Thank you for your interest in working with PofA as your fiscal sponsor. This info sheet is meant to give a quick overview of what a fiscal sponsor is and what our working relationship would entail. We hope it is useful for you as you consider working with us as your fiscal sponsor.
WHAT IS A FISCAL SPONSOR?
Are you an artist or a group that has your sights set on grants or sponsorships for your puppetry project? Consider PofA as your fiscal agent in applying for this funding. A fiscal agent, fiscal sponsor, or financial agent is a proxy that manages financial matters on behalf of another party. Fiscal sponsorship allows an organization without Internal Revenue Service 501(c)(3) tax- exempt status to receive funds via an established nonprofit with 501(c)(3) tax-exempt status.
Puppeteers and puppetry guilds, members of PofA, have applied for and received grant funding through the financial management of Puppeteers of America. This service is offered to assist in the work of talented artists toward the preservation, education and promotion of puppetry arts. Fiscal Sponsorship is a benefit we offer to members of PofA to help them reach their goals.
WHY WOULD I NEED A FISCAL SPONSOR?
If you apply for grants and/or funds from a non-profit organization with 501(c)(3) status, often these funds cannot legally be distributed to persons or groups who do not also hold a 501c3 status. Of course, tax-exempt 501(c)(3) status is not always the best option for puppetry groups or individual puppeteers. By partnering with PofA as a fiscal sponsor, we are able to receive funds with our 501(c)(3) status on your behalf and distribute them to you. We keep a fee of 5% of the total funds for the administration, accounting, and management of the grant monies.
HOW DOES IT WORK?
Step 1: You find a funding opportunity that requires you to either hold 501(c)(3) tax-exempt status or requires you to partner with a fiscal sponsor.
Step 2: You reach out to PofA, informing us about the funding opportunity you are applying for and that you would like to work with us as a fiscal sponsor.
Step 3: Once a fiscal sponsorship agreement has been signed by all parties, we can provide a letter indicating that we have agreed to serve as your fiscal sponsor for the specific project and opportunity you are applying for (this will need to happen every time you apply for grant monies with PofA serving as your fiscal sponsor). If requested by the granting agency, you can include this letter in your application materials. When you submit those materials, we request a copy for our files.
Step 4: When you receive the funding you have applied for, the organization will write the check to PofA. We will receive it and deposit it into our dedicated fiscal sponsorship bank account. You will invoice us for the Total Amount of Grant Money minus the 5% Fiscal Sponsorship fee and we will pay that money to you by check.
Step 5: When the grant activities have been completed (for small grants) or at intervals during the grant period (for larger grants), you will submit reports describing your progress on the grant project to PofA.
FOR MORE INFORMATION
If you are interested in starting a fiscal sponsorship agreement with PofA, or you have any questions, please contact Financial Officer Charlie Conley at email@example.com.