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 651-292-4381 or EMAIL for more information.

I’ve heard that I should get a fiscal sponsor. What is it?
A fiscal sponsor (also 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 people or organizations 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 agents 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. The granting organization will issue a 1099 to whoever accepted the check.

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 Fiscal Sponsorees must be organized as an entity (nonprofit, association or collective) and not an individual artist. Sponsorees may not be for profit organizations. Organizations must be arts-related and fit into Springboard’s mission. If you are an individual artist looking for sponsorship, we can refer you to other organizations with programs geared more specifically to you.

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 comprehensive list of the benefits here.

How does the application process work?
Application forms are available to be printed out *here*. We can also send you a hard copy. Applications are approved on an ongoing basis by the Executive Director and ratified monthly by our Board of Directors. Applications must include a preliminary budget and a $40 application fee.

How long does it take for my application to be reviewed?
The turnaround time for applications is about a week. This can be less or more depending largely on the completeness of the application materials.

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.

How long is the contract?
Our basic agreement is five years, but the contract can be renegotiated or terminated by either party at any time. If, for example, a sponsoree gets their own nonprofit status, having a fiscal sponsor becomes unnecessary.

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 agent! The easiest way to get a check is to send us an email; a written request for funds is best. 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! We can take donations for our sponsorees via Paypal. Again, make sure she notes that the money is for your organization. Paypal fees are taken out before the 7% admin fee.

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?
At the time of this writing, we have 13 active organizations, and about another 15 inactive files.

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