What is Fiscal Sponsorship?
Fiscal sponsorship is a formal relationship between a 501(c)3 nonprofit organization and a group, project or organization where the 501(c)3 brings that organization under its tax status umbrella. This alternative to starting your own nonprofit allows you to seek out grants and solicit tax-deductible donations under your sponsor's exempt status. This means that you can raise money without having to pay taxes for your project, and that your donor pool grows because they can get tax benefits for donating money to your work!
What does PSN's fiscal sponsorship program offer?
Power Shift Network’s fiscal sponsorship program offers smaller groups, projects and organizations an opportunity to focus on your work—while Power Shift Network manages your bookkeeping, makes sure that you (and we) are working within the confines of the law, and serves as a parent organization that liaises with the IRS.
This program exists to help you dedicate your resources to the movement-building, campaigning, and organizing work you want to be doing, without having to spend capacity on administrative overhead to make sure you’re in compliance.
In addition to increasing your ability to fundraise, PSN’s fiscal sponsorship program also offers:
- Bookkeeping and Financial Management Support
- Tax receipts to all donors over $250 (per IRS requirements)
- Access to our online organizing and fundraising tools
- Operational coaching and support
Who does PSN sponsor?
In order for your organization, group, or project to qualify for fiscal sponsorship with PSN:
• You must already be a member organization of Power Shift Network
• Have clear mission alignment with PSN (climate/environmentally focused and/or youth led)
• Share our core values around decentralized networks, experimentation, and emergence
Currently sponsored organizations include:
Apply for PSN fiscal sponsorship
PSN and the member organization interested in fiscal sponsorship will go through the following process:
• Indicate interest by contacting staff point person Akilah Sanders-Reed at firstname.lastname@example.org
• Phone call/informational session
• Member organization fills out fiscal sponsorship application
• PSN Board votes to approve fiscal sponsorees
Limitations of the fiscal sponsorship program
Power Shift Network is continuing its fiscal sponsorship program for Fiscal Year 2022. We have eight fiscally sponsored groups now, with budgets ranging from $0 to over $100,000. We’re interested in growing to having 15 fiscally sponsored groups, so if you’re a small group interested in getting access to foundation funding and a more formal organizational structure, please be in touch!