Fiscal Sponsor Organizations

  • 1.  Sponsoring an LLC's fundraising event

    Posted 05-22-2024 20:48

    I have a quick Model C sponsorship question. We have been approached by an LLC business who plans to hold and event, during which they plan to raise funds to give to a nonprofit who is aligned with their work. They have a couple of businesses who are interested in providing sponsorships for the event, but can only give their funds to a 501c3. The LLC has asked us if we can be a fiscal sponsor just the event, if the LLC plans to use the sponsorships to help pay for the event and they give the remainder of any proceeds to the nonprofit. I'm trying to figure out if the event itself has enough of a "charitable purpose" if it's just raising funds to support a mission-aligned nonprofit. Has anyone been asked to do this before?



  • 2.  RE: Sponsoring an LLC's fundraising event

    Posted 05-24-2024 13:35
    I’m kind of unsure why they’re not just working with the nonprofit they want to give money to? If they just want to give money, they can direct people directly to the nonprofit’s website. If they want to hold an event that is paid for by the donations, they could maybe sign on as a consultant for the nonprofit to help them put on the event? Also, this sounds way too much like a pass through to me: how would you as a fiscal sponsor fulfill discretion and control when the only requirement is pass it on to another nonprofit who has not signed a contract with you, didn’t ask for this kind of relationship, and has no obligation to you?


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