What is Fiscal Sponsorship?
IAM is currently accepting applications for fiscal sponsorship, with review conducted by the Board of Directors at our monthly Board meetings.
On this page you can learn about fiscal sponsorship as related to our mission, review our sponsorship contracts and Fiscal Sponsorship Policies & Procedures Manual, affirm your eligibility for sponsorship, and begin the application process.
Everything you need to know about sponsorship with IAM:
What is Fiscal Sponsorship?
“Fiscal sponsorship” is an alternative to starting your own nonprofit and seeking federal tax-exempt status from the Internal Revenue Service.
Instead of becoming a 501(c)(3) nonprofit, fiscal sponsorship creates a formal relationship between the “fiscal sponsor,” a tax-exempt nonprofit, and the sponsored project that (usually) does not have its own tax-exempt status. Through financial and programmatic oversight by the “fiscal sponsor”, the sponsored project is then able to receive grants and tax-exempt donations from governments, foundations, and individuals.
What types of projects does IAM accept for sponsorship?
IAM offers fiscal sponsorship to projects and producers that advance IAM’s charitable purpose as approved by the IRS: to raise the educational and social levels of the residents of the San Francisco Bay Area and surrounding regional and national communities, through the development of non-commercial, educational and cultural media, news and arts projects for the benefit of the general public.
All IAM Affiliates must also advance IAM’s mission to support independent, non-commercial arts and media projects and producers for the purpose of building community and civic participation, and facilitating cultural engagement and free expression.
IAM currently supports over 60 Affiliates dedicated to non-commercial work in media and the arts, including publishing, theater, dance, music, visual art, film and video, radio, mixed media and transmedia, journalism, history, and public-events production and convening.
While most of our Affiliates are in the Bay Area, several are located throughout the United States, including New York, Washington, Florida and Colorado.
What is a “non-commercial” project?
IAM only supports art and media projects that are “non-commercial” in nature – which means that the project cannot have the intent of making a profit for the benefit of the project directors.
Is my project eligible for sponsorship with IAM?
All IAM Affiliates:
- use media, journalism, arts and/or culture to build community participation and engagement;
- empower and sustain independent production; or
- otherwise pursue activities that advance IAM’s mission and charitable purpose.
None of our Affiliates use funding raised through IAM for: (1) lobbying for or against legislation, and (2) participating, directly or indirectly, in a campaign for or against a candidate for public office.
All IAM Affiliates are based in the United States or have a U.S.-based manager of national, regional or local programming.
What services does IAM provide to its Affiliates?
First and foremost, fiscal sponsorship enables our Affiliates to receive tax-deductible donations and grants from individuals and organizations. Depending on the type of sponsorship relationship, affiliated projects may also have access to other resources and services as detailed in the Fiscal Sponsorship Policies & Procedures Manual.
Here is a brief description of some of the services IAM provides to its Affiliates.
- Donation management including IRS-mandated donor confirmation letters
- Ability to receive in kind donations, stock donations and corporate matching grants
- Convenient access to your project’s financial records
- Fundraising and promotional support
- Support for grant applications, administration and reporting
- Discounts on IndieGoGo crowd-funding campaigns
- Vendor bill pay services for all Model A Affiliates (and some Model C’s)
- Referrals for legal, accounting, insurance and other professional services
IAM’s affiliated projects will also have exclusive access to the professional development and advocacy benefits offered through IAM’s participation in the Wavelength Media/Arts program.
What fees does IAM charge for its services?
IAM deducts an administrative fee of 7% fee for all charitable funds received on behalf of its Model C Affiliates, and a 9% fee for all funds received on behalf of its Model A Affiliates, including charitable donations, grants and earned income. Affiliates are also responsible for all other applicable fees, such as PayPal, crowd-funding and bank service fees.
These sponsorship fees help IAM cover the costs of providing Affiliate services, such as donation management, donor confirmation letters and related Affiliate bookkeeping, as well as general expenses related to financial accounting, auditing, insurance, and IRS compliance.
What is the difference between Model A and Model C fiscal sponsorship?
IAM offers two types of fiscal sponsorship – Model A and Model C.
Model A sponsorship is a comprehensive and “Direct Project” relationship where IAM adopts your project into our own organization – as a result, IAM and the Model A Affiliate are legally considered one and the same. IAM provides its Model A Affiliates with a wide range of administrative back-end services, including donor management, bookkeeping, bill pay, tax reporting and insurance.
Model C sponsorship is for independent entities that have a legal, tax and accounting identity separate from IAM. The Model C Affiliate is a “Preapproved Grantee” of charitable funds received by IAM for your project and sponsorship services focus on fundraising support and donor management.
How do I apply for sponsorship with IAM?
Download IAM’s Fiscal Sponsorship Application Form (MS WORD .DOC FILE) and email the completed form with all supporting documents to admin [at] artsandmedia.net. This application is available as a Google Document upon request.
Once your application is received, you will receive a confirmation email from IAM within two business days.
You will also be invited to discuss your project with a member of the IAM Board of Directors before your application is reviewed. Please email us to set up a time for IAM to get to know you and your project better!
When does IAM review applications for sponsorship?
Sponsorship applications are reviewed by the Board of Directors at the regular monthly Board meetings and must be received no later than one-week prior to the meeting.
The Board’s regular monthly meetings in 2015 will be held on:
January 10, 2015
February 18, 2015
March 18, 2015
April 22, 2015
May 20, 2015
June 17, 2015
July 15, 2015
August 19, 2015
September 16, 2015
October 21, 2015
November 18, 2015
The Board of Directors may also consider applications on shorter notice or at times other than the regularly scheduled Board meeting upon request and subject to the Board’s availability, in its sole discretion. In the event that the Board approves any such request for expedited review of an application, the application will be subject to a non-refundable $50 application fee.
How does IAM evaluate applications for sponsorship?
The Board of Directors evaluates applications on the following criteria:
- How well the project fits into IAM’s charitable purpose, mission and values.
- Relevant experience and background of the project’s leaders.
- Compliance with IRS guidelines for activities of 501(c)(3) organizations.
- The specific needs of the project and its organizational framework.
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