Fiscal Sponsorship
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General questions about fiscal sponsorship
What is fiscal sponsorship?
Fiscal Sponsorship is when a nonprofit organization / foundation (usually one registered as a 501(c)(3) with the U.S. Internal Revenue Service) agrees to "sponsor" the activities of an individual, for-profit organization or corporation, foreign nonprofit, or any other type of organization, association, or group.
Fiscal sponsorship allows donations to the sponsored individual or organization to be tax deductible.
Fiscal sponsorship is often used by existing nonprofits to further their charitable or philanthropic public benefit purposes, or to incubate new nonprofit initiatives without the cost and time burden of registering a new nonprofit.
Do I need a fiscal sponsor to Post a Need?
No, many needs and activities don't require fiscal sponsorship.
You can Post a Need for awards, prizes, grants, investors, volunteers, collaborators, advisors, participants, any type of thing you need and much more without having a fiscal sponsor.
If you want donations to your Posted activity to be tax deductible, register the Post as "seeking fiscal sponsorship" so nonprofits offering sponsorship can find you.
Do I need a fiscal sponsor to Post an Offer?
No, anyone can Post an Offer of assistance or support on doGoodr.org.
Fiscal sponsorship is typically only for those posting needs.
Finding a fiscal sponsor
Who can act as a fiscal sponsor?
The ability to act as a fiscal sponsor is solely dependent upon the charter, bylaws and legal standing of the nonprofit sponsor. Please note that doGoodr and The doGoodr Fund do not endorse, guarantee or otherwise verify the claims, statements or actions of nonprofits offering fiscal sponsorship on this web site.
Please read our Terms of Use carefully for more details.
Typically, the only nonprofits that can provide fiscal sponsorship are those registered with the U.S. Internal Revenue Service or covered by group exemptions. However, we strongly recommend that you independently verify that your fiscal sponsor has the legal capacity to do so before entering into a fiscal sponsorship agreement.
Are fiscal sponsors available for any type of activity?
Whether your activity is suitable for sponsorship or not is decided by the nonprofit organizations that review your Post. The terms of any fiscal sponsorship agreement are between you and your sponsoring entity, and are not reviewed or endorsed by doGoodr or The doGoodr Fund.
doGoodr discloses to other members whether or not you have a sponsor, and helps match you with available sponsors.
How can I find a fiscal sponsor?
Option A: Create a Post indicating that you are "seeking fiscal sponsorship."
When nonprofit organizations Post an Offer, they can indicate if they want to offer fiscal sponsorship, and doGoodr will match you. doGoodr matches your Posts with nonprofit fiscal sponsors that have similar interests and objectives.
Or please try Advanced Search and search by member type.
Option B: The doGoodr Fund also offers fiscal sponsorship to qualified applicants. Please see the description of our program below.
The doGoodr Fund's Fiscal Sponsorship Program
The doGoodr Fund, Inc. ("The Fund") offers fiscal sponsorship to qualified not-for-profit organizations, for profit organization projects, partnerships and individuals in order to advance the Fund’s tax exempt purposes. Under a fiscal sponsorship arrangement, the Fund enters into a “pre-approved grant relationship” with an entity that is not a public charity in its own right. Donations to sponsored entities are tax deductible.
By providing fiscal sponsorship services to these efforts, the Fund is helpful in several ways. When sponsored by the Fund, initiatives and projects that are start-ups or of limited duration can benefit from eliminating the costs of establishing and then dismantling independent corporate status and accompanying administrative functions. These entities also benefit from the Fund’s ongoing involvement in the charitable and philanthropic community, and its expertise and the experience of its personnel. Independent efforts responding to unforeseeable crises and urgent situations can be located at the Fund, supporting immediate commencement of a responsive project and receipt of charitable donations, without waiting for the completion of legal formation documents.
The Fund’s general obligations as a fiscal sponsor in such projects might include receiving funds, accounting for funds, reviewing or completing reports, disbursing funds, and contracting for any required services. The Fund may also become the legal employer of staff if the level of support necessary for its projects so requires. The Fund will charge sponsored projects for the cost of internal administration and management, through a reasonable administrative fee.
The following guidelines will govern the Fund’s proposed sponsorship activities:
ELIGIBILITY: The Fund will sponsor only to the following recipients:
- Organizations exempt from federal income tax under Sections 501(c)(3) and 509(a)(1), (2), or (3) of the Internal Revenue Code;
- Other organizations engaged in activities, projects or initiatives that are exclusively for charitable, scientific, or educational purposes, as defined by the Code, who are selected on a nondiscriminatory basis without regard to race, sex, religion, or national origin, and whose principals and officers are not related by blood or marriage to any officer or director of the Fund, with the Fund retaining discretion and control within the meaning of Rev. Rul. 68 489;
- Individuals or Partnerships engaged in activities, projects or initiatives that are exclusively for charitable, scientific, or educational purposes, as defined by the Code, who are selected on a nondiscriminatory basis without regard to race, sex, religion, or national origin, and who are not related by blood or marriage to any officer or director of the Fund, with the Fund retaining discretion and control within the meaning of Rev. Rul. 56 304;
CRITERIA: The Board of Directors of the Fund will select projects to sponsor whose proposed activities, in the sole judgment of the Board of Directors, will further the exempt purposes of the Fund.
ADMINISTRATION FEES: An administration fee (“Administration Fee”) will be charged to the sponsored project based on the total donations funded through this fiscal sponsorship Agreement.
- Administrative Fees on funds raised through donors solicited by the Grantee shall be assessed at 5% of the value of all funds received.
- Administrative Fees on funds raised through any donors introduced to the sponsored project by the doGoodr Fund (“doGoodr Donors”) shall be assessed at 10% of the value of all funds received.
- In all instances electronic online donations through the producer’s web site (“Donate” button), contributions of stocks, bonds or other assets (not cash) may require charges of additional processing fees.
MAKING AN APPLICATION: Applications are only accepted electronically via email to contact@dogoodr.org. The applicant for fiscal sponsorship should provide the following:
- The legal name and type of entity making the application (with copies of its governing documents)
- The names and titles of all principals, officers, directors, managers and / or key personnel.
- A complete description of the initiative / project / organization that includes:
- Mission Statement: A concise statement of the goals, outcomes and public benefits of the project. Be sure to clearly define the charitable public benefits of your efforts.
- Project Overview: A detailed summary of the project / organization and its activities, background information, demographics served, gender served, locations served.
- Time Frame: Indicate if there is phasing or multi-year aspects to the project, or if the activities are ongoing.
- Amount of Support Sought: Amount of funding or assistance and "in-kind" assistance that will be sought from donors / assistance providers.
- Need for The Project / Organization: Answers the question: Why do this project?
- Endorsements tor the Project / Organization: Names of any other entities or individuals endorsing your proposal.
- Project Goals & Objectives: The charitable, educational, or scientific issues / activities addressed.
- Methods of Achieving Goals &Objectives: Work plan, outreach methods, collaborators, etc.
- Projected Outcomes: Tangible, deliverables and general public benefits of the project / organization.
- Methods of Evaluating Outcomes: Quantitative and qualitative.
- Major Funding & Support to date (including Matching or Challenges Grants in place, and / or value of "in-kind" support.
- Key Personnel: Bio and background information on producers, partners, etc.
- Proposal Budget Breakdown (donated and actual costs)
- Informational attachments (optional): Photo images, Video / DVD, PDFs, Powerpoint, etc.
- Disclaimers: State any conflicts of interest or other project completion disclaimers.
- Contact Information: Names, addresses, phone numbers, email addresses, web site, etc.
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