What is Fiscal Sponsorship?
In the simplest terms, a fiscal sponsor is a tax-exempt organization that commits to supporting the charitable activities of individuals or groups that support its mission. All Fusion Partners are federally tax exempt.
Fusion is a fiscal sponsor utilizing a cost effective, unique, and holistic model.
The charitable activities of the programs and projects sponsored by a fiscal sponsor must be consistent with the fiscal sponsor’s mission and activities. Partners are not screened for the fees they can generate for Fusion. Rather, they are vetted by the Board and management staff to ensure their missions and goals are aligned with those of Fusion. Then, they are selected for having the potential to provide “diverse social capital” to improve and impact historically underresourced communities. Organizational functions that would otherwise be covered by the Partner are taken on by Fusion for an allocation of revenue; this frees up the Partner to devote its energy and resources to its mission and work.
Fiscal sponsorship offers a great advantage for those who are launching new endeavors, or working toward independent status, as well as small groups who benefit from the resources a fiscal sponsor can provide. Operating under a fiscal sponsor allows community leaders to begin programs and services for a trial or incubation period prior to deciding to file for independent incorporation if they choose. Similarly, programs who have been operating informally for some time and are beginning the process of incorporation, may want to apply for funding through a fiscal sponsor while that incorporation process is underway. Others choose to remain fiscally sponsored for a longer period of time, making use of the nonprofit’s infrastructure to support their projects and focus on their mission.
Fusion provides traditional fiscal sponsor oversight and management so that each program has high quality administrative structure and integrity. Technical and administrative support includes the following:
Financial Management – Accounting, audit, tax reporting, expenditures, check writing, banking services, and tracking donations, funding and other revenue, as well as tracking expenses and drawdowns for each funding source.
Human Resources – Payroll, health benefits for employees, administration, employment policies, required forms, such as waivers or releases.
Grant Management – Providing access to solicit funding through Fusion Partnerships’ 501(c)(3) nonprofit status, grant review, management and reporting support.
Contract Services – Contract management such as advising and negotiating government contracts, insurance, independent contractors, leases, MOU’s, and other letters of agreements for our Partners.