How does the fiscal sponsor process work?
Fiscal sponsors are 501©3 designated entitities that agree to “sponsor” your ad hoc informal group. This can include churches, towns, and other non-profit organizations. The main thing to consider in setting up a fiscal sponsor relationship is whether the missions of the two groups (the 501c3 and your informal group) are related. Since the 501c3 is “sponsoring” your group, your group must be furthering their mission in some way. These organizations can receive donations on your behalf. Sometimes there is a processing fee – be sure to ask! You can even talk to them about negotiating the fee down – ideally, a NEGEF grant goes entirely to the grantee. NEGEF offers fiscal sponsor services to its grantees. If you have any questions, contact your state’s program officer.
