As fiscal sponsorship continues to become a more widely used tool for charitable impact, it is important that 501(c)(3) organizations acting as a fiscal sponsor are doing it right. Board members of sponsoring organizations must fully understand the role the organization is playing, its legal responsibilities and possible risks, and how to be a good steward and partner to its sponsored projects.
Read this guide to fiscal sponsorship from Propel Nonprofits and Springboard for the Arts. It identifies what a fiscal sponsorship agreement looks like, risks that organizations entering into these agreements should be aware of, and questions to ask while considering such an arrangement. Once your organization has decided to be a fiscal sponsor, this guide also offers insights on preparing contracts and approving new projects.
For organizations seeking a fiscal sponsor, Propel has created a list of organizations that are a good place to start, who may be interested in agreeing to a fiscal sponsorship arrangement.
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