Fiscal Sponsorship

• Fiscal sponsorship is a contractual relationship between a 501(c)(3) nonprofit organization, like ReImagine, and another mission-aligned project or organization. This arrangement allows the sponsored organization to have some of the benefits of being a nonprofit without having to go through filing for nonprofit status itself.
• Fiscal sponsorship can be an efficient and quick way to start a charitable initiative or offer services to the public. Fiscal sponsorship enables access to resources that support infrastructure, operational efficiency and compliance, among other benefits.
• Organizations, independent consultants and consulting and advisory agencies are all eligible to be fiscally sponsored.
• To learn more about fiscal sponsorships, visit the National Council of Nonprofits.

• Each fiscal sponsorship arrangement is unique and is developed to provide the specific benefits needed by the sponsored organization. The contract is developed collaboratively between ReImagine and the sponsored organization and support is provided by ReImagine in return for a fee.
• As a fiscally sponsored organization, donations to your organization will be disbursed to ReImagine, where they are kept in a restricted account and dedicated to supporting your work. ReImagine provides regular financial reports and maintains ultimate responsibility for accounting, tax reporting and compliance. We are also responsible for ensuring the activities of your project fulfill their charitable purpose.

• Any project or organization that is aligned with ReImagine’s mission, values and equity commitments and is looking for the benefits of nonprofit status and infrastructure is a candidate to be fiscally sponsored.

• Fiscal sponsorship allows ReImagine to support mission-aligned projects by providing financial and administrative infrastructure, while ensuring our sustainability as well. Fiscal sponsorship fees create a sustainable revenue stream that directly funds our shared infrastructure, rather than being restricted to a specific project. Providing fiscal sponsorship also allows us to live our commitment to equity and capacity-building.

• Two weeks to two months, depending on the situation. When needed, we can fast-track onboarding based on projects that are responding to urgent needs, but the standard timeline is about 30 days. To compare this with applying for 501(c)(3) status, that process takes between 6-9 months.

We can only support work that advances our own mission (this is an IRS requirement). In practical terms, we ask some questions when considering taking projects:

• Are we drifting from our mission to sponsor this project?
• Could this project damage our reputation?
• Do we have expertise to properly oversee this work?

Yes. The exit process is not automatic and depends on the structure of your fiscal sponsorship. Projects can typically exit with reasonable notice, but assets don't automatically transfer with you. If you are transitioning to a new 501(c)(3), the transfer of legal assets: donor relationships, funds, contracts, intellectual property etc. need to be formally transitioned. Some projects stay because the efficiencies outweigh independence, while others discover fiscal sponsorship was their “test-drive period” to determine if there's actually sustainable demand for their work or while building up staffing capacity and funding.

This happens more than you'd think. Nonprofits often develop ad hoc arrangements to help aligned groups without understanding they've created a fiscal sponsorship relationship. Accidental or informal sponsorship looks like holding money meant for another organization or for a program where the responsible leader has considerable autonomy in decision-making. In this scenario, the informal sponsorship denotes all legal liability and IRS obligations without the proper oversight, agreements or board approval.