Fiscal sponsorship is an arrangement in which a legally incorporated nonprofit extends their tax-exempt status to another entity by agreeing to accept and manage funds on their behalf. It occurs when an informal group or an individual wishes to receive tax-exempt contributions for charitable or community-focused activities without having to build a full organizational infrastructure.
Fiscal sponsorship arrangements can vary, but two are most common:
- Comprehensive: Ongoing sponsorship and support which may include things like human resources management, IT support, and other services. If your project is ultimately hoping to raise more funds than what is described in your ioby campaign or if you’ll need long term sponsorship that extends beyond the life of your project, comprehensive fiscal sponsorship from another organization may be an option to consider.
- Project specific: Limited to a specific project. ioby’s fiscal sponsorship is a type of project specific sponsorship and is limited to the project that you’ve described on ioby.
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