Fiscal Sponsorship Program  

Fiscal sponsorship can enable projects to share a common administrative platform with a larger organization, thus increasing efficiency. In addition to legal status, sponsors can provide payroll , employee benefits, office space, publicity, fundraising assistance, and training services, sparing projects the necessity of developing these resources and allowing them to focus on programmatic activities.

Projects may seek fiscal sponsorship for various reasons: an anticipated short lifespan, improved access to funding, increased credibility, and low-cost financial and administrative services. Fiscal sponsors can also assist projects in developing the necessary organizational capabilities to eventually spin off as independent non-profits. Please contact Jami (315) 566-9562 to discuss your project and needs for sponsorship.

Table Comparing Models for Fiscal Sponsorship

Model Type	Basic Characteristics	Is Project a separate legal entity	Relationship to ER Arts	Charitable Donations belong to	Liability of sponsor to third parties	Ownership of results	Payments shown on IRS returns filed by Sponsor	Payments shown on IRS returns filed by Project	Comments
Direct Project	Project belongs to sponsor & is implemented by it's employees & volunteers	NO	Employer - Employee	Sponsor	Total liabilities for acts of employees	Sponsor	990, Payroll Tax returns	Individual 1040	Legally, the project is no different than any other activty carried on by the sponsor directly
Independent Contractor Project	Project belongs to sponsor but is conducted by separate entity under contact	YES	Project - Contract	Sponsor	Varies, may be partial or Total	Sponsor Usually	990, 1099 if an individual	Depends on Project legal form. Example: corp, etc	Appropriate where a project is an integral part of the sponsor's work, but may be legally performed by an independent contractor
Pre-approved Grant relationship	Applies to sponsor for one or a series of grants, sponsor funds the project only to the extent that money is received from donors	YES	Grantor - Grantee	Sponsor	Selection and payment of grantee, plus terms set by funding source	Project	990	Depends on Project legal form. Example: Corporation, Parternership, Individual	Used by a non-501(c)(3) project, in order to raise tax deductible support from donors, private foundation or government grants.
Group Exemption	Sponsor obtains federal group tax exemption, confers 501 (c) (3) status on subordinate projects	YES	Subordinate - Affiliate	Project	Only as provided in affiliation agreement	Project	Annual listing of organizations, no financial information	990, separate or group return	Project gets 501(c)(3) status without separate application to IRS; must be subject to general supervision or control of sponsor.
Supporting Organization	Project gets its own 501 (c) (3) exemption but public charity status is based on support of sponsor's purposes	YES	Varies	Project	None	Project	None	990	Project must apply to IRS for 501(c)(3) status, but can be a public charity even with only one donor.
Technical Assistance	Project has its own 501 (c) (3) exemption but needs help with bookkeeping, tax returns, payroll, management, etc	YES	Management - Contract	Project	Only as provided in the Project contract	Project	990, if fee is charged	990, if fee is paid	Sponsor provides financial management to project, but all funds are raised and spent in the name of the project