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What is Fiscal Sponsorship?
Fiscal sponsorship allows individuals and organizations undertaking activities that are nonprofit in nature to raise funds for these activities, in part, through tax-deductible, charitable contributions. Activities may be defined as nonprofit in nature when they are undertaken for the greater good of the public and community, rather than for the financial benefit of individuals or shareholders.
BAC offers fiscal sponsorship to individuals and organizations for cultural projects with strong artistic merit that align with our mission.
About Fiscal Sponsorship
Projects that BAC supports through fiscal sponsorship generally fit into one of the following categories:
By acting as a fiscal sponsor, Brooklyn Arts Council makes it possible for foundations, corporations, government agencies and individual donors to support such non-commercial projects through tax-deductible, charitable contributions.
BAC strongly encourages those interested in fiscal sponsorship to learn more by attending a workshop through Volunteer Lawyers for the Arts (wwwvlany.org), or through independent research.
- Artistic projects in any discipline that are undertaken by Brooklyn-based individual artists or collectives; projects can take place in Brooklyn or elsewhere
- Artistic projects in any discipline that are undertaken by individual artists or collectives who are not Brooklyn-based, but take place in Brooklyn or benefit Brooklyn residents
- Activities of Brooklyn-based cultural organizations that are in the process of incorporating as nonprofits
- Specific cultural projects undertaken by for-profit organizations, that are nonprofit in nature and demonstrate strong benefit to Brooklyn residents
By acting as a fiscal sponsor, Brooklyn Arts Council makes it possible for foundations, corporations, government agencies and individual donors to support such non-commercial projects through tax-deductible, charitable contributions.
BAC strongly encourages those interested in fiscal sponsorship to learn more by attending a workshop through Volunteer Lawyers for the Arts (wwwvlany.org), or through independent research.
What services does BAC provide through its Fiscal Sponsorship Program?
Brooklyn Arts Council runs a small fiscal sponsorship program in an effort to provide individualized attention to sponsored projects and the people who lead them.
Services include:
Brooklyn Arts Council runs a small fiscal sponsorship program in an effort to provide individualized attention to sponsored projects and the people who lead them.
Services include:
- Accepting tax-deductible contributions from foundations, corporations, government agencies and individuals
- Sending tax acknowledgment letters
- Assistance tracking grant reporting obligations and deadlines
- Accepting credit card contributions from individual donors through our website (includes additional processing fees)
- Consultation on project management and development, including fundraising guidance through reviews of fundraising plans and proposals
- On a case-by-case basis, providing additional promotional assistance through our digital communications
- Connecting leaders of fiscally sponsored projects to the many other programs and services we offer
What does BAC charge for this service?
- BAC generally keeps 5% of all funds accepted on behalf of fiscally sponsored projects, unless a different fee is dictated by a specific funding agency. (New York State Council on the Arts, for instance, currently requires organizations providing fiscal sponsorship for Individual Artists grants to keep 7%).
- Should BAC incur any additional fees related to a fiscally sponsored project, for instance, for processing credit card contributions, or bank fees for donors’ bounced checks, these will be deducted from project income, as well.
How do I apply?
BAC requires applicants to complete our online Fiscal Sponsorship application form and submit it electronically. CLICK HERE to access the application.
As part of the online application process, Brooklyn-based applicants will be required to join BAC’s Artist Registry or Directory of Arts Organizations. In addition to providing free, online promotional support, these databases support our advocacy efforts, and allow us to stay in touch with information on funding opportunities, calls for entry, and a variety of programs and services. All applicants will be able to designate the specific categories of information they’d like to receive from BAC.
Applications can be completed and submitted at any time. All applications received by the last of day of the month will be reviewed by the 15th of the following month by an internal panel of BAC staff members. Applicants will be notified of the panel’s decision within two weeks of the review.
The review panel will assess applications based on:
BAC requires applicants to complete our online Fiscal Sponsorship application form and submit it electronically. CLICK HERE to access the application.
As part of the online application process, Brooklyn-based applicants will be required to join BAC’s Artist Registry or Directory of Arts Organizations. In addition to providing free, online promotional support, these databases support our advocacy efforts, and allow us to stay in touch with information on funding opportunities, calls for entry, and a variety of programs and services. All applicants will be able to designate the specific categories of information they’d like to receive from BAC.
Applications can be completed and submitted at any time. All applications received by the last of day of the month will be reviewed by the 15th of the following month by an internal panel of BAC staff members. Applicants will be notified of the panel’s decision within two weeks of the review.
The review panel will assess applications based on:
- Artistic merit
- Feasibility of project, budget and fundraising plan
- Managerial competence
- Where applicable, proposed benefit to the Brooklyn community
- Evidence of past success of project leaders
What happens if my project is accepted?
Once projects are accepted, Brooklyn Arts Council enters into a contractual agreement with the leader(s) of the fiscally sponsored project. Brooklyn Arts Council will meet with project leaders to discuss details of the project and contract before the agreement is finalized.
The fiscal sponsorship contract is valid for one year, after which it is eligible for renewal.
As explained in the contractual agreement, leaders of fiscally sponsored projects will need to follow certain reporting requirements and procedures when soliciting funds, and for requesting fund disbursements and fulfilling grant obligations once funds are raised. Project leaders will be expected to stay in close coordination with Brooklyn Arts Council, especially during active fundraising periods.
In most cases, Brooklyn Arts Council will deduct its fee from contributions for fiscally sponsored projects, and send a check for the balance directly to the main project leader, who then pays project expenses directly.
Brooklyn Arts Council will inform project leaders of contributions received on behalf of their project as they come in, and will send tax acknowledgement letters directly to donors. Copies of correspondence to and from donors will be sent to project leaders.
Leaders of fiscally sponsored projects are expected to keep accurate records of their expenses and bills paid, and to track funds raised and payments made against their accepted project budget. They will also be responsible for filing related tax returns, complying with federal regulations such as employment taxes, and acquiring any necessary insurance, legal or fiscal assistance for their projects.
Once projects are accepted, Brooklyn Arts Council enters into a contractual agreement with the leader(s) of the fiscally sponsored project. Brooklyn Arts Council will meet with project leaders to discuss details of the project and contract before the agreement is finalized.
The fiscal sponsorship contract is valid for one year, after which it is eligible for renewal.
As explained in the contractual agreement, leaders of fiscally sponsored projects will need to follow certain reporting requirements and procedures when soliciting funds, and for requesting fund disbursements and fulfilling grant obligations once funds are raised. Project leaders will be expected to stay in close coordination with Brooklyn Arts Council, especially during active fundraising periods.
In most cases, Brooklyn Arts Council will deduct its fee from contributions for fiscally sponsored projects, and send a check for the balance directly to the main project leader, who then pays project expenses directly.
Brooklyn Arts Council will inform project leaders of contributions received on behalf of their project as they come in, and will send tax acknowledgement letters directly to donors. Copies of correspondence to and from donors will be sent to project leaders.
Leaders of fiscally sponsored projects are expected to keep accurate records of their expenses and bills paid, and to track funds raised and payments made against their accepted project budget. They will also be responsible for filing related tax returns, complying with federal regulations such as employment taxes, and acquiring any necessary insurance, legal or fiscal assistance for their projects.
