Sometimes the best approach to solving a problem is to leverage others’ strengths and focus effort.
Fiscal Sponsorship is a way for individuals or coalitions to implement new programs for social change in our community. It is a formal arrangement in which Austin Community Foundation enters into a pre-approved grant agreement with a project that has significant community benefit but lacks its own tax exempt status.
A Fiscal Sponsorship agreement allows charitable venture to leverage the Foundation’s expertise to support their project. Project leaders can focus on implementing mission-based programs and services while the Foundation manages the processing and reporting of donations supporting the project.
This alternative to starting an independent nonprofit allows a project to solicit tax-deductible donations and seek grant funds through the Foundation’s exempt status. Fiscal sponsorship also assures funders and others who invest in sponsored projects that their dollars are being properly accounted for and well managed.
Examples of Fiscal Sponsorships:
- Coalitions and networks
- Start-up projects
- High impact community projects
- Projects with seasonal or time-limited programming