Fiscal Sponsorship & Incubation

How Fiscal Sponsorship and Incubation Go Hand-In-Hand at Charitable Ventures

Fiscal sponsorship is a relationship between a 501(c)3 nonprofit and an emerging project that needs administration and management, but that doesn’t yet have its own tax exempt status. Often these projects are “testing a concept” on the philanthropic market, or trying to meet a critical need in the community, and they need a safe space to do so.

When a project begins to move toward a successful launch of independent operations, you can feel it. There is nothing more exciting than seeing an “idea” become a viable and sustainable effort on behalf of the community. At Charitable Ventures, we believe sponsorship (e.g. fiscal agency) and incubation (e.g. technical assistance and training) are two very different types of support that we offer to all our projects.

The Power of Fiscal Sponsorship

Fiscal sponsorship is a relationship between a 501(c)3 nonprofit and an emerging project that needs administration and management, but that doesn’t yet have its own tax exempt status. Often these projects are “testing a concept” on the philanthropic market, or trying to meet a critical need in the community, and they need a safe space to do so. Small projects with start-up budgets could easily spend as much as 20 – 40% of their operating budget on management and compliance issues. On our platform, projects keep 91% or more of all the funds they raise for staff and programs, letting Charitable Ventures to take care of the rest.

fiscal-sponsorship

The Role of Incubation

When a project begins to move toward a successful launch of independent operations, you can feel it. There is nothing more exciting than seeing an “idea” become a viable and sustainable effort on behalf of the community. More than just sponsorship, these projects need coaching and technical assistance to build the infrastructure that will ensure their business success. Incubation is about systems development, financial planning, organizational design, and long-term sustainability. Charitable Ventures staff work side-by-side with our project leaders to make sure they have the resources to succeed once they leave our platform.

nonprofit-incubator

If you are interested in sponsorship and incubation with Charitable Ventures, apply now so we can discuss what a partnership could look like.

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