Fiscal sponsorship provides a valuable tool for charitable entrepreneurs to realize their vision by working with an established charity that takes in tax-deductible donations and private-foundation grants to fund their charitable activities. This chapter of Mastering Foundation Law: The Council on Foundations Compendium of Legal Resources focuses on the basic elements of fiscal sponsorship, the predominant models and their relative advantages and disadvantages, and the mechanical aspects involved.
While many private foundations are registered 501(c)(3) charities, depending on what type it is (e.g., private non-operating, operating, exempt operating foundation), a grant to that private foundation may be prohibited under the tax code. Or is a private foundation seeking to make a grant to your charity for purposes of satisfying its annual distribution? For these and other matters pertaining to grants to and from private foundations, continue on here.
In-Depth knowledge on Grants to and from Private Foundations
Review of first tier excise tax rates for private foundations.
May corporate grantmakers make grants to units of government such as public schools or local parks departments?
Outlines the difference between making grants through direct-giving programs and corporate foundations.
Making grants to dissolving organizations and what happens to unspent grant money if the organization does dissolve.
May a corporate foundation allow corporate board members who do not sit on the foundation’s board to designate grants from the corporate foundation?
The legal and tax implications for community foundations accepting donations from private foundations, and qualifying distributions of taxable expenditures. Additional insight into converting a private foundation into a supporting organization of a community foundation.
Frequently asked questions about private foundation rules for making grants to supporting organizations.