About Fiscal Sponsors

What is a fiscal sponsor? A fiscal sponsor is an organization that agrees to receive and administer your money. A fiscal sponsor has 501(c)3 status; they are nonprofit organizations, such as churches, schools, colleges, or civic groups. The fiscal sponsor relationship extends the nonprofit status of the sponsor organization to your organizing committee, which means that donations to your group can be tax deductible. Be aware that your fiscal sponsor will retain legal control over your money.

Why should you have a fiscal sponsor? Most people prefer to give money to tax-exempt organizations. Additionally, most states require groups that conduct charitable fundraising to be registered with the state. Many tax-exempt organizations are already registered with the state, so you will not have to register separately. Your organizing committee might also be able to make arrangements with your fiscal sponsor to use their facility, insurance, or equipment.

How do you find a fiscal sponsor? It is quite common for nonprofit organizations to support events such as Stand For Children Day. One of your committee members is part of an organization that will agree to be your fiscal sponsor.

While it makes sense to find a group with a similar mission to your organizing committee, a think beyond children’s organization. Some groups to approach are service clubs such as Kiwanis, Rotary, Lions, YWCA, YMCA, local chapters of NAEYC, Junior League, Big Brother/Big Sister, the Boys and Girls Club, children’s museums, Urban League, PTA, Goodwill, Catholic Charities, Lutheran Social Services, Jewish Social Services, etc.

Key issues to remember when working with a fiscal sponsor:

• The organization should act as your fiscal sponsor without a charge to your organizing committee.
• Your organizing committee is an independent group. Decisions on spending your funds should be made only by the members of your committee.
• Your organizing committee and your fiscal sponsor need to work through the logistics of the fiscal sponsor relationship. Be sure to establish in the beginning the mechanism for how donations will be deposited into the account and how you will access your money. Some fiscal sponsors may agree to open a separate checking account for you, under the umbrella of their organization, or have a member of your organizing committee as a signer on their account, which will allow you unrestricted access to your funds.

To make sure it is clear that the donation is meant for you, donors should write their checks using the following format:

Pay to: GLSEN Chapter Name (fiscal sponsor) Memo: SFC Day '98 (name of your committee)