Fiscal Sponsorship
We recognize the critical role that social entrepreneurs and changemakers play in creating positive change and strive to support them in their efforts. By providing wrap-around services, sharing resources, and fostering a supportive community, we aim to help these individuals and organizations reach their full potential and build a better future for all.
As a 501c3 organization, NOPI provides administrative services, technical assistance, fiduciary oversight, HR, and (in some cases) insurance to organizations, groups, and individuals engaged in charitable work. We like to explain fiscal sponsorship as a safe and supportive home for nonprofits until if or when the time comes for a nonprofit to go it alone.
Applications for fiscal sponsorship are accepted year-round. Once approved, cohorts are onboarded four times a year in March, June, September, and December.
Fiscal Sponsorship is ideal for:
Individuals and groups forming new nonprofit organizations
Time-specific charitable projects and programs
For-profit businesses engaging in charitable work
Programs responding to an urgent need
Pending or soon-to-be 501c3 organizations
Spin-off programs from other nonprofit organizations
Please read the Common Questions below to determine if Incubation through Fiscal Sponsorship and Technical Assistance is the best fit for your project or program. Contact us if your project responds to an urgent need such as a public emergency so we can expedite the application process.
Models of Sponsorship
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Model A is a direct project relationship. The project belongs to NOPI, and the work is not a legal entity. Your team becomes employees or contractors of our organization to carry out the work of your program. NOPI provides total liability and professional development coverage and files all 990s, payroll tax returns, 1099s, etc.
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Model C is a grantor/grantee relationship. The project applies to NOPI for grants, and in return, NOPI funds the project from money received from donors. As your sponsor, NOPI accepts donations and grants on behalf of your group or organization and distributes these funds to the project as needed.
Under this model, the sponsored organization must:
✔️choose a program name that is distinct from the organization's name,
✔️ incorporate the program as either a nonprofit or for-profit corporation in the United States,
✔️ensure that it is involved in charitable or not-for-profit activities, and
✔️have both general liability insurance and D&O insurance policies in place to protect the program. -
Model F is a Services Provider/Client relationship. Your project has 501c3 status, and NOPI helps with technology, website development, graphic design, bookkeeping, tax returns, payroll, management, event production, and more. Learn more about Technical Assistance here →
Video provided by Propel Nonprofits.
The following FAQ will help determine if your organization, program, or project is a match for sponsorship with NOPI. Please read through each question before applying. Need assistance with the application process? Join us during open office hours on Zoom every Thursday from 11 a.m. to 5 p.m. EST.
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There is no fee for fiscal sponsorship. However, to support your mission, 10% of all contributions, such as donations, grants, sponsorships, and others, will cover administrative costs for your program. Administrative costs include bookkeeping, managing the back office, HR services, payroll processing, technical support, insurance coverage, adherence to state and federal regulations, and the opportunity to access donated and discounted goods and services.
Initial Contribution
Once a project is approved for sponsorship, there is a one-time contribution of $350. This amount is aimed at offsetting the expenses associated with the onboarding process. In some cases, this contribution may be fundraised.
Project Transfer Contribution
To facilitate the smooth transfer of funds and assets between sponsors, we allocate 5% of these funds to cover administrative costs. This helps cover the costs of managing contributions, grant contracts, bank accounts, contractor agreements, and other program assets during transfers.
Fundraising Minimum
To offset the ongoing administrative cost of fiscal sponsorship, projects have a minimum monthly contribution of $100 (waived for programs raising more than $1000 per month).
HR & Payroll
For detailed information on costs and benefits related to program employees and contractors, please click here for more information.
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Nonprofits and charitable programs must be organized and operated exclusively for charitable purposes as set forth by the IRS, including but not limited to:
The organization must not be organized or operated for the benefit of private interests, and no part of a program’s net earnings may benefit any private shareholder or individual.
No substantial part of a program or organization’s activities may directly or indirectly participate in any political campaign on behalf of (or in opposition to) any candidate for elective public office.
Projects with international activities must have primary leadership or a home office inside the United States.
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We do not require applicants to have an advisory board. However, advisory boards help fiscally sponsored organizations thrive. While NOPI's board of directors provides legal and fiduciary responsibility for the project, an advisory board does not have formal legal obligations or decision-making authority. Functions of an advisory board include the annual review of the program director/s, strategic planning, fundraising, and serving as program ambassadors. Advisory boards should have three to five members who reflect the communities your organization aim to serve. Having an advisory board is linked to increased financial support and a five-fold decrease in the need for technical assistance.
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NOPI provides wrap-around services, including bookkeeping, A/P, A/R, payroll, HR