What is Fiscal Sponsorship?
Fiscal Sponsorship is a structure in which your mission for social and environmental innovation can become a reality without the restraints of administrative and bookkeeping burdens.
Fiscal sponsorship with SEE is an efficient way to function as a 501(c)(3) with the benefits of SEE’s resources at a 6.5% fee – one of the lowest fees in the industry. Whether you are coming from a larger organization or another fiscal sponsor, you will receive personalized services in nonprofit management, bookkeeping, and human resources that include payroll, benefits, and insurance. The insurance covers both group medical and organizational insurance in general liability.
Benefits of Fiscal Sponsorship:
- Fiscal sponsorship offers start-up guidance to provide necessary resources and contacts to begin the fundraising process.
- A fiscal sponsor has existing systems in place to teach project directors the responsibilities and limitations of non-profits.
- Through fiscal sponsorship, a project can avoid the time-consuming and costly process of filing to the IRS directly for status.
- By operating under fiscal sponsorship, a project can take the time to grow to a sustainable level.
Reasons why SEE’s fiscal sponsorship could benefit your project:
– My project needs formal nonprofit structure to receive a grant.
A funder has identified potential in your project’s work and recognizes what you can offer to the nonprofit sector. With the structural benefits of being a project of SEE, a funder will be able to issue a pending grant. Fiscal sponsorship is recognized by funders and is a fast way to set-up nonprofit structure for your project enabling you to work on that grant instantly.
– My project is already organizing in the community but needs formal nonprofit structure to have a greater impact.
As a grassroots project next step would be to become a nonprofit. Filing to be a nonprofit with the IRS is an involved process and comes with administrative requirements and responsibilities that will take your time and energy away from the grassroots activism. By becoming a project of SEE, you will have the structure of a nonprofit and we will manage the administrative and bookkeeping burdens to keep you compliant with the IRS. This way you will be able to dedicate your time to ensure your project has the greatest impact possible.
– I would like to invest my money into a philanthropic project I care about and have ownership of the work done.
Rather than donating your personal philanthropy to an existing cause, you can begin a start-up non-profit project and become a social entrepreneur. SEE’s fiscal sponsorship will allow you to be a majority funder while also being considered a public charity. This way, you can invest your money into a cause you care about while having ownership of the work that is done.
– Other reasons SEE’s fiscal sponsorship is right for you:
- You would like to manage a donor-advised fund through SEE
- You are affiliated with an existing 501(c)(3) organization that would like to convert to a fiscally-sponsored project
- Your project or organization wants to develop a coalition
While these are common reasons for groups to seek sponsorship, they do not cover all scenarios, and we welcome applications for new projects.