About Fiscal Sponsorships, A Charity for Charities

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About the Program

The Lending a Helping Hand Fiscal Sponsorship Program provides a home for individuals or unincorporated groups wishing to receive tax-deductible donations for charitable or community-focused activities. A Charity for Charities provides administrative, financial and managerial support, freeing up charitable time, energy, money and resources to be focused on the charitable mission and programs and not on corporate and tax compliance.

There are many benefits for considering a fiscal sponsorship program, most importantly the ability to organize quickly without having to incorporate. It is a more efficient, cost-effective and convenient way to start out with an infrastructure in place and the administrative and financial functions taken care of. Tax-deductible contributions can be accepted immediately, and funding sources not willing to fund brand new groups will give to an existing organization with a proven track record.

A fiscal sponsor may only sponsor projects with a charitable purpose consistent with the sponsor’s own mission. The mission of A Charity for Charities is to educate the community about and raise funds for other nonprofits in the community. To achieve its mission more broadly A Charity for Charities is interested in working with groups and individuals through its Lending A Helping Hand Fiscal Sponsorship Program.

Guidelines

A Charity for Charities may choose to provide fiscal and project sponsorship for charitable projects that further its purpose. If A Charity for Charities serves as fiscal sponsor, it will lend its tax-exempt status to the project, meaning that the project becomes a project of A Charity for Charities subject to all IRS rules and regulations regarding charitable endeavors.

Sponsorship services include the provision of nonprofit status to a project (thus making contributions tax deductible), the receipting and managing of contributions, and the authorization and payment of grants and expenses from the fund created for the project. (Sponsorship services do NOT include extensive administrative, fundraising support or financial support.)

In order for A Charity for Charities to consider fiscal sponsorship, interested groups must complete a detailed application form that includes: (a) a description of the project; (b) its purpose and goals; (c) fundraising plans; (d) a list of advisory group members; (e) current and future budgets; (f) and a concise statement of how the proposed fund meets the charitable purposes of A Charity for Charities. Applicants are encouraged to discuss their projects and applications with A Charity for Charities staff prior to submittal.

A Charity for Charities staff will review the application and submit it to the Board of Directors of A Charity for Charities to decide whether to approve and adopt the project as A Charity for Charities project. If A Charity for Charities so decides, a fund agreement between the applicant and A Charity for Charities will be completed and a fund bearing the project’s name established. The project is then accounted for as “The ABC Fund, a project of A Charity for Charities” for IRS auditing, financial reporting, marketing and fundraising purposes. It is requested that groups credit A Charity for Charities in publications and news releases or stories. Likewise, A Charity for Charities may give the project mention in newsletters and annual reports of A Charity for Charities.

As a fiscal sponsor, the fund will be deemed to be a fund of A Charity for Charities, and A Charity for Charities is legally responsible for the project’s administration, management and disbursement of funds.

When A Charity for Charities resolves to adopt the project, it retains the right to approve payments from the fund created to carry out the purposes of the project. The project advisory group makes recommendations for the specific expenditures. A Charity for Charities staff reviews the recommendations and, if staff concurs, authorizes payment.

Groups may apply to other funding sources under the auspices of A Charity for Charities, but A Charity for Charities is not in any way responsible for actual fundraising or for providing financial support for the project.

A Charity for Charities staff must review in advance all fundraising plans and requests for funding. In addition, all copy used in marketing or fundraising must be approved by A Charity for Charities staff.

About the
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Fiscal
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