Fiscal sponsorship is a contracted agreement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. It is an alternative to starting your own nonprofit, and it allows artists to seek grants and solicit tax-deductible donations under Allied Arts Foundation’s exempt status.
Any money you receive through your fundraising is still considered income by the IRS and must be reported on your annual tax return.
Groups registered with their state as a nonprofit organization may use their Federal Employment Identification Number (EIN) for tax reporting purposes, rather than a personal social security number.
Our type of sponsorship falls under Model C (Preapproved Grant) for those following Colvin & Petit’s fiscal sponsorship categories.