Fiscal Sponsorship

Having enough funds to get a non-profit started can always be a challenge. Luckily, there is something called "fiscal sponsorship" that can help one get started. A fiscal sponsor is an established non-profit organization that is filed as tax-exempt by the IRS that then provides assistance to another group that is not yet filed as tax-exempt. They may not be filed because they are awaiting approval or for other reasons like being a short term project. A fiscal sponsor gives assistance to a new organization in several ways.

One way a fiscal sponsor can help a new non-profit organization get started is by taking charge of their finances. A new organization may not have the knowledge or experience in the handling of grants or donations, so the sponsor gives them guidance with expenses and how to file them for accounting purposes.Other than financial assistance, a fiscal sponsor can help a new organization learn the skills needed to manage a non-profit. Skills and past experience can easily be taught through a positive relationship between the two, which is why it is important to have the relationship pre-planned on paper as to how the sponsor will assist the new organization. By receiving this assistance, it will give the new organization more credibility and the ability to receive donations, since most people will not donate to a cause that is not yet filed as tax-exempt status. A fiscal sponsor can basically be the "jump start" to a new non-profit organization.

Although a fiscal sponsor assists a new organization in a number of ways, it is important to note that it may come at a cost. Some fiscal relationships may not charge a service fee, but other normal costs associated with the running of the organization can be expected, such as employee costs. In other cases, some relationships may require a certain percentage be paid. In either case, the rewards of learning to properly run an organization from one that is already established are plentiful with proper planning and management.

Finding a fiscal sponsor can be a great help in getting a non-profit started if they do not have the resources to start it on their own. For more information on fiscal sponsorship and how to get one started, the following links are helpful:

http://www.ctaconline.org/fiscal.asp

http://www.managementhelp.org/strt_org/strt_np/strt_np.htm

http://www.compasspoint.org/search/index.php?keywords=fiscal&acctech=1&boardcafe=1&bookstore=1&events=1&content=1&funders=1&links=1&askgenie=1&gallery=1&presenters=1&pressreleases=1&classes=1