Fiscal sponsorship: charity without your own 501(c)(3)

Getting 501(c)(3) status takes months and real money. Fiscal sponsorship is the shortcut the sector built: an established charity extends its tax exemption to a project, receives donations on its behalf, and takes legal responsibility for the funds — usually for a 5–10% administrative fee.

When it's the right structure

• New projects testing an idea before committing to a full organization.
• Time-limited efforts — a memorial fund, a disaster response, a film.
• Movements that need a fiscal home but not a bureaucracy.

What donors should know

• Your deductible gift legally goes to the sponsor — its EIN is on your receipt, and its board is accountable for the money.
• The sponsor's Form 990 is where the project's finances live; look the sponsor up here and judge its credibility as you would any charity.
• A legitimate sponsorship is documented — the project's site should name its fiscal sponsor plainly. Vagueness about who actually receives the money is a red flag.

Well-known sponsors (community foundations, Tides, Fractured Atlas and peers) run hundreds of projects each; finding the sponsor's profile on CharityIndex and confirming its deductible status is the same two-minute check as for any other gift.