We don’t sponsor anyone, but had a fiscal sponsor when CC first started. What makes it official is your fiscal sponsorship agreement –ours is attached- which is between both orgs and signed by the director (or president or whatever title) of the fiscal sponsor and a rep from the org being sponsored. It’s got some specific wording that should be used.  Other than that, I can’t remember that we filed any paperwork, but I  think there’s a line item on the irs form 990 for fiscal sponsors to fill out how much $ the org they’re sponsoring brings in….and I’m pretty sure the sponsor pays taxes on that.

We were responsible for certain taxes and when we got grants, a certain percentage went to our fiscal sponsor –5% if the grant was under 5k and 3% if it was over –but a fiscal sponsor can choose to waive that percentage. 

An org must a nonprof to be a fiscal sponsor and usually the benefit of having one if your org is not a nonprof is for grant-writing, to get insurance, for payroll or compensation issues. If you’re an org looking to sponsor another, it has benefits too- putting your name out there –usually orgs that are sponsored have to promote their fiscal sponsor –put their logo and trademark kinda deal on all publicity, events, and campaigns.  Gives both orgs credibility, etc. etc.

On the flip side, if shit goes down and the sponsored org does too, then the fiscal sponsor can and usually is held accountable for money and insurance liabilities. The org being sponsored should act like an extension of the fiscal sponsor…ie. If your mission is to put bikes back into the community and make a strong statement against capitalism –or whatever, then the org you sponsor should embody that too. As well as the sponsored org should generally realize that they’re in a sense a rep of their fiscal sponsor.

In a nutshell and probably way simplified, but as far as I can recall…that’s all folks

Hope it helps. There is a fair amount of info online about it and  there is usually a state assoc of nonprofs that has a shit ton of info. In Colorado, we have canpo.org (Colorado assoc of nonprof orgs) and we used the a lot when we were just starting out.

wanda

(josh, you coulda just asked, haha.)

Wanda Pelegrina Caldas
Community Cycles, Boulder's only non-profit bike shop
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From: thethinktank-bounces@bikecollectives.org [mailto:thethinktank-bounces@bikecollectives.org] On Behalf Of veganboyjosh@gmail.com
Sent: Thursday, September 24, 2009 10:48 PM
To: The Think Tank
Subject: Re: [TheThinkTank] fiscal sponsorship

I would also be interested in hearing about this, so please if you do respond to Allison either cc me or post to the list.

Thanks!

josh.

On Thu, Sep 24, 2009 at 10:12 PM, allison karow <bike.saviours@gmail.com> wrote:

hi folks,

is anyone a fiscal sponsor for another bike project? if so, what forms did you and your umbrella'ed folks have to fill out? and what responsibilities (ie taxes, liability) do you share legally?

any info is appreciated!

thanks

allison
bike saviours bicycle collective
tempe, az


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