Fiscal Sponsor Organizations

for the most part our tiered strucutre is based on annual revenue to the project is resets each year when we put a new fiscal sponsorship agreement in place. Generally speaking we do:
9% on 0-$500k
8% on $500k-$1m
7% on $1m+

There is room for exception and in some cases we have done a one-time decreased fee on a single large donation but in general we try to be consistent

Our fiscal fee is 6.5% regardless of revenue type or amount. While projects may make a case for a negotiated/tier rate due to a single high value transaction on the revenue side, the disbursement of $1M can result in a lot of A/P with contractors, employees, complex payments, small reimbursements transactions, etc.

That's a really good point, . Even though it may look simple as one large inbound transaction, it's all of the outbound transactions that are going to cost your team time and money.

We do 10% across the board for Model A and 8% for Model C because we are not extending our insurance. Josh's sliding scale is a great idea!

We have a similar structure to what Josh described. Has anyone seen a model that is based on something other than revenue received?

Hi - In my experience, assessing a cost on incoming revenue is by far the most common approach to fiscal sponsor cost recovery. I'd estimate 90%+ of professional sponsors use this approach.

Within that bucket, I've seen sponsors that:
• have a flat fee percentage no matter the amount revenue (like Jennifer described at SEE)
• have a graduated percentage that starts higher and goes lower as revenue increases (like Josh described at Mission Edge)
• have a graduated percentage that starts lower and goes higher as revenue increases


And there are other ways that it can be done. The most common I've seen are:
• a percentage cost charged against *expenses* (rather than revenue)
• a flat annual/monthly/quarterly fee (this is rare, but it happens)


Of course when it comes to negotiating rates in grant agreements (government or otherwise), that can open up another whole can of worms...

Thanks, Andrew!

Project admin fees reduce by 1% for every 500K of revenue during a calendar year. Tiering resets annually. In practice, this is what it look like for a Model A project:
$0 - $500K, 8%
$500K - $1M, 7%
$1M - $1.5M, 6%
The tiering continues to step down each $500K to a minimum of 3%.

With your pricing model, Oliver, what is included for the FSO/FSP?

not sure I'm understanding your question, sorry?!

I apologize for the confusion. To clarify, I was asking about the types of services your company offers. For instance, do you provide HR, bookkeeping, insurance, and/or any other services?