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.
Collaboration is an effective way for foundations to increase their impact and engage a broader audience on a key issue. Whether your foundation partners with private sector, government, or even another foundation, philanthropy is uniquely positioned to fuel innovative strategies and improve alignment of investments to enhance collective impact around a shared mission.
In-Depth knowledge on Partnerships & Collaboration
This chapter discusses the federal tax laws governing supporting organizations. As a result of the Tax Reform Act of 1969, private foundations receive considerably less favorable treatment under tax law than public charities. Supporting organizations are a hybrid of private foundations and public charities that generally enjoy more favorable tax treatment than private foundations because they are exempt from many of the excise taxes imposed on private foundations.
Should your supporting organization change its status to an independent public charity.