Fiscal sponsorship is a formal arrangement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. This alternative to starting your own nonprofit allows you to seek grants and solicit tax-deductible donations under your sponsor's exempt status.  

 

For more information, please visit the National Council of Nonprofits website.

 

If you are an individual or group and have an arts related project, program or event in mind, please get in touch with the BAAC via email to determine if fiscal sponsorship is an appropriate option for you at admin@benningtonareaartscouncil.org. The next step will be to create a comprehensive project description, timeline and budget. Your application will be more viable if you are able to demonstrate a minimum level of outside project support, or a documented history or success with prior similar projects. This application will need to be approved by the board as a whole and we suggest that you begin this process well in advance of any grant deadlines. Finally, a contract will be offered with specific terms and reporting criteria and which will include a 10% administrative fee.  

 

Sponsored projects are treated as separate legal entities that are responsible for their own tax returns, employment taxes, insurance, debts, liabilities and other legal obligations. Additionally, sponsored projects' choice of funding sources and the text of fundraising materials are subject to the BAAC's prior approval.  

 

An example of a fiscal sponsorship as managed by the BAAC:

Group/Individual “S” would like to bring a musical ensemble to its program but is unable to apply for a grant that would make this financially feasible because they are not a 501(c)(3). Group/Individual “S” applies and signs a contract with the BAAC whereby the Group/Individual can apply for the grant under the auspices of the BAAC.  

 

An example of a project that would not be viable for fiscal management:

Group/Individual “S” would like to collect funds from individuals for general operating expenses without a specific project in mind. 

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