Fiscal Sponsorship FAQ

A fiscal sponsor is a 501(c)(3) organization that agrees to accept and be responsible for grant monies and tax deductible donations on your behalf.   Boulder County Arts Alliance is a fiscal sponsor.

To offer prospective donors a tax deductible option and qualify for some grants requiring 501(c)(3) status. In effect, you or your organization operates as a 501(c)(3) without having to submit the application for the 501(c)(3) or meet the IRS requirement.

An IRS approved 501(c)(3) organization. In Boulder County, the Boulder County Arts Alliance acts as a fiscal sponsor for approved individuals and art organizations.

See the BCAA Fiscal Sponsorship Application Guidelines.

The fiscal sponsor is responsible for receiving and safeguarding your grant funds. Furthermore, the fiscal sponsor is legally obligated to:

• maintain separate records of disbursements related to your organization
• keep receipts for at least three years following receipt of the grant
• make financial records available to the foundations upon request
• disburse funds in accordance with the purpose of the grant application

• You will not have direct control over the funds. BCAA, as your fiscal sponsor, will deposit your grant funds and donations and disburse your funds.
• It will be your responsibility to follow up with the appropriate representative of the fiscal sponsor organization to understand the requirements to maintain your fiscal agency status.
• You will be responsible for submitting grants to your fiscal sponsor (BCAA) two weeks prior to the submission date.

You must designate the fiscal sponsor at the time of your original grant application. In general, foundations will not consider requests to appoint a fiscal sponsor after an award has been made.

You can learn more at Wikipedia by clicking here.

There is also a one-hour webinar at GrantSpace.org titled Fiscal Sponsorship for Artists and Arts Organizations.

Other resources:

• foundationcenter.org/getstarted/tutorials/fiscal

• fiscalsponsordirectory.org

• fiscalsponsorship.com