Fiscal Sponsor

In some cases, organizations have an opportunity for a sizable donation or grant and cannot wait for the IRS to determine 501c3 tax-exempt status. In this situation, organizations can consider working with an existing 501c3 organization as a fiscal sponsor. Essentially, the fiscal sponsor agrees to accept the donation on your behalf and then provides the funds to you upon 501c3 approval. Working with a fiscal sponsor brings additional reporting requirements, fund distribution policies, and fees. While this is not common, it is an option for organizations eligible for a large donation with time constraints outside the 501c review window.

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