Sponsorship proposal template pdf typically involves a fee-based contractual arrangement between a project and an established non-profit. Fiscal sponsorship can enable projects to share a common administrative platform with a larger organization, thus increasing efficiency. 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 nascent projects in developing the necessary organizational capabilities to eventually spin off as independent non-profits. Fiscal sponsorship arrangements, if not handled carefully, can be vulnerable to the criticism that they serve merely as conduits for the transmission of deductible donations to entities not qualified to receive them. However, in the last decade, the phenomenon of fiscal sponsorship has become a common ancillary activity for public charities involved in human service, environmental, and artistic endeavors. Non-profit institutions solely devoted to fiscal sponsorship have sprung up across the country, ranging from documentary film sponsors to public health research groups to separate corporations spun off by community foundations. Nevertheless, it is important for both sponsors and projects to understand the exact nature of their relationship. Sponsors are advised to ensure that the activity of sponsoring a particular project is done in furtherance of its own exempted charitable purposes, as sponsors can be exposed to some liability for the actions of any sponsored projects. The benefits of immediate tax-exempt status and administrative support must be weighed against the lack of autonomy and fees typically charged by the sponsor.
Fiscal sponsorship is practiced with many different models, which offer different benefits. Any work product is available to the public or to the charitable sector. In addition, the sponsor does not necessarily maintain ownership of any part of the results of the project’s work, ownership rights should be addressed in the fiscal sponsor agreement and could potentially result in some type of joint ownership. The sponsor simply assures itself that the project will use the grant funds received to accomplish the ends described in the grant proposal. Is project a separate legal entity?