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February 6, 2010
by SARAH TODD
From Savannahnow.com
Common wisdom in the nonprofit sector is that incubating nonprofits not ready to seek funding on their own can try to locate a fiscal sponsor. This is a more established nonprofit willing to serve as a funding channel, accepting and managing the funds for the newer organization.
It can be difficult to locate a fiscal sponsor. The sponsor must be a nonprofit and should have a mission that aligns with the project or organization being incubated. This is more than a preference. It is an IRS requirement. Because of the time involved, sponsors typically require a fee for their services.
There can be tremendous benefits to such an arrangement for the seeker - the ability to focus primarily on service provision, with less need for administration, facility expense and other back-of-house support. But there are complexities to this agreement that both organizations must understand.
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> Click here to access the full article on The Savannahnow.com website.
