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A relatively small number of foundations award grants directly to individuals; the vast majority limiting their funding to nonprofit organizations only. However, if you are seeking support for a project but are not affiliated with a nonprofit organization, you may be able to use an organization to serve as your fiscal sponsor. What this means is that the nonprofit organization would apply on your behalf for funding and, if received administer the funds and complete any required reporting. Contact us today for more information on obtaining Fiscal Sponsorship from Foster & Banks Walk in Faith Foundation.

What is a Fiscal Sponsor?
An arrangement made between an individual or organization that is doing a program or project and wants to get support/funding from a foundation government agency or any tax-deductible donation from an individual or corporation with a tax-exempt organization.
Fiscal sponsorships enable organizations or individuals access to funds that may not otherwise be available to them.
Fiscal sponsorship is often temporary.
Fiscal sponsors are very selective in determining what projects to take on for fiscal agent relationships.

Who can be a Fiscal Sponsor?
Any organization that is tax exempt under Section 501(c )(3) – (which means they have received a letter from the IRS approving the organization’s application for tax exempt status) may be a fiscal sponsor.  If you are seeking a fiscal sponsorship it is always a good idea to find  one whose mission will be enhanced or advanced by the project or program that you are proposing.

Pre-approved grant relationship Fiscal Sponsorship
There are several types of Fiscal Sponsorship, Foster & Banks Walk in Faith Foundation uses the following model:

In a Pre-approved grant relationship Sponsorship Relationship, the fiscally sponsored project does not become a program belonging to the sponsor (as is the case with Comprehensive Sponsorship), but is a separate entity responsible for managing its own tax reporting and liability issues. In addition, the sponsor does not necessarily maintain ownership of any part of the results of the project’s work, ownership rights should be addressed in the fiscal sponsor agreement and could potentially result in some type of joint ownership. The sponsor simply assures itself that the project will use the grant funds received to accomplish the ends described in the grant proposal.

Example of a Pre-Approved Grant Relationship:
An artist not affiliated with any nonprofit organization wants to do an outreach program in the schools and she goes to the 
local Arts Consortium to share her idea.  The Arts Consortium thinks it’s a valid cause however does not want full liability or ownership of the project.  The consortium agrees to fund project assuming all of the funds are raised.  A grant agreement is drawn up and the artist and the consortium go to the local City Foundation and request restricted funds for the outreach program. Funds are obtained and the sponsor distributes these to project-based expenses that follows an  agreed upon payment plan. This will  be considered taxable income for the artist and not the sponsor.