Fiscal sponsorship
Fiscal sponsorship is an arrangement where an established 501(c)(3) receives tax-deductible donations on behalf of a project or young charity that doesn't yet have its own exempt status.
The sponsor takes legal responsibility for the funds (typically for a 5–10% fee) and reports them on its own Form 990. The project gets deductibility and infrastructure without waiting a year for IRS approval.
If you're checking a fiscally sponsored project on CharityIndex, look up the sponsor's EIN — that's where the money legally lives and where the financials are filed.
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Related terms
- 501(c)(3) — A 501(c)(3) is a U.S. tax-exempt organization operated for charitable, religious, educational, scientific or similar purposes, to which donations are generally tax-deductible.
- EIN — An EIN (Employer Identification Number) is the unique nine-digit number the IRS assigns to a nonprofit, formatted like 12-3456789 — its permanent tax ID.
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