Fiscal Sponsorship
Fiscal Sponsorship is an arrangement where an established nonprofit organization supports a new or smaller project that hasn't yet received its own nonprofit status. Think of it like a nonprofit 'umbrella' that provides legal and financial oversight. This allows new initiatives to accept tax-deductible donations and apply for grants under their sponsor's nonprofit status. It's a common practice in the nonprofit sector that helps new projects get started without the immediate need to set up their own 501(c)(3) organization. Similar terms include "fiscal agency," "nonprofit incubator," or "nonprofit umbrella."
Examples in Resumes
Secured $500,000 in grants through Fiscal Sponsorship partnerships
Managed Fiscal Sponsor relationships for three community initiatives
Developed Fiscal Sponsorship agreements and oversight procedures for emerging nonprofits
Typical job title: "Fiscal Sponsorship Managers"
Also try searching for:
Where to Find Fiscal Sponsorship Managers
Professional Associations
Job Boards
Online Networks
Example Interview Questions
Senior Level Questions
Q: How would you evaluate potential fiscal sponsorship relationships?
Expected Answer: Should discuss assessment criteria like mission alignment, financial stability, compliance requirements, risk management, and capacity to support sponsored projects. Should mention creating clear agreements and exit strategies.
Q: How do you ensure compliance across multiple sponsored projects?
Expected Answer: Should explain monitoring systems, regular audits, reporting procedures, and how to maintain separate accounting for different projects while ensuring overall organizational compliance.
Mid Level Questions
Q: What are the key components of a fiscal sponsorship agreement?
Expected Answer: Should mention administrative fees, responsibilities of both parties, reporting requirements, grant management procedures, and terms for ending the relationship.
Q: How do you handle grant reporting for sponsored projects?
Expected Answer: Should discuss tracking systems, documentation requirements, coordination with sponsored projects, and ensuring timely and accurate reporting to funders.
Junior Level Questions
Q: What is fiscal sponsorship and why is it important?
Expected Answer: Should explain the basic concept of fiscal sponsorship as a way for new projects to operate under an established nonprofit's tax-exempt status, and its role in helping new initiatives get started.
Q: How do you track expenses for sponsored projects?
Expected Answer: Should describe basic accounting practices for keeping sponsored project finances separate, recording expenses, and maintaining proper documentation.
Experience Level Indicators
Junior (0-2 years)
- Basic nonprofit accounting
- Grant tracking
- Document management
- Basic compliance understanding
Mid (2-5 years)
- Project management
- Grant reporting
- Relationship management
- Compliance monitoring
Senior (5+ years)
- Risk management
- Strategic planning
- Legal compliance oversight
- Multiple project coordination
Red Flags to Watch For
- No understanding of nonprofit compliance requirements
- Lack of experience with grant management
- Poor communication or relationship management skills
- No knowledge of nonprofit accounting practices
