Fiscal Sponsorship - Frequently Asked Questions
Why choose fiscal sponsorship?
A proficient nonprofit can anticipate allocating between 20-30% of annual revenue to administrative and overhead expenses. Through The Foundry Community's administrative services, legal framework, and capacity-building support, fiscally sponsored projects pay only 10% of their annual revenue. This approach enables projects to concentrate on their mission, relieving them of administrative burdens. Fiscal sponsorship presents an efficient and cost-effective approach to managing organizational expenses while preserving the purpose of the organization's mission.
Are donations to Foundry Community Foundation tax-deductible?
Yes, Foundry Community Foundation is organized as a nonprofit corporation under Section 501(c)(3) of the internal revenue code.
What are the eligibility requirements?
Projects must align with the Foundry Community's mission, vision and values. Projects are headquartered in Nebraska and have a written business plan. Projects must also be a legal fit, following all IRS regulations and compliance with the law.
Does the Foundry provide funding for fiscally sponsored projects or assist with fundraising?
Organizations accepted as fiscally sponsored projects by The Foundry Community are accountable for creating and implementing their own fundraising strategies, as The Foundry Community does not supply funding. However, The Foundry Community does offer assistance in navigating confirmed grants and the reporting processes. The Foundry Community also provides opportunities for capacity-building through educational initiatives and strategic advising support.
What are the fiscally sponsored projects directors responsibilities?
Project directors are responsible for all programmatic operations, fundraising, financial stability of project, and all supervision of employees or volunteers. They are also responsible for legal compliance and effective communication with Foundry staff.