fiscal sponsorship 101

Fiscal Sponsorship 101

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Our Mission

The Urban Affairs Coalition

unites government, business,

neighborhoods, and individual

initiatives to improve the

quality of life in the region,

build wealth in urban

communities, and solve

emerging issues.

Fiscal Sponsorship 101 2


UAC by the Numbers

UAC has been interwoven into Philadelphia’s social fabric for over

45 years.

• Born out of the social justice movement in 1969

• Driven over $1 billion of social investment and economic impact

into the region in the last 45 years

• 150,000 individuals and their families are served annually

• Provider of nonprofit business services to 55 organizations and

15 projects

• 350 employees



Speaker Bio: Tivoni Devor

• I’m UAC’s Manager of Partnerships and Outreach.

• I help social entrepreneurs leverage fiscal sponsorship

to jumpstart their nonprofit endeavors.


• I’m a Drexel MBA and focused on nonprofit management.

• I have 15 years of nonprofit experience with content matter

expertise in developing earned revenue models and designing

strategic partnerships.

• I am an occasional columnist for Generocity.org, Nonprofit Quarterly

and other publications.


UAC: A Leader in Fiscal Sponsorship

• Practicing fiscal sponsorship for decades

• Came together with other major fiscal sponsors to found

the National Network of Fiscal Sponsors

– Founding member, Steering Committee Member

• The National Network of Fiscal Sponsors promotes the

understanding and professional practice of fiscal

sponsorship.

– www. fiscalsponsors.org



Agenda

1. What is Fiscal Sponsorship?

2. Who uses Fiscal Sponsorship?

3. Who provides Fiscal Sponsorship?

4. Q & A

6Fiscal Sponsorship 101


What is Fiscal Sponsorship?

• Fiscal sponsorship refers to the practice of nonprofit

organizations offering their legal and tax-exempt status to

groups engaged in activities related to the sponsor’s

missions.

• It typically involves a fee-based contractual arrangement

between a project and an established non-profit.

• While any non-profit organization can provide fiscal

sponsorship, only a few provide fiscal sponsorship as a

professional nonprofit business service.7Fiscal Sponsorship 101


Six Major Forms of Fiscal Sponsorship

There are 6 major forms of fiscal sponsorship:

1. Direct Project

2. Independent Contractor Project

3. Pre-Approved Grant Relationship

4. Group Exemption

5. Supporting Organization

6. Technical Assistance



Who uses Fiscal Sponsorship?

• Short-term projects that have a definite start and finish date

• Start-up organizations that want to move quickly

• For-profits that want to do non-profit activities

• Established organizations that are looking to reduce costs

• Distressed organizations that need organizational and

operational support

• Funders who are looking to experiment or fund small

projects that they can’t do internally



Services Provided By Most Sponsors

• Bookkeeping and Accounting

• HR and Benefits Management

• Tax and Insurance Compliance

• Program Support

• Professional Development



The Benefits of Fiscal Sponsorship

• Speed to market

• Lower costs to manage

• Access to highly skilled management

• Access to support and relationship network



The Myths of Fiscal Sponsorship

• I will lose all control of my organization

• It’s only for startups

• It’s expensive



The Risks of Fiscal Sponsorship

• Level of fiscal sponsor control

• Funder knowledge of fiscal sponsorship

• Control of intellectual property

• Financial instability of the fiscal sponsor



Where Can I Find a Fiscal Sponsor?

Other places to find Fiscal Sponsors:

• The Foundation Directory

• The National Network of Fiscal Sponsors

• Another 501c3 with a similar mission



Local Professional Fiscal Sponsors

While any 501c3 can provide fiscal sponsorship, there are

several organizations in the area that practice Fiscal

Sponsorship on a professional level:

• Urban Affairs Coalition

• CultureWorks Philadelphia

• Resources for Human Development

• Public Health Management Corporation



What to Ask When “Shopping” ?

• What are the fees and costs?

• What are the services provided?

• What level of customer service can I expect?

• Who will be assigned to my organization by the fiscal

sponsor?

• How long is the commitment?



Application Tips and Tricks

• Have a unique idea that will excite the sponsor

• Develop a solid business plan that covers:

– What you want to do?

– How you are going to do it?

– Why you are qualified to do it?

– What it will cost?

– How are you going to pay for it?

• Have funders committed and pledged to your project



Q & A

18

Tivoni Devor

Manager of Partnerships and Outreach

Urban Affairs Coalition

215-851-1936

[email protected]

Twitter: @tivonidevor


mailto:[email protected]

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