I’ve heard that I should get a fiscal sponsor. What is it?
Who is it for?
What does a fiscal sponsor do? Why would I want or need one?
Who can be a fiscal sponsor?
Who is eligible for Springboard’s Fiscal Sponsorship program?
Eventually I want to get my own nonprofit status, but I’m not sure what I need to do. Can you help?
I only have a few projects and I’m not interested in forming a separate nonprofit. Can I still be sponsored by Springboard?
Is Fiscal Sponsorship free?
What do I get for my fees?
How does the application process work?
How long does it take for my application to be reviewed?
My application for Fiscal Sponsorship was approved! Now what?
How long is the contract?
I got the grant! …Hey, the check is made out to Springboard. How do we get our money?
My group's first project is done, but we have more ideas! Do we have to reapply for Springboard to sponsor our next project?
My mom wants to donate money to my organization. Does she get a tax deduction?
My mom is really tech-savvy and wants to donate to my project online. Can she?
My application to Springboard’s Fiscal Sponsorship program was approved, but I didn’t get the grant I applied for. What happens now?
How many organizations does Springboard sponsor?
Wow, that’s a lot of organizations to keep track of! As a new fiscal sponsoree, how can I make things easier for you?

Didn't find what you were looking for?
Please contact Caly at 651-789-0163 or EMAIL for more information.

I’ve heard that I should get a fiscal sponsor. What is it?
A fiscal sponsor (also sometimes called a fiscal agent) is an organization that can receive tax deductible contributions and agrees to accept, and be responsible for, charitable gifts on behalf of a project. Using a fiscal sponsor, an individual or an organization can take advantage of a lot of the benefits of a nonprofit organization without being a nonprofit organization themselves.

Who is it for?
Fiscal sponsorship is a good solution for organizations (or certain individual projects) who only want to do small projects over a certain period of time, those who don’t have the time or staff for a lot of organizational administration, or for people who want to “test the waters” of running a nonprofit organization before taking the plunge (and doing a lot of paperwork!)

What does a fiscal sponsor do? Why would I want or need one?
A Fiscal Sponsor often:
- creates and maintains accounting records for the project
- accepts and safeguards charitable donations on behalf of the project
- pays bills
- prepares financial reports as required (however, filing grant reports remains the responsibility of the project organizers)
- keeps financial records on file

Fiscal sponsors bring experience to the project and may provide such additional aids as administrative services and even strategic planning assistance.

Most foundation and corporate funders require a recipient to be a 501(c)(3) corporation. Nonprofit 501(c) (3) corporations are able to accept contributed funds without any tax liability. If a grant or gift is made to an unincorporated group, the IRS may consider the grant personal income and therefore taxable.

Who can be a fiscal sponsor? Legally, any existing nonprofit organization can act as a fiscal sponsor (including a church or library), though not all nonprofits do. In the Twin Cities, there are a number of arts and cultural organizations that have different kinds of fiscal sponsorship programs.

Who is eligible for Springboard’s Fiscal Sponsorship program?
Springboard's Fiscal Sponsorship and Incubator Program is designed mostly for arts groups and projects organized as an entity (nonprofit, association or collective), though we sponsor a small number of individual artist projects as well. Sponsorees may not be for-profit organizations (i.e. incorporated as an LLC or S-Corp.) Sponsored projects must be arts-related and fit with the mission of Springboard for the Arts. Springboard requires a one-on-one consultation before an artist or group can be eligible to apply. Consultations are $45, and can be scheduled with either Development Program Director Betsy Altheimer or Executive Director Laura Zabel.

Eventually I want to get my own nonprofit status, but I’m not sure what I need to do. Can you help?
Yes! We’ve helped a lot of new organizations through the startup process.

I only have a few projects and I’m not interested in forming a separate nonprofit. Can I still be sponsored by Springboard?
Yes. Springboard sponsors organizations of various sizes and stages.

