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.
Complexity of the Catholic Church & Roe v. Wade | CatholicsforChoice.org
Nonprofit Trust Drops 3% Survey Reveals (news)
Gun Rights Advocacy Groups Fill Void Left By NRA (news)
Do you REALLY need an RFP? | Nonprofit.ist
988 National Suicide Prevention Hotline Launches This Summer (news)
High inflation hits food banks hard (news)
Roe V. Wade Changes the NGO Landscape (news)
Roe v. Wade, NGO Bill & Google Inclusivity Tool (news)
3 Steps to Talking Politics Without Tearing Your Hair Out | Kamy Akhavan
Earth Day Activity & Slow Nonprofit Job Recovery Q1 (news)
BLM Under Filing Scrutiny & New Drilling Leases (news)
Global Food Crisis & Google Analytics Cliff (news)
War Crimes Tracked by NGOs & Pending Food Crisis (news)
100k Ukrainian Refugees to U.S. & $43M to Habitat for Humanity (news)
What would happen if you interviewed an AI version of yourself?
Large-Scale Giving For Ukraine & Crypto Giving Acquisition (news)
292: (news) Census undercount & Oligarch Philanthropy Problem
291: (news) Historic Refugee Crisis & $80M Crypto Donation Response
290: (news) Invasion of Ukraine Triggers Humanitarian Catastrophe
289: (news) DOJ Headaches & Public Benefit App
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
The Fundraising Masterminds Podcast
People Places Planet