Fiscal Sponsorship

Fiscal sponsorship is a mechanism that enables a 501(c)3 to extend certain benefits of its legal tax-exempt status to groups and projects without the group or project having to file for nonprofit status on its own. Sponsored groups and projects can accept donations and apply for grants through the 501(c)3’s exempt status.

There are many different models of fiscal sponsorship, each with its own requirements. Fiscally sponsored projects sign a contract with the fiscal sponsor organization that lays out the legal, financial, tax, employment, and other stipulations of this type of arrangement. Generally, fiscal sponsors receive a fee for service, either a flat fee, or a percentage of the total grant funds awarded.

It’s important to note that the fiscal sponsor has a legal obligation to ensure funds raised through its tax-exempt status are spent on nonprofit activities. As such, they may have authority over some parts of your operations and finances. They will incur administrative costs, which may be passed on to your project. 4Culture will also pay your grant funds directly to your fiscal sponsor, who will in turn disburse the funds to you in the manner outlined in the contract with your fiscal sponsor. Learn more about fiscal sponsorship in this article from Candid.

Fiscal Sponsorship Eligibility

To be eligible for 4Culture grant programs, Fiscal Sponsors must:

Be a federally recognized 501c3 organization
Have a signed agreement with the sponsored program outlining the details of the sponsorship
Submit W-9 and ACH banking information for contracting and to receive payment

To be eligible for 4Culture grant programs, Fiscally Sponsored Groups Awarded Funds must:

Operate as if they were nonprofit including having an advisory/governing body. This governing body must be separate from their fiscal sponsor’s board and consist of a minimum of three people. (Not applicable for Projects Grants and Open 4Cutlure Grants)

Potential Fiscal Sponsors will be asked about the following organizational and structural elements to determine program eligibility:

Washington State Nonprofit Incorporation status
Primary mission
Organization location
Ability to provide Public Benefits

If you are planning to apply to a grant program with a fiscal sponsor, please confirm your eligibility, and the eligibility of your fiscal sponsor, with 4Culture staff before applying for any of our grant programs.

Eligible Fiscal Sponsors

4Culture staff have verified the eligibility of the fiscal sponsors listed below. This is not an exhaustive list of eligible fiscal sponsors. If you don’t see your fiscal sponsor listed here or you’re not sure if your fiscal sponsor meets the requirements, please reach out to 4Culture staff to confirm. If you are an organization who is interested in becoming a fiscal sponsor, please contact the program manager for the discipline that best aligns with your organization.

This list is not comprehensive and should not be taken as an endorsement. It is your organization’s responsibility to thoroughly vet your fiscal sponsor before entering into an agreement.

Frequently Asked Questions

How do I know if my fiscal sponsor meets all 4Culture’s eligibility requirements?

The list of fiscal sponsors on this page meets all eligibility requirements for 4Culture. If your fiscal sponsor does not appear on this list, please contact 4Culture staff to discuss their eligibility.

Can any organization with 501(c)3 status act as a fiscal sponsor?

Any organization with 501(c)3 status that is interested in providing these types of services may do so. The fiscal sponsor organization should understand their legal and fiscal responsibilities in acting as a fiscal sponsor, and a contract must be in place between fiscal sponsors and applicant organizations.

Does my fiscal sponsor need to have the same kind of mission and program focus as my organization or program?

Fiscal Sponsors are required to be 501(c)3 recognized organizations, with an aligned mission.

My fiscal sponsor has a Board of Directors. Does my group need to have a Board as well?

Your group should have an Advisory Board that is specific to your group and differs from your fiscal sponsor’s Board of Directors. The Advisory Board must consist of a minimum of three individuals. (with the exception of Projects Grants, for which maintaining an Advisory Board is not a requirement)

When you work with a fiscal sponsor, whose financial history (990 information) should you provide in your application?

Please provide the financial information for your organization and project and NOT that of your fiscal sponsor. Your financial information and history are used in the application evaluation.

If funded, fiscal sponsors will be required to provide their W9 and to complete a Contract Reassignment form, confirming both the Fiscal Sponsor and grantee agree they are working together in an official relationship. In addition, 4Culture encourages funds transfer via ACH, and will ask for the fiscal sponsor’s ACH banking documentation as part of the contracting process.

Who signs the contract and receives payment?

If funded, the contract will be made between 4Culture and the fiscal sponsor. The fiscal sponsor will sign the grant contract and receive payment. 4Culture will distribute funds to the fiscal sponsor via terms of 4Culture’s contract, and the fiscal sponsor will distribute to the grantee in accordance with their fiscal sponsorship agreement.