Using the Whole Whale - A Nonprofit Podcast
Business:Non-Profit
Interview with Andrew Schulman of Schulman Consulting.
Here are some key points about fiscal sponsorships from the conversation:
- A fiscal sponsorship allows a new project or group to operate under the legal and tax-exempt status of an existing 501(c)(3) nonprofit organization. This avoids having to incorporate separately and apply for 501(c)(3) status.
- The fiscal sponsor provides back office services like accounting, HR, legal compliance, and manages fundraising so the sponsored group can focus on programs.
- Sponsors typically charge an admin fee of 8-12% of funds raised. Some charge a % of expenses instead. This covers their management costs.
- Good for getting started quickly, building a track record, and testing an idea before launching a standalone nonprofit. Provides credibility.
- Downsides are less autonomy, fewer funding sources, can’t get some nonprofit discounts, and sponsors add rules/oversight.
- Suggested to use a fiscal sponsor if raising over $50k in first year or don’t have nonprofit management experience.
- Most sponsors want to help projects succeed and transition to independence. Process takes 3-6 months after getting 501(c)(3) status.
- Fiscal sponsorships should be the default first step before creating a new 501(c)(3) since it simplifies startup.
In summary, fiscal sponsorships allow faster startup in exchange for some autonomy but are a great way to incubate and test a new social impact idea.
End of Affirmative Action - Impact on Nonprofits ⚖️🏛️❌🎓(NEWS)
Unbelievable Nonprofit Bet on Biomarker Pays off for Parkinson’s 💰🎯🧠 (news)
50% Increase in Youth Gun Violence (news)
Open Letter to Pause AI work by Nonprofit (news)
$250M Open Grants from MacKenzie Scott go live (news)
Building Nonprofit Fundraising Through Grants | GrantWatch.com
Nonprofit Insulin Maker Wins in CA (news)
NGOs Call On U.N. To Advocate For Reproductive Rights In U.S. (news)
Rise of Nonprofit AI - response to OpenAI shift (news)
Train Derailment & Environmental Fallout (news)
Is February for Fraud? (news)
Earthquake Devastation In Turkey & Syria (news)
How to Personalize for Purpose on Your Website | Optimonk
Is Charity Content for Clicks Charitable? The Mr. Beast Debate (news)
Buying Voter Files is so 2015 Advocay - Join 2023 with Quorum
Blood Donation Eligibility National Update (news)
Cookie-pocalypse & Fundraising in 2023 | Agility Lab Consulting
AmazonSmile Turned Upside Down Cutting $449m CSR Program (news)
Using Food Entrepreneurship to Feed Careers | Hot Bread Kitchen
MLK Day Celebrated by Nonprofits & Santos’ Charity Questions (news)
Join Podbean Ads Marketplace and connect with engaged listeners.
Advertise Today
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Social Dallas Podcast
Change Church Podcast
Six Degrees with Kevin Bacon
We Are For Good Podcast - The Podcast for Nonprofits
The Fundraising Masterminds Podcast