Fiscal Sponsorship

What is Fiscal Sponsorship?

Fiscal sponsorship is a mechanism that allows a tax-exempt, 501(c)(3) organization (the sponsor) to support and protect another group (the sponsored partner). As a fiscal sponsor, Gateway City Live (GCL) is legally and financially responsible for any sponsored partner, so it is critical that the partner organization’s goals align with our mission. If a potential partner’s mission is a good fit, GCL will enter into a written agreement with them.

One of the most common uses of fiscal sponsorship is to enable a sponsored partner to apply for grants and solicit tax-deductible contributions. This reduces the partner’s costs, conserves resources, reduces duplication of personnel, and simplifies organizational functions. Done well, a fiscal sponsorship acts as a proving ground for a new idea or a new nonprofit, while utilizing the administrative resources of the sponsor. Newly formed nonprofit entities may choose to apply through fiscal sponsors while awaiting their 501(c)(3) designation from the IRS.

After reviewing the Process below, use the contact form at the bottom of the page to contact us for more information.

Process for Applying for Fiscal Sponsorship

1. Project Description Submission:

   • Any individual or group seeking fiscal sponsorship must first submit a written description of their project.

2. GCL Board Review:

   • The GCL Board of Directors will review the project description to determine if the project aligns with GCL’s mission.

3. In-Person Meeting and Agreement Signing:

   • If approved, the applicant will meet in person with a GCL representative. During this meeting, a Fiscal Sponsorship Agreement specific to the project will be reviewed, filled out, and signed.

4. Grant Applications:

   • Once the agreement is signed, the applicant may use GCL's name to apply for grants.

5. Donation Processing for Contributions of $500 or More:

   • If any donors contribute $500 or more and request a donation letter for tax purposes, GCL will process the checks and issue the appropriate donation acknowledgment letters.

6. Handling of Smaller Donations (Below $500):

   • GCL will not manage smaller donations (under $500) from donors who do not seek tax write-offs. These smaller contributions, often raised through fund drives, should be managed directly by the applicant, who will be responsible for handling these funds in compliance with tax laws.

7. Disbursement of Funds:

   • GCL will issue a check to the applicant within 10 days of receiving and depositing the funds.

8. Event Reporting and Expense Summary:

   • Within 3 months after the funded event, the applicant must submit a report outlining the event's outcomes and detailing the expenses covered by the funds.

For more information contact us via the Fiscal Sponsorship Form:

Fiscal Sponsorship Form>>