What is fiscal sponsorship?

Fiscal sponsorship is a practice that has evolved as an effective and efficient means of starting new charitable initiatives, delivering public services, or seeding social movements. In a typical fiscal sponsorship relationship, a nonprofit organization confers its 501(c)(3) tax-exempt status to groups that are engaged in activities that align with the host’s mission, typically for a fee. Fiscal sponsor organizations are responsible for assuring the activities of projects fulfill their charitable purpose.

Fiscal sponsor organizations like Tides provide a nonprofit legal framework for their fiscally sponsored partners, support tax-deductible donations to projects, and enable organizations to focus on their mission.

Fiscal sponsorship can offer a valuable alternative to starting a nonprofit. Organizations fiscally sponsored by Tides Center are able to access resources and cost, process, and infrastructure efficiencies created by being part of a collective. Tides has a long history of providing high-quality services and support to the nonprofit community and has sponsored over 1,400 projects throughout our history.