What is a fiscal sponsor?
Before a charitable cause is incorporated as a nonprofit and/or recognized as tax-exempt by the IRS, it may need to raise funds.
One way of doing so is to register with a "fiscal sponsor" that extends its own registered and recognized standing to the charitable cause. The services provided may include fiduciary oversight, financial management and other administrative support.
Importantly, funds raised by the charitable cause are donated to the fiscal sponsor, which in turn grants them to the sponsored organization.
Can a fiscally sponsored organization become a Give Lively member?
If an organization is operating under a fiscal sponsor, it is not yet eligible to become a Give Lively member; membership is open to U.S. nonprofit public charities (not private foundations) with 501(c)(3) status and a GuideStar Nonprofit Profile. But the fiscal sponsor may apply! It must apply for Give Lively membership using its EIN and an email address from its organization, and by connecting a Stripe account to Give Lively. (If a sponsored organization attempts to apply with its fiscal sponsor’s EIN, the application will not be processed.)
If its application is approved, the fiscal sponsor can open a Give Lively account and then arrange with its sponsored organizations to make the most of our platform.
Remember: All funds raised will be sent to the fiscal sponsor’s bank account via Stripe or PayPal. How these funds are then disbursed to sponsored organizations by the fiscal sponsor is something that must be managed directly between them.
To learn more about what fiscal sponsors and sponsored organizations need to know about Give Lively membership and products, read more about it on our Resource Hub.