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Fiscal Sponsorship Agreement Template: Terms, Fees & Reporting
Use our free Fiscal Sponsorship Agreement template to formalize nonprofit sponsorship arrangements. Customize, sign, and ensure compliance with tax and governance rules.
FISCAL SPONSORSHIP AGREEMENT FAQ
What is a Fiscal Sponsorship Agreement?
A Fiscal Sponsorship Agreement is a contract between a nonprofit (the sponsor) and a project that lacks tax-exempt status, allowing the project to receive tax-deductible donations under the sponsor’s oversight.
Why is a Fiscal Sponsorship Agreement important?
It provides access to charitable funding for projects without 501(c)(3) status, while ensuring compliance with IRS regulations. It also clarifies responsibilities, reducing risks of mismanagement or legal disputes.
When should you use a Fiscal Sponsorship Agreement?
Use it when a project seeks funding and charitable legitimacy but is not yet incorporated or recognized as tax-exempt. It is common for start-up nonprofits, community initiatives, and pilot programs.
What should a Fiscal Sponsorship Agreement include?
It should define the sponsor’s responsibilities, project oversight, donation handling, fund disbursement, reporting requirements, termination rights, and compliance with nonprofit law.
What are the types of fiscal sponsorship?
The two most common models are:
Comprehensive (Model A): The project becomes an internal program of the sponsor.
Pre-Approved Grant (Model C): The sponsor re-grants funds to a separate entity running the project.
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