Fiscal sponsorship provides access to restricted funding, grants, tax-deductible donations, and other valuable project management benefits

For small, early stage, or innovative nonprofits with limited capacity, fiscal sponsorship allows leaders to focus on project design and implementation while we take care of compliance. The ability to test new projects in a supportive, trusting relationship is an important aspect of any social innovation ecosystem. New Sun Rising seeks to reduce friction between the work required to manage your funds and implement your idea.

In addition to the traditional fiscal sponsorship benefits of 501(c)(3) status, New Sun Rising offers capacity building, mentoring, grant application support, strategic networking, consideration of funding options, and advocacy for your project.

As a member in our fiscal sponsorship program, you will…
  • Become a project of New Sun Rising’s 501(c)(3) status with the ability to accept grants and donations
  • Receive grant application support, donation and grant processing, and tax document compliance
  • Attend advising sessions with staff through open office hours
  • Utilize our Budget Management System technology for ease of fund requests, distribution, and tracking
  • Access to payroll services, liability insurance, consulting, bridge loans, and more (additional fees may apply)

Please read the sections below prior to selecting the “Apply for Fiscal Sponsorship” button. Please know that once you start the application process, we HIGHLY recommend to use the save and continue option often. Simply press the ‘choose to save and continue’ link to save your application for up to 29 days. 

Click here to begin your application

Please provide as much detail as necessary. Our Fiscal Sponsorship Committee is looking for well-thought-out plans.

Be sure to have key team resumes and budget ready to attach.

Vibrancy Rubric for selection of projects

Fiscal Sponsorship Application Questions (Informational Purposes Only)

Example of a simple budget

What is Fiscal Sponsorship?

Getting incorporated and tax exempt takes money, time & energy, and may distract people from the program they are creating. As an alternative, people who have a new project, or an idea for one, often turn to a Fiscal Sponsor to get it off the ground.

A Fiscal Sponsor is a non-profit organization with 501(c)(3) tax-exempt status from the Internal Revenue Service that acts as a guardian of grants and donations for a Project that does not have 501(c)(3) designation.

A Fiscal Sponsor is necessary for one good reason: funders rarely (if ever) make donations to anyone without 501(c)(3) status. That’s because tax-exempt status, like incorporation, bylaws and other formal designations, inspires confidence in potential donors & funders. It demonstrates that the organization has a legitimate charitable purpose, has a structure for accomplishing its goals, and is accountable to the public.

Foundations, and sometimes governments simply cannot give grants to projects without a 501(c)(3). Individuals often prefer to give to 501(c)(3) organizations so they can deduct the charitable donation on their annual tax return.

Who Needs a Fiscal Sponsor?

Situations that could call for a Fiscal Sponsor include:

  • Organizations or projects that can deliver programs effectively, but don’t have support staff
  • Projects that are short term, or temporary, that wish to avoid the time and expense of applying for a 501(c)(3)
  • Pilot projects, that haven’t demonstrated long term viability
  • Organizations that are awaiting, but have not received 501(c)3 status
  • Social Enterprises & Creative Community Projects which would like to apply for grants requiring 501(c)(3) status

How do I sign up for Fiscal Sponsorship?

Step 1

Full applications are due by the end of the month on a rolling basis. If you meet this deadline, you will receive a decision by the 20th of the next month. Please note that our review process includes a staff review for mission fit, then is evaluated by a committee, with final evaluation and approval by the New Sun Rising Board of Directors.

Our review process focuses on the application, so please be thorough and submit a complete application.  We will not reach out to clarify questions raised at any point in the process.  We want to see if your application can be ready for funding, and often, you will not be able to clarify/speak to Board members of grantmakers.

Step 2

If selected, you will pay your membership fees, sign up for the website, and attend an onboarding meeting to go over our fund request site. Please see the application for definitions and specific costs (from $55/month for membership and 10% admin fee).

Step 3

Once accepted, you will receive a membership agreement and policy manual to sign and return, an invoice for a monthly or yearly membership, a New Sun Rising logo file, an onboarding meeting invitation, a donation and project page, and a resource guide.

Step 4

You will have access to the resource guide, open office hours, reduced-rate consultation*, payroll services*, general liability insurance*, and more.

*requires additional application/fees

What Does A Fiscal Sponsor Do?

At the least, Fiscal Sponsors manage specific grants and donations made to a sponsored Project, while compiling and submitting year end tax reporting to the IRS for Projects who are not yet incorporated at the State level.

Restrictions on Activities

501(c)(3) organizations are highly regulated entities. Strict rules apply to both the activities and the governance of these organizations. Qualifying under Section 501(c)(3) offers significant benefits:

  • Exemption from payment of federal income tax (for non-for profit entities)
  • Exemption from payment of federal unemployment tax (for non-for profit entities)
  • Reduced postal rates
  • Tax deductions to contributors for their donations

Perhaps most important, most foundations and other grant makers will only give grants to 501(c)(3) non-profits. Federal tax exempt status provides them with some assurance that the organization serves a legitimate charitable purpose, is not organized for someone’s personal benefit, and has at least a basic level of accountability. Tax-exempt status under Section 501(c)(3) also imposes significant responsibilities:

Limits the organization’s purpose and activities

Must be organized and operated exclusively for the exempt purpose. New Sun Rising is a charitable organization.

Limits lobbying activities

May not include lobbying (influencing legislation) as a substantial part of its activities

Prohibits political activities

Cannot be directly or indirectly participating or intervening in, any political campaigns for public office. Contributions or public statements of position made on behalf of an organization in favor or against any candidate is clearly a restricted activity.

Prohibits excessive financial benefits to its directors and employees

No part of the activities or the net earnings can unfairly benefit any director, officer, or any private individual, and no officer or private individual can share in the distribution of any of the corporate assets in the event the organization shuts down

Requires tax returns

Requires many records be open to public scrutiny

Restricts certain distribution of assets if the organization is dissolved

Fiscal Sponsorship Resources