Fiscal sponsorship

Use of a nonprofit's tax-exempt status by an unincorporated group

Fiscal sponsorship refers to the practice of non-profit organizations offering their legal and tax-exempt status to groups—typically projects—engaged in activities related to the sponsoring organization's mission. It typically involves a fee-based contractual arrangement between a project and an established non-profit. Originally, this concept was developed at the request of the Department of Housing and Urban Development to enable distribution of funds to local charitable groups in the 1950s and has been a practice ever since.

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