FISCAL RECEIVERSHIP

What is Fiscal Sponsorship?

Fiscal Sponsorship is a fundraising tool.  It is an alternative to establishing your own 501 (c)(3) nonprofit corporation. It allows

visual, performing and literary artists who have a non-commercial project to apply for funding from agencies, corporations,

businesses and individuals that require you to have nonprofit status.  2cc provides a tax deduction for your donors.

As your fiscal sponsor, 2cc serves as the nonprofit tax-exempt umbrella organization that accepts and administers contributions

made to your project. 2cc is legally responsible for the funds received on behalf of fiscally sponsored projects and must insure

that the funds are used for activities as agreed upon between the donor and the recipient, and that the donor reporting

requirements are met and in a timely fashion.

Fiscal sponsorship broadens your opportunities of pursuing funding for your project.  2cc will not infringe on your creative control

of your project, nor do we assume any ownership of the rights.

Eligibility & Considerations

In order to be eligible to apply to the 2cc Fiscal Sponsorship Program, you must meet the following criteria:

• Your project must be a creative or community related project.

• Your project must correspondent to 2cc's mission

• You must be a U.S. citizen with a Social Security number or have a U.S. Federal ID #

(FEIN).

• The project proposal should reflect the ability to develop a high quality project.

Review Criteria

• Relevance of the subject matter and whether the project meets 2cc's mission.

• Clearly written proposal.

• Budget that is realistic for the project.

• Fundraising ability and identification of potential appropriate sources of funding for the project.

• Experience of key project personnel associated with the project and their feasibility of completing the project.

What We Provide

• Repository for all funds issued to you

• Tax donation receipt for donors

• Bills paid within 15 days of receipt.

• Detailed record keeping

• A monthly financial report.

Your Responsibilities:

• supply a valid social security or tax ID information to 2cc prior to accepting any funds

• use the funds only for the project purpose for which they were intended

• credit 2cc as a fiscal sponsor in your project credits

• understand that 2cc will report all funds received and paid on behalf of the

project to the Internal Revenue Service and it is your responsibility to pay

any taxes due on the funds

• In the case that a granting organization/individual produces a check

payable to the wrong party, the fiscal sponsorship recipient assumes

the responsibility of following up with the granting party to ensure that

they make a new check payable to 2cc.

• The initial fiscal sponsorship agreement is valid through a predetermined expiration

date at which time the sponsorship receiver may seek to renew the fiscal

sponsorship.

Administration Fee

• A non-refundable $50 application fee.

• A  service commission of 5% of all funds received.

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Application Process

The following material must be included in your Application Package to our Fiscal

Sponsorship Program:

• Contact Information

Name

Full Address

Email

Phone

Website if available

Name of Project

• Project Proposal (see guidelines below).

• $50 Non-Refundable Application Fee

• References.  Please include a contact list (phone and email addresses

only) of two personal or professional references.

Proposal Guidelines

• The proposal you submit to 2cc should look similar to what you will submit to funders.

• Your proposal should be typed and written clearly and precisely.

• Please remember that your proposal is a strong indication to 2cc of your abilities as a

project director and on the quality of the finished project.

• The essential parts of any proposal are listed below. While your proposal may differ slightly in format and

length, your proposal to us must address all the questions listed.

INTRODUCTION

Describe why your project is important and sum up what you are trying to do in a sentence or two.

PROJECT DESCRIPTION

This section be no more than 1 page in length.

It should describe the project, address why is the project needed/important and how you become involved with it?

Have there been other projects on the same topic? If yes, how is yours different and why is it needed?

LENGTH OF TIME YOU ANTICIPATE NEEDING A FISCAL RECEIVER

FUNDRAISING STRATEGIES

How are you going to fund this project?

Give specific names of foundations, corporations and agencies that you will be applying to for your project.

Include a comprehensive list of potential donors that specifies the amounts you are planning on requesting from the sources you

identified.

Be certain to detail any funds you have already received or that are secured.

The total amount listed must add up to or exceed the total amount of your budget.

Be sure to explain if you are going to individual donors for solicitations, or if you are planning a fundraiser.

If available, please include information on other projects you have successfully raised funds for and the funders you have received

funds from in the past.

Applications without a thorough fundraising plan will not be considered.

If you have not already identified appropriate sources of funding for your project, please apply at a later date once you have a

complete fundraising strategy.

STRATEGIES

Who is your primary audience and how will you reach them?

Funders want to see who will benefit from the work they fund so be sure you are as specific as possible in this section.

It is extremely important to include detailed information.

What venues, distributors or alternative strategies will you use and why?

BUDGET

Provide a total budget.  Try to be as realistic as possible.

Consider the viability of the project and it's fundability.

Make sure your budget is consistent with your narrative.

PERSONNEL BIOGRAPHIES

Even if this is a very personal project, projects are often a group effort.

Funders want to know the credentials of those working with you.  If you do not

have previous experience, make sure the rest of the

personnel associated with the project are highly qualified.

Try to consider how you would feel giving money to someone without a track record, and then plan the

rest of your team accordingly to bolster your proposal.

Include a comprehensive bio for yourself and all additional primary personnel.

Additional Questions

After reviewing this material, if you have any additional questions, please contact Cheryl Bennett at 2ndcitycouncil@earthlink.net