Fiscal sponsorship is an emerging trend in the nonprofit organizational landscape. Fiscal sponsorship refers to the practice of nonprofit organizations offering their legal and tax-exempt status to groups engaged in activities related to the organizations' missions. It typically involves a fee-based contractual arrangement between a project and an established nonprofit. In recent years, fiscal sponsorship has emerged as a more formal nonprofit service, with many organizations making the sponsorship and incubation of projects a core business.
The purpose of this study was to identify current best practices in fiscal sponsor services. Originally intended as an internal report, the Trust decided to publicly release the study when we realized no such analysis was available to the philanthropic and nonprofit communities. However, this paper is only a beginning. We hope it will be useful to the public.