What is Fiscal Sponsorship?
For a variety of reasons, many community groups or organizations do not want to acquire their own 501(C)3 status; the process is complicated and expensive or the project is temporary. At other times an organization has applied for tax exempt status but wants to be able to receive grant funding or accept donations before it receives its 501(c)3 designation; which can take many months. Fiscal sponsorship is a way for those groups and projects to qualify for grants and receive donations that require tax-exempt status while offering tax deductions to their donors.
What does the SJRCD Fiscal Sponsorship Program offer?
- Fast Approval
- We want you to get started on your project so we work to approve your application within a week of receiving your application. Apply today and you can get started on your project next week! Download the application here
- No Minimum Budget
- We do not require a minimum budget. And if you don’t already have funding, we can help you find donors, sponsors or grants.
- Low Administration Fees.
- We want you to spend your money on your project, so we keep our administration fees low. And we don’t charge any application fees.
- Taxes and Payroll
- We file form 990 with the IRS every year and that includes your project. We also handle your payroll and payroll deductions and reporting.
- Your approved project volunteers will be covered under our general liability insurance.
- Other Benefits
- In addition, to those services listed above , we offer help with website development and maintenance, we provide a Paypal “Donate” button to accept donations on through your website or emails, we will provide a Paypal Here credit card swiper to accept donations, we will receive material and in-kind donations with no administration fee charged, and we can help you find funding to support your activities.
How does it works?
San Juan RC&D’s fiscal sponsorship begins when we enter into an MOU (Memorandum of Understanding) with your group or organization. The SJRCD agrees to accept and manage charitable funds for you. Not insignificantly, the San Juan RC&D accepts financial and legal liability for the charitable work being done by your organization. You are then relieved from having to formalize any new organizational structures for your work and incurring the expense of applying for 501(c)3 status from the Internal Revenue Service. IRS regulations require that the San Juan RC&D, as fiscal sponsor, monitors the use of the grant funds or donations and other resources we receive on your behalf, including ensuring that the resources are used only for the purposes agreed upon between you and the grantor or donor.
Once your project is awarded a grant or receives a contribution which is conditioned on the fiscal sponsorship of the San Juan RC&D, the funds are made payable to San Juan RC&D for deposit in our FDIC bank account for your benefit. Your funds will be held separate from our general operating funds and other project funds. The San Juan RC&D will send appropriate acknowledgements and tax receipts for donations. Our fiscal sponsorship program guarantees, with a signed Memorandum of Understanding, that your funds will be held for your project’s or organization’s use only. We provide monthly or quarterly financial statements that include a Profit and Loss Statement and a detailed report of income and expenses. We guaranty that all grantor reporting requirements are met in a timely fashion. When your project wants to spend its grant money or donated funds, you will submit invoices or requests for funds approved by your Board or Steering committee to the San Juan RC&D. As a 501(c)3 fiscal sponsor we are legally responsible for ensuring that your funds are spent for non-profit purposes allowed by U.S. tax law and as agreed upon between the donor and recipient. We require receipts, invoices or other documentation to prove that your funds are being used appropriately. Many grantors require reimbursement requests before they release grant funding, the San Juan RC&D prepares and submits those requests.
How much does fiscal sponsorship cost?
The San Juan RC&D charges a 7% fee on all funds received through the SJRCD. We do not charge a fee for material or in-kind donations. Our admin fee covers costs associated with administrative work, receiving and managing funds, handling associated paperwork and reporting, a yearly independent audit and filing of IRS form 990, and liability insurance. Other services we offer as part of our fiscal sponsorship include payroll, payroll reporting, marketing assistance, clerical assistance, and website development and maintenance.
What kinds of projects can apply?
IRS regulations require that the mission of a fiscally sponsored project is consistent with the mission of the fiscal sponsor. Our mission statement is purposefully broad: promote sustainable communities and improve the quality of life through economic development and the conservation of natural resources. We will sponsor projects or events that are in line with our mission statement that are designed for any length of time; from single day events to long-term projects and by any size group of individuals or organizations.
Our Fiscal Sponsorship Program broadens the available avenues you can use to pursue funding for your project. It does not mean that we are your producers, fundraisers or steering committee, however, we may be able to assist in grant research and applications. Having the San Juan RC&D as fiscal sponsor confers credibility to your project. We are a respected and long standing organization with a proven track record for supporting exceptional projects.