Court 13 Arts’Fiscal Sponsorship Initiative

What is Fiscal Sponsorship?

Fiscal sponsorship is a beneficial arrangement where a 501(c)(3) nonprofit organization (the sponsor) supports individuals, groups, or projects (the sponsored) seeking grant funding and tax-deductible donations without needing their own nonprofit status. The sponsor shares its tax-exempt status, thus enabling the sponsored to receive these funds that they’d otherwise need their own 501(c)(3) status to access. Once funding is received, it is directed to the nonprofit sponsor, which then takes on the role of administering and overseeing the funds. 

In this arrangement, the fiscal sponsor assumes legal responsibility for the funds, and must ensure that the grant or donations received are used for the intended purpose agreed to by the donor and sponsored. This responsibility includes ensuring all financial reporting requirements of the donor are met. 

Fiscal sponsorship is NOT a cash donation or grant. It is a tool to help individuals, groups, or projects access funding. However, the responsibility of securing that funding remains solely upon the sponsored.

If you would like to learn more about our eligibility criteria and how to apply, please visit our FAQ here.