Fiscal Sponsorship allows a tax-exempt entity to manage and receive funds for charitable projects carried out by non-tax-exempt individuals, groups and/or organizations. The tax-exempt entity assumes fiduciary, legal, fiscal, and administrative responsibility for the project, and retains control and decision-making power over the use of charitable funds raised for the sponsored project, the person, group and/or entity that has the relationship with.
Fiscal Sponsorship – by itself – is not considered a charitable activity. It is important that the activities that are carried out with Fiscal Sponsorship are, and that will depend on the type of tax exemption that the sponsoring entity has.
There are different ways to do Fiscal Sponsorship and they depend to a large extent on the type of project, the mission and operation of the sponsoring entity and the legal status of the person who receives Fiscal Sponsorship.
At HASER we visualize Fiscal Sponsorship relationships based on:
If you want to know more about Fiscal Sponsorship, visit: www.guiaauspiciofiscal.org
