What is a fiscal sponsorship?
Fiscal sponsors are 501(c)(3) organizations that provide a home for unincorporated groups or projects that do not have tax-exempt status but have a cause or program they want to begin. Many foundations, corporations and government agencies require tax-exempt status in order to be eligible for funding. A fiscal sponsorship 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 work while the fiscal sponsor handles financial and administrative responsibilities related to a grant award.
Why should I choose PIP as my fiscal sponsor?
With more than 20 years of experience, PIP has customized fiscal sponsorships to fit the needs of each individual group or project. Experienced staff will guide your project through the process. Moreover, PIP has expertise managing funds for projects that meet minimum budget requirements as well as those with multi-million dollar budgets.
Who can apply to PIP for a fiscal sponsorship?
To be eligible to apply to PIP for fiscal sponsorship, your group or project must meet the following criteria:
- Reflect a similar commitment to the goals set forth in PIP’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 PIP.
- The project budget must be at least $100,000 with funding secured. The project may be considered for fiscal sponsorship if at least one contribution is committed, either from one individual or one foundation, for $50,000 or more.
- 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 types of fiscal sponsorships does PIP offer?
PIP provides a continuum of services based on your group’s needs. All fiscally sponsored projects are governed by a fiscal sponsorship agreement. Your group has several options:
Limited Fiscal Sponsorship for Individuals and Organizations: PIP provides fiscal sponsorships for individuals or projects receiving a one-time grant from a single funding source or for a committed single donation of $50,000 or more. The individual or project is required to submit a proposal package to PIP that includes a project description, budget and biographies of key staff. PIP will deduct a six percent fee to defray our administrative costs.
Extended General Sponsorship: PIP provides ongoing fiscal sponsorship throughout the duration of a project. The target amount of funds to be raised must be a minimum of $100,000. Fiscally sponsored groups do their own fundraising from individuals and/or foundations. The group or project is required to submit a proposal package to PIP that includes a project description, budget and biographies of key staff. PIP sends acknowledgments directly to donors. PIP will deduct a ten percent fee to defray our administrative costs.
Project Management with Staff and/or Administrative Support: In very specific situations PIP may agree to hire staff and manage a project directly. These are very limited opportunities where the content of the project relates directly to PIP’s mission, and there is a significant overlap in terms of the focus of the project, funders and/or strategy.
What services does PIP offer as a fiscal sponsor?
- A physical and philosophically consistent “home” for your project;
- A network of like-minded social entrepreneurs;
- Connections to complimentary national efforts;
- Individualized attention;
- Flexible and responsible administration;
- Financial reporting;
- Donor relations; and
- Fund management.
What should I expect from a fiscal sponsorship relationship with PIP?
As a fiscal sponsor PIP acts as an umbrella organization for an individual or project and accepts and administers funds on its behalf. PIP 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.
Is there a 501(c)(4) vehicle for qualifying projects?
Yes. The Public Interest Projects (PIP) Action Fund, Inc. is a separate entity recognized by the IRS as a 501(c)(4). The same guidelines and charges apply for projects fiscally sponsored by the PIP Action Fund.
