Fiscal Sponsorship: Myths and Facts

Nonprofit organizations may extend their tax-exempt status to individuals or unincorporated groups under fiscal sponsorship arrangements. These arrangements are often misunderstood since there is a lack of literature and discussion in this area.

After conducting interviews with foundation leaders and experts in the field, the consulting group BTW has released a paper to help the sector address the following misconceptions:

Myth #1: Fiscal sponsorship is only good for incubation
Myth #2: Fiscal sponsorship is just financial management
Myth #3: Fiscal sponsorship has limited utility in the nonprofit sector

By debunking these myths, the authors hope to inspire discussion so that fiscal sponsorship can play a more important role in helping the sector become more effective.

Here is the link to the report: More Than the Money: Fiscal Sponsorship’s Unrealized Potential (2007).

For more information, you might also review the first ever survey of fiscal sponsors that was published by the Tides Center: Fiscal Sponsorship Field Scan: Understanding Current Needs and Practices (2006).