Is Fiscal Sponsorship free? No, Fiscal Sponsors generally charge a fee to cover administration costs. This varies from program to program. Springboard’s fees include a $40 nonrefundable application fee and 7% of grants and donations raised.

What do I get for my fees?
Springboard’s program is mainly designed to be an “incubator” for emerging organizations. We offer several services to our sponsorees; many are designed to help an organization on its way to becoming a separate nonprofit. Check out a list of the benefits here.

How does the application process work?
Once you've had a one-on-one consultation about the program, you are eligible to apply. Application forms are available to be printed out here. We can also send you a hard copy. Applications are due by the 15th of each month. Applications are reviewed and approved by the Fiscal Sponsorship Program Manager, the Executive Director, and our Board of Directors before the next application deadline. Applications must include a preliminary budget and a $40 application fee.

How long does it take for my application to be reviewed?
Applications are reviewed and approved once a month by our Executive Director and Board of Directors.

My application for Fiscal Sponsorship was approved! Now what?
Congratulations! We’ll send you a contract to review, sign and return to us. Then- get your grant proposal or your fundraiser together! Let us know how it’s going, or if you need any help. We like to keep a copy of your grant proposals in your file. Granting organizations will need some paperwork from us before you turn in proposals, so plan accordingly and keep us informed.

How long is the contract?
Our contract can be renegotiated or terminated by either party at any time. If, for example, a sponsored project gets their own nonprofit status, having a fiscal sponsor becomes unnecessary. Once a fiscal sponsorship relationship with Springboard ends, we will keep your records on file for five years.

I got the grant! …Hey, the check is made out to Springboard. How do we get our money? Grants and donations need to be made out to a non-profit in order to be tax deductible- that’s why we’re your fiscal sponsor! You will receive a deposit and check request forms- submit these to Caly to manage your funds. Springboard can write checks to your vendors individually, or simply to your organization in a lump sum (this works best if your organization has its own bank account.) We will mail checks within a week of your request.

My group's first project is done, but we have more ideas! Do we have to reapply for Springboard to sponsor our next project?
No- just let us know what you’re planning. Your subsequent projects also must fit with our mission and be consistent with charitable and tax-exempt guidelines.

My mom wants to donate money to my organization. Does she get a tax deduction? Yes! Checks from individual donors, like grants, must be made out to Springboard in order for them to be tax deductible. Make sure she writes the name of your organization in the memo line so we don’t mistake the donation as ours instead! We’ll send her an acknowledgement letter with our tax ID number.

My mom is really tech-savvy and wants to donate to my project online. Can she?
Yes! Our sponsored projects can create fundraising pages through Give MN. Contact Caly for more information on setting up a page with GiveMN.

My application to Springboard’s Fiscal Sponsorship program was approved, but I didn’t get the grant I applied for. What happens now?
Your file with us stays open, but it’s considered inactive until we are managing money for you. Feel free to look for other sources of funding- and contact us if you need some fundraising ideas! If your file is inactive for six months or more, we’ll need a revised budget for your program if you do another proposal or fundraiser for your project.

How many organizations does Springboard sponsor?
We sponsor over 100 small organizations and artist projects.

Wow, that’s a lot of organizations to keep track of! As a new fiscal sponsoree, how can I make things easier for you?
Hey, thanks for asking!

- Be aware of your deadlines. Sometimes we can get all the paperwork you need for your grant application prepared the day it’s due, but sometimes we can’t. Many of our sponsorees are often applying for the same grants, so our plate gets filled up fast for popular deadlines. A little planning ahead makes things easier for everyone.

- Make sure your donors make checks out to Springboard and not to your organization, and write your organization’s name in the memo.

- If you have a large number of individual donors and you keep their pertinent information in a digital format, sharing that with our office manager cuts down on administrative time considerably.

- Keep track of your records. While Caly is, of course, nearly perfect in every way, it’s always good to check things over and make sure she didn’t make any errors.

- Keep Springboard aware of what’s going on, if you’re exploring new funding, making changes, or have new projects coming up. We’re here to help you!

Back to the Fiscal Sponsorship Page