Fiscal Sponsorship Agreement

Fiscal Sponsor: [Nonprofit Name, 501(c)(3) status] · Sponsored Project: [Name] · Project Director: [Name] · Date: [Date]

1. Purpose

Fiscal Sponsor agrees to act as the fiscal sponsor for the Project described above, allowing the Project to receive tax-deductible donations and grants under Sponsor's tax-exempt status.

2. Sponsor's Control

Sponsor retains ultimate legal and financial control over funds raised for the Project, including the right to ensure funds are used consistent with Sponsor's exempt purpose and applicable law ("Model A" comprehensive fiscal sponsorship) [or describe an alternative model if used].

3. Administrative Fee

Sponsor retains [%] of funds raised for the Project as an administrative fee, to cover accounting, compliance, and oversight costs.

4. Project Director's Responsibilities

Project Director will manage day-to-day Project activities and submit [Frequency] reports and budget requests to Sponsor.

5. Disbursements

Sponsor will disburse funds for Project expenses upon Project Director's request, consistent with the approved budget and Sponsor's exempt purpose.

6. Term and Termination

This arrangement continues until [Date/the Project obtains its own tax-exempt status/either party terminates with [Notice Period] notice]. Upon termination, remaining funds will be [transferred to Project's new fiscal home, if one exists and Sponsor approves / used consistent with Sponsor's exempt purpose].

Fiscal Sponsor: ______________________ Date: ____________ Project Director: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal or tax advice. Fiscal sponsorship lets a new project accept tax-deductible donations well before it could realistically obtain its own 501(c)(3) status — but the sponsor genuinely must retain control and exercise real oversight (not just pass funds through), or the arrangement risks failing IRS scrutiny for both parties.*