What is a fiscal sponsor?

A fiscal sponsor is a registered 501c3 nonprofit organization, such as Catalyst, who receives money from donors on behalf of a project that does not have its own tax exemption status. By using a fiscal sponsor, you receive the benefits of a tax-exempt nonprofit organization without having to go through the legal paperwork of opening one for yourself.

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Why would a donor use a fiscal sponsor?

Donors may use their donations as an tax deduction, similar to other charitable giving. This allows them to support the projects they want to see made while maintaining charity financial benefits.

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Why would a creator use fiscal sponsorships?

It allows individual projects who do not want to set up a nonprofit organization to still receive grants and donations without setting up their own company.

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What does a fiscal sponsor do? Why are they valuable?

A Fiscal Sponsor:

• Accepts donations on behalf of a project

• Assumes legal liability for those funds

• Maintains accounting records for the project

• Prepares legal, financial, and tax reports for donors and funders (but we do NOT file grant reports, that remains the responsibility of the project)

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Is my project eligible for Catalyst’s Fiscal Sponsorship?

Most projects are eligible as long as your funds are meant for non-profit charitable purposes.

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How much does it cost? What is the fine print?

• 2.5% fee for Catalyst members

• 4% fee for non-members

• Contracts last at least 1-year

• Donations and grants must be made out to Catalyst in order to be tax deductible

• Catalyst then sends the money to you

• We prefer electronic funds but are also equipped to handle physical paper checks, if required

• Online funds are subject to an additional 3% credit card transaction fee

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How to I apply?

Send us an email at office@catalystories.com with the subject heading: Fiscal Sponsor Request