Difference between revisions of "Fiscal Sponsorship"

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'''Introduction'''
 
'''Introduction'''
 
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Fiscal sponsorship provides a way for you to receive grants and donations to run programs without being an independent 501(c)(3) tax-exempt nonprofit organization. This information helps you decide whether your refugee organization needs fiscal sponsorship – and if so, how to develop and maintain a good relationship with a fiscal sponsor.  
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Fiscal sponsorship provides a way for you to receive grants and donations to run programs without being an independent 501(c)(3) tax-exempt nonprofit organization. This information helps you decide whether a project needs fiscal sponsorship – and if so, how to develop and maintain a good relationship with a fiscal sponsor.  
  
 
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It is hard in the U.S. to get grants for your organization unless it is an incorporated nonprofit organization with 501(c)(3) tax-exempt status from the federal Internal Revenue Service (IRS). Most foundations don’t make grants to nonprofit organizations without 501(c)(3) status. Government agencies tend to have the same rules. As you may already know, funders want to know you are using their funds only for educational or charitable purposes. Corporations and individuals usually want their gifts to be tax deductible. Having 501(c)(3) status provides that tax deduction and also gives your organization credibility. However, there are many reasons why your organization may not be ready or able to obtain its own tax-exempt status. Yet you may need grant money to support your work. What is the solution? Often, it’s fiscal sponsorship.
 
It is hard in the U.S. to get grants for your organization unless it is an incorporated nonprofit organization with 501(c)(3) tax-exempt status from the federal Internal Revenue Service (IRS). Most foundations don’t make grants to nonprofit organizations without 501(c)(3) status. Government agencies tend to have the same rules. As you may already know, funders want to know you are using their funds only for educational or charitable purposes. Corporations and individuals usually want their gifts to be tax deductible. Having 501(c)(3) status provides that tax deduction and also gives your organization credibility. However, there are many reasons why your organization may not be ready or able to obtain its own tax-exempt status. Yet you may need grant money to support your work. What is the solution? Often, it’s fiscal sponsorship.

Revision as of 00:38, 5 April 2017

Introduction
Fiscal sponsorship provides a way for you to receive grants and donations to run programs without being an independent 501(c)(3) tax-exempt nonprofit organization. This information helps you decide whether a project needs fiscal sponsorship – and if so, how to develop and maintain a good relationship with a fiscal sponsor.


It is hard in the U.S. to get grants for your organization unless it is an incorporated nonprofit organization with 501(c)(3) tax-exempt status from the federal Internal Revenue Service (IRS). Most foundations don’t make grants to nonprofit organizations without 501(c)(3) status. Government agencies tend to have the same rules. As you may already know, funders want to know you are using their funds only for educational or charitable purposes. Corporations and individuals usually want their gifts to be tax deductible. Having 501(c)(3) status provides that tax deduction and also gives your organization credibility. However, there are many reasons why your organization may not be ready or able to obtain its own tax-exempt status. Yet you may need grant money to support your work. What is the solution? Often, it’s fiscal sponsorship.