Fiscal Sponsorship
Allied Arts Foundation's Fiscal Sponsorship program provides 501(c)(3) alignment for mission-aligned cultural projects so that donors may receive a tax deduction for their support.
What is Fiscal Sponsorship?
Fiscal sponsorship is a contracted agreement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. It is an alternative to starting your own nonprofit, and it allows artists to seek grants and solicit tax-deductible donations under Allied Arts Foundation’s exempt status.
Any money you receive through your fundraising is still considered income by the IRS and must be reported on your annual tax return.
Groups registered with their state as a nonprofit organization may use their Federal Employment Identification Number (EIN) for tax reporting purposes, rather than a personal social security number.
Our type of sponsorship falls under Model C (Preapproved Grant) for those following Colvin & Petit’s fiscal sponsorship categories.
Why would I need it?
Having a fiscal sponsorship means that you can hold fundraisers for your arts project, and any donations (including in-kind materials and some services) to your project are tax deductible for the donors.
This can be very attractive to donors, and it is a benefit that Kickstarter cannot provide.
Some grant sources also require artists to have 501(c)(3) fiscal sponsorship before applying.
Do you provide a list of donors?
No. Unfortunately we do not have a list of private donors waiting to fund art programs. For those living in Washington State, we recommend starting at Artist Trust’s Funding and Training Resources for Artists.
But we can provide you with access to online resources helping you search for grant prospects.
Cost
Allied Arts Foundation charges a 10% fee for funds raised up to $15,000 annually, and 5% thereafter.
We also deduct any credit card fees, PayPal fees, or other bank fees before distributing your funds.
Accepted Credit Card Donations
For those who are actively fundraising, we can provide you with one free wifi card reader to accept donations via VISA, MasterCard, Discover, and AmEx credit cards.
Donations go directly to Allied Arts Foundation for immediate processing. An additional small processing fee applies.
Who is eligible?
We provide fiscal sponsorship for artists and arts organizations throughout the U.S., including:
Artists and arts organizations seeking long-term sponsorship
Artists requiring short-tem sponsorship only for the duration of a particular project
Arts organizations seeking a sponsorship bridge between the time they apply for and receive their own 501(c)(3) status.
Projects or organizational mission must have an arts-related component.
Eligibility is determined on a case-by-case basis.
Guidelines & Application
Download our current Sponsorship Application Guidelines here.
Our Sponsored Artists
Allied Arts Foundation proudly sponsors over 40 artists and arts organizations. See them all at our Artists & Organizations page.