Nonprofit Fiscal Sponsorship Agreement Attorney In California

The Fiscal Sponsorship Benefit

Fiscal sponsorships create many advantages for organizations that don’t possess the required 501(c)(3) designation from the IRS. For instance, organizations can raise funds at lower administrative costs than if they tried to obtain nonprofit status on their own. Additionally, because all donations go through the sponsoring organization’s existing infrastructure and accounting systems, donors benefit from streamlined gifts with fewer paperwork hassles. Fiscal sponsorships can also be beneficial to established nonprofits who wish to make use of their existing infrastructure. By taking on fiscally-sponsored projects into their portfolio of activities or programs, they may gain access to new sources of revenue or new members of their donor base without having to invest significant resources into marketing or fundraising efforts. Additionally, partnering with a fiscally-sponsored project helps participating nonprofits expand their reach by amplifying program visibility among potential stakeholders and beneficiaries.