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What is a fiscal sponsorship agreement?

In a fiscal sponsorship arrangement, the sponsor accepts tax deductible donations and grants on behalf of the sponsored project/organization. The sponsor accepts responsibility for the use of those funds and ensures their application toward charitable purposes, along with any additional donor restrictions.

What is a fiscal sponsorship letter?

Fiscally sponsored groups applying to Flexible Support and Arts Impact for Groups must submit a Fiscal Sponsor Agreement Letter to confirm that your organization/group has an active working relationship with the fiscal sponsor at the time of application.

How much do fiscal sponsors charge?

Mostly fiscal sponsors charge a percentage of funds raised, although some may charge a flat fee or a monthly rate as well. Percentages for fiscal sponsor services range for Model C fiscal sponsorship from typically on the low side 3% up to 10% of first funds in Model A fiscal sponsorship and everywhere in between.

What is the difference between a fiscal agent and a fiscal sponsor?

Fiscal Agents vs. The key difference between a fiscal sponsorship and a fiscal agency arrangement is that funds contributed to a non-exempt project that has a fiscal sponsor are tax deductible to the donor and those that are contributed to a project with a fiscal agent are not.

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