In order to start up programs more quickly, many nonprofits – both startups and commercial companies converting to nonprofit-status – seek a “fiscal sponsor.” A fiscal sponsor is an established 501(c)(3)-certified organization that accepts funds on behalf of the sponsored program and ensures the funds are spent to advance the program’s mission. This allows new nonprofits to receive tax-deductible donations while they are ramping up or their status is pending with the IRS. Some nonprofits may be sponsored for a short time. Others stay under sponsorship for years as an efficient way to operate.
For information about INN’s fiscal sponsorships of news organizations go here.