What is a nonprofit fiscal sponsor?

A nonprofit fiscal sponsor is a tax-exempt nonprofit organization that provides financial and administrative support to other nonprofit groups, typically start-ups, emerging, or small organizations that do not have their own tax-exempt status.

The fiscal sponsor acts as the legal sponsor of the sponsored group, taking on the responsibility for managing their finances, compliance with tax laws, and other administrative tasks. The sponsored group operates under the fiscal sponsor's tax-exempt status, allowing it to receive tax-deductible donations and grants, while the fiscal sponsor provides oversight and support.