What is Fiscal Sponsorship? How it Works, Best Practices, & a BIG Announcement

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What is Fiscal Sponsorship? How it Works, Best Practices, & a BIG Announcement

Рет қаралды 1,428

Күн бұрын

There are times when people who want to start a charitable program don’t really want to start a full-blown nonprofit. There are all kinds of reasons why that may be, but for many, it’s that they don’t want the overhead of a board of directors, incorporation, getting 501(c)(3) status, tax filings... the whole gamut. So, if that’s the case, what do they do? Well, fiscal sponsorship is a great option, and what’s we’re going to talk about today.
What is it? How does it work? What are some best practices? There’s a lot of stuff I’m going to cover, and it will really help you out if you’re interested in this topic. Stay tuned until the end for a special announcement!
🎉 BIG ANNOUNCEMENT:
NOW OPEN!! Compass Charitable Partners is a new 501(c)(3) fiscal sponsorship charity, brought to you by the experts at Foundation Group. Compass launched in December 2023 and is available to select charitable projects nationwide. Visit the website to learn more!
www.compasscha...
📚 ADDITIONAL RESOURCES:
•VIDEO: How Do You Start a 501(c)(3) Nonprofit? • How Do You Start a 501...
•VIDEO: How Do You Manage Restricted Funds? • How Do You Manage Rest...
•BLOG ARTICLE: What Is a Fiscal Sponsor? www.501c3.org/...
🏆 YOUR NEXT STEP:
•Fill out this form for a FREE consultation on how to start a nonprofit: bit.ly/3Tu9nYE
•Register for Fundraising TV: www.501c3.org/...
•Download the FREE eBook “10 Things You Need to Know Before Starting a Nonprofit” bit.ly/3XhFag0
0:00 Introduction
1:06 Fiscal Sponsor Definition
1:44 Use Cases
5:09 Requirements for Sponsor
6:15 Requirements for the Project
7:38 Model Types of Fiscal Sponsorship
9:07 Best Practices: Donor Relations
9:33 Best Practices: Cash Flow
10:05 Best Practices: Reporting
10:40 Cost of Fiscal Sponsorship
10:48 BIG ANNOUNCEMENT 🎉🎉🎉
12:38 Conclusion

Пікірлер: 15

@FoundationGroup 6 ай бұрын

Are you seeking a fiscal sponsorship 501(c)(3)? Visit Compass Charitable Partners on the web at www.compasscharitable.org

@experteez3179 4 ай бұрын

Any videos on 501 c10? I dont see any on your channel

@mkepler1 5 ай бұрын

Your channel is amazing! I am an industry accountant. But I volunteer with folks who are unsheltered. This has been extremely helpful for our group

@FoundationGroup 5 ай бұрын

We are so happy that our videos are helpful. Thanks for commenting!

@geilkindmachen820 6 ай бұрын

Awesome! I’m scheduled to decide my first options with one of your sales reps on the 15th! I’m going to possibly use compass as a beginning point. Thank you!

@darkxmoonxfairy 6 ай бұрын

First off I want to thank you for your content. I have started volunteering for my local 501c3 and these videos have taught me so much. My main question is how can I help my 5013c by selling products on eBay like goodwill. Or can I ? Our charity runs much like goodwill and all of our profits are used for scholarships or betterment of local community. I am seeing some items that come in and could be sold for much higher prices but because this is such a small community that we sell it at fifty cent prices . Think yard sale pricing scales. Everyone at this non profit is volunteering. From the board members to the people working the register these are all amazing people I'm proud to work with.

@FoundationGroup 2 ай бұрын

First off, thanks for watching, and sorry for such a delayed response. The way KZfaq posts the comments, it's not always easy to see on our end who has or hasn't been responded to. Selling thrift items is a legitimate way to earn revenue for your nonprofit. To keep it from being a taxable, commercial-equivalent activity, however, one of two things need to be true: 1) The items you're selling were donated, and/or 2) The staff responsible for the sales activity are volunteers. Sounds like both is true for you. If neither were true...you're purchasing inventory AND paying your sales staff...then it would most likely be taxable unrelated business income. Good luck with it!

@kathleendobbins9577 9 күн бұрын

Would it be okay for a 501(c) 3 to throw a fundraiser for another 501(c)3? But they collect the donations and then send it to the 501(c) 3 of benefit after the event?

@Sunny-f3x Ай бұрын

What work do you have to do on the legal side if you create a project which then operates under a fiscal sponsorship?

@FoundationGroup 21 күн бұрын

Great question. The choice really is up to you. Many will choose to remain structurally informal and operate as a sole proprietor. Others may form an LLC or an S-corp. If you intend to do this long term and/or you anticipate any level of legal liability exposure due to your activities, you should probably consider an LLC or S-corp to separate the activity of the project from your personal stuff.

@JacobieDardy-mw9io 6 ай бұрын

Love it

@FoundationGroup 6 ай бұрын

Glad you liked it!

@tonyaarnold2385 Ай бұрын

Would a 501 c 3 be a fiscal sponsor for a 501 c 7? Would Model B or C be the best model?

@FoundationGroup Ай бұрын

No, that wouldn't work. Fiscal sponsors are charitable entities, so their sponsorships must support charitable causes. A 501c7 would not qualify. Also, 501c7 orgs would need to be careful about that even if it could work, as they (501c7s) are very limited in the amount of nonmember income they can generate.

@tonyaarnold2385 Ай бұрын

Would working concession stands to raise money be considered nonmember contributions