Fiscal Sponsorship

Fiscal sponsorship is a legal arrangement that allows a registered business or non-registered initiative without a 501(c)(3) tax-exempt status (“Project”) to operate under the umbrella of an existing 501(c)(3) tax-exempt nonprofit organization (“Fiscal Sponsor”). Through this relationship, the Fiscal Sponsor provides financial oversight, management, and administrative support, enabling the Project to receive tax-deductible grants while benefiting from the Fiscal Sponsor’s established tax-exempt status. This guide covers key things to know and consider before entering into a fiscal sponsor relationship.