A fiscal sponsor is a nonprofit organization that provides fiduciary oversight, financial management, and other administrative services to help build the capacity of charitable projects.
There are multiple “models” of fiscal sponsorship. LCNI offers “Model A” or comprehensive fiscal sponsorship. This model allows individuals, groups, or businesses without their own 501(c)3 tax exemption to receive grants and donations, which pass through the sponsor (the tax-exempt nonprofit) as a re-grant to the “project” (the term for an independent mission operating under a fiscal sponsor’s umbrella). This model also offers complete access to shared, back-office staff and infrastructure for projects and established organizations alike, either as a short-term or “forever” solution.
Starting and sustaining a nonprofit are not easy tasks. Fiscal sponsorship can be a good alternative to starting a nonprofit in these scenarios:
- It is a collaborative project that needs a neutral host
- The scope of the project is fairly defined/focused
- One-time, short-term or time-defined projects
Fiscal sponsorships can also be a good option when an individual or group has decided that starting a new nonprofit is a good option, but wants to establish a strong foundation of operation before making a long-term investment and starting their own nonprofit.
In most instances, the fiscal sponsor will delegate the day-to-day work and operations of the project to project leaders, but those individuals will be required to report all information necessary for the fiscal sponsor to carry out legally required governance and oversight activities. The project essentially operates as a program of the fiscal sponsor allowing it to access more robut, long-term support for its work. The fiscal sponsor takes on the project, and all of its risks, because it advances the sponsor’s own charitable mission.
Yes, fiscal sponsors are co-managers with you for everything “behind the curtain.” Your public face remains independent: your brand, donor/funder relationships and decisions about vision, mission and organizational development remain with you (and your board/advisory committee if you have one). Fiscal sponsors are like shopping malls and projects the individual storefront businesses. The individual businesses share lots of common resources provided by the mall (parking, common space, security, etc.), but retain their independent brands, customer relationships, and secure space for their assets.
The funding community is embracing fiscal sponsorship as a means of promoting greater sustainability in the nonprofit sector. Hesitancy by funders and donors is almost always an issue of understanding of or familiarity with fiscal sponsorship. A bit of clarification and education from the sponsor usually sets things right.
LCNI offers a variety of tiered pricing options based on project size and complexity. Prices start at $250 a year. Talk with our Affiliate Administrator to determine the pricing tier appropriate for your project/vision. You can reach out to our affiliate administrator for more information about pricing for your particular project, Sara Marsolek at info@lcni.org by calling 608-782-3223 ext. 25.
No, at this time we are not able to administer projects that have employees.
No, but projects can apply for grants using LCNI as fiscal sponsor.
Contact our Affiliate Administrator at La Crosse Community Foundation Sara Marsolek at info@lcni.org by calling 608-782-3223 ext. 25.
These FAQs were drafted/shared from the following fiscal sponsorship resources: