until they secure their own tax-exempt status, while others may continue the partnership long-term. The goal of The Inkubator is to support you until you are ready for independent operations. Hopefully this will be no more than 2 years.

What services does a fiscal sponsor provide?

Fiscal sponsors offer a range of services, including financial management, compliance assistance, grant administration, legal support, capacity building, and reporting. The specific services provided may vary depending on the fiscal sponsor and the sponsorship level chosen. It's essential to discuss and clarify the services offered during the partnership.

How are donations and funds managed by the fiscal sponsor?

Fiscal sponsors have systems in place to manage donations and funds received on behalf of sponsored projects. They typically establish separate accounts to track and allocate funds according to the project's needs and donor requirements. Transparency and proper financial stewardship are key principles upheld by reputable fiscal sponsors.

Can I apply for grants as a sponsored project?

Yes, as a sponsored project, you can often apply for grants under the fiscal sponsor's tax-exempt status. The fiscal sponsor helps administer and manage the grants on your behalf, ensuring compliance with grant requirements and providing financial reporting. This access to grant funding is a valuable benefit of fiscal sponsorship.

What happens when my project is ready for independent operations?

When your project is prepared to operate independently, a fiscal sponsor can assist with the transition process. This may involve supporting you in obtaining your own tax-exempt status, providing guidance on governance and legal matters, and helping you establish your organizational infrastructure. The fiscal sponsor is there to ensure a smooth and successful transition.

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