Fiscal Sponsor Organizations

  • 1.  Technical Assistance Arrangements (Model F or C?)

    Posted 03-27-2025 19:13

    Hi all — I’m trying to learn more about Model F technical assistance (specifically, how to set up arrangements with another mission-aligned 501c3 so that a fiscally sponsoring 501c3 can handle accounting for a sponsored 501c3).

    Does anyone have any favorite articles or resources to learn about this? Some of my questions are:

    1. Is this kind of 501c3-managing-books-for-another-mission-aligned-501c3 possible? (Can a sponsor take in funds for another 501c3, manage payments, and complete a 990 accounting for all of that? Can the other 501c3 pay for other aspects of work simultaneously and account for those aspects themselves?)

    2. How is this different from Model A or Model C+ arrangements, if the fiscal sponsor intakes money on behalf of the sponsored 501c3, pays out contracts and manages accounting, and does IRS reporting on those expenditures?


    [I need to revisit 6 Ways to Do It Right to refresh my understanding, but wanted to ask here as well!]



  • 2.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 03-27-2025 20:18
    Hi Lev! When accepting funds for another organization, it falls under our Model C/C+. We never accept funds under Model F, rather the 501c3 pays us a flat monthly fee for technical assistance/monthly support.


  • 3.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 04-03-2025 18:00
    Hi @Lev Greenstein - Just echoing what Amanda shared. Model F (in my opinion) should probably not be considered fiscal sponsorship at all, since it’s really just an outsourced service provider relationship. If your finance team is managing the “client’s” financial systems, they should 100% be separate from your own.


  • 4.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 04-04-2025 19:34
    Hi there - we are exploring a Model F relationship where the existing nonprofits keeps their 501c3 status but does not receive any funds under that EIN. They are responsible for filing an annual postcard and annual state registration.

    They become a model A in all sense of that relationship. They have employees, their board becomes an Advisory Board and we handle all finances etc. The organization is utilizing our services as they regroup or rebuild and then will spin off back into their retained 501c3.

    Some don’t want to lose their identity and in that case model c+ is discussed as Amanda relayed.

    Hope that helps.


  • 5.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 04-07-2025 18:58
    Thanks for sharing, @Cheyanne Sauter. Just to clarify, what you’re describing is a Model A relationship (sometimes called a “spin-in” when an existing c3 moves under FS) and not Model F. Model F is really just outsourced services provided by one c3 to another at below-market rates where both remain separate entities.


  • 6.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 04-14-2025 14:50
    @Andrew Schulman I’ve really appreciated all the responses in this thread! A follow-up question: would receiving income from a mission-aligned peer org (to provide them below-market-rate accounting services) be considered program income for your org, or become ubi?


  • 7.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 04-14-2025 16:40
    Hey @Lev Greenstein - When you get to this level of nuance, you’re best off talking to a knowledgeable attorney or accountant. This is NOT legal or financial advice, but as it’s been explained to me, this is likely non-program revenue, but it would have to rise to a certain level of funds to be classified as UBIT. In other words, if it’s insubstantial to the overall org’s revenue, it may not be considered UBiT, either. This is one of the grey areas so if you go down this path, I’d talk to someone who can speak more to the specifics!


  • 8.  RE: Technical Assistance Arrangements (Model F or C?)

    Posted 04-15-2025 19:11
    Thanks again for the advice and the tip to talk to a nonprofit tax professional! Looking forward to learning more about the nuances.


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