How can you identify a fiscal sponsor vs a fiscal project?
I work in the 501c3 nonprofit world and every time I think I get a handle on the concept, my brain force quits.
Not expecting many answers, but anything helps!
In: Economics
Fiscal sponsors are often used by non- profits still working on getting their 501c3 designation or short term special purpose groups as a means to attract donations that still qualify as tax deductible under US IRS code.
For example I’m starting a new nonprofit related to a current event and want to start soliciting donations right away from larger donors that want to ensure they get their write off. I can either wait the 6+ months to go through the 501c3 process or I can secure another existing 501c3 to serve as fiscal sponsor. My donors will give to the sponsor and get the standard acknowledgement for tax purposes. The sponsor will then send the money to me as a grant (usually less a fee for processing and administration).
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