Edward Reed Arts Organization

Supporting Artists as business owners

 

2452 Alki Avenue S.W. #302 Seattle, WA 98116

244 Fifth Ave, NY, NY 10001

Telephone: (315) 566-9562 Telephone: (646) 599-6255

 

     
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