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MFL: Fiscal Sponsorship

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  • Fiscal sponsorship provides a valuable tool for charitable entrepreneurs to realize their vision by working with an established charity that takes in tax-deductible donations and private-foundation grants to fund their charitable activities. Yet there are many counterintuitive aspects to fiscal sponsorship, as well as popular misconceptions about what it involves: the idea that a charity could accept donations and pass them on to a non-exempt project while providing a tax advantage to contributors seems strange, even suspect. When set up correctly, however, a fiscal sponsorship works legally, helps charities to have a greater impact, and facilitates charitable entrepreneurship in the broader community.