Grants for Fiscal Sponsors and Their Sponsored Projects
Funding sources for fiscal-sponsorship organizations and the projects they host, including capacity grants, infrastructure funding, and access to grants normally restricted to 501(c)(3) applicants.
Fiscal sponsors are 501(c)(3) organizations that hold tax-exempt status on behalf of unincorporated projects, charging an administrative fee in exchange. Both the sponsor and the sponsored project have grant access, but the funding pathways differ.
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Common questions about grants for fiscal sponsors
Can a fiscally-sponsored project apply for federal grants?
Yes. Federal grant applications are filed in the fiscal sponsor's name (because the sponsor holds the EIN, audit, and 501(c)(3) determination). The sponsor and project must agree on indirect-cost recovery, audit cost-sharing, and reporting responsibilities up front. Most federal awards work fine with fiscal sponsorship as long as the sponsor signs the assurances and accepts the federal obligations.
Do foundations accept fiscally-sponsored applicants?
Most do, though policies vary. The application is in the sponsor's name with the project as the implementing partner. Some foundations require the sponsor to be the legal grantee and prefer the sponsor have a multi-year track record. A small number of foundations (less than 10% in our experience) decline fiscally-sponsored applications outright; this is usually disclosed in their guidelines.
How much does fiscal sponsorship typically cost?
Most fiscal sponsors charge a 5-10% administrative fee on gross revenue passing through. Comprehensive sponsors (Model A — direct project) typically charge more than grantor-style sponsors (Model C — separate-entity grantmaking). The fee covers accounting, HR if applicable, audit allocation, and grant compliance support.
Are there grants for fiscal sponsors themselves?
Yes. The National Network of Fiscal Sponsors (NNFS) and capacity-building foundations periodically fund operational support, technology modernization, and field-building for fiscal sponsors. The Mott Foundation, Tipping Point Community, and several community foundations have funded fiscal-sponsorship infrastructure work.
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