Frequently Asked Questions about Fiscal Sponsorship
What is a fiscal sponsorship?
Fiscal sponsorship is a practice that has evolved as an effective and efficient means of starting new charitable initiatives, delivering public services, and seeding social movements. Fiscal sponsors are 501(c)(3) organizations that provide a home for groups or projects that do not have tax-exempt status but have a cause or program they want to begin. Many donors- foundations, corporations and government agencies – require tax-exempt status in order to be eligible for funding. A fiscal sponsor provides this, broadening the funding opportunities an individual or project can pursue. Management of resources through fiscal sponsorship allows groups or projects to focus on their program, while the fiscal sponsor handles the many financial and administrative responsibilities related to a grant award.
Why choose fiscal sponsorship?
Establishing an independent 501(c)(3) is expensive and time consuming. Being fiscally sponsored is extremely cost effective and saving money is important, particularly for organizations that are just emerging, testing new approaches to difficult problems, run entirely by volunteers, or working in issue areas where funding is scarce. In fact, in an environment where funding for all nonprofits is on the decline, it is important to emerging organizations not to compete with other organizations for limited funds. Fiscal sponsorship is an efficient, economic way to reduce the cost of running an organization and still maintain the integrity of the organization’s purpose.
Why should I choose Partnership for Child Health as my fiscal sponsor?
Partnership for Child Health is a nimble and flexible organization that can offer a quick turnaround in terms of project start-up and the following benefits to qualifying projects:
• A non-profit “home” for a time-sensitive project that needs to start right away;
• A turn-key operation that takes care of the finance, human resources and administrative details so project leaders can focus on doing the work;
• Connections to key child health leaders in Northeast Florida;
• Expertise in nurse care coordination and the medical home model; and
• Regular financial reporting.
Who can apply to Partnership for Child Health for fiscal sponsorship?
To be eligible to apply to Partnership for Child Health for fiscal sponsorship, your group or project must meet the following criteria:
• Reflect a similar commitment to the goals set forth in the Partnership’s mission.
• The cause or work supported must be for purposes that are legal, further a legitimate tax-exempt purpose and in no way jeopardize the tax-exempt status of Public Interest Projects.
• The proposed budget must be an appropriate and realistic estimate and match the needs of the project.
• The group or project must be able to raise enough funds. Funds are either already secured or likely to be secured, and appropriate sources for funding have been outlined.
• The project is feasible and has a high likelihood of being successfully completed.
• Proposed personnel have a track record in similar efforts and are likely to successfully complete the project.
What should I expect from a fiscal sponsorship relationship with Partnership for Child Health?
As a fiscal sponsor, the Partnership for Child Health acts as an umbrella organization for an individual or project and accepts and administers funds on its behalf. Because they are an integral part of The Partnership and not separate legal entities, projects are able to receive charitable donations and grants available only to tax-exempt organizations. The Partnership is legally responsible for the funds received on behalf of fiscally sponsored projects and insures that the funds are used for charitable purposes and that the donor reporting requirements are met in a timely fashion. The Partnership for Child Health Board of Directors is responsible for all legal, taxation, and regulatory issues for projects. Projects often also have their own advisory boards, which are designated caretakers of their project’s mission, responsible for strategic planning, program oversight, fundraising, outreach, and assistance to and review of the project director.
What is the first step in seeking a a fiscal sponsorship relationship with Partnership for Child Health?
Requests for sponsorship can be made by completing this application and mail or e-mail to:
Partnership for Child Health
910 North Jefferson Street
Jacksonville, FL 32209
admin@PartnershipForChildHealth.org
The Partnership can be found on the Fiscal Sponsor Directory