What is fiscal sponsorship?

Learn what fiscal sponsorship is and how it might help your organization

GiveGab Customer Success avatar
Written by GiveGab Customer Success
Updated over a week ago

"Using a fiscal sponsorship arrangement offers a way for a cause to attract donors even when it is not yet recognized as tax-exempt under Internal Revenue Code Section 501(c)(3). In essence the fiscal sponsor serves as the administrative "home" of the cause. Charitable contributions are given to the fiscal sponsor, which then grants them to support the cause. Learn about fiscal sponsorship in this short video (NEO Law Group)."

When it comes to fundraising, fiscal sponsorship allows a newly formed organization to start fundraising and receiving tax-deductible gifts before receiving their tax-deductible status from the IRS. This is a great way for an organization to explore if there is a market or a desire for their services, and to get start-up funds to bring their idea to the community, similar to starting a new business, while also allowing their donors to give tax-deductible gifts.

The National Council of Nonprofits has a great resource that goes into the details of fiscal sponsorship and all the advantages of securing a fiscal sponsor, as well as where to begin. 

If you're interested in learning more about how to fundraise through your fiscal sponsor on GiveGab, check out this article.

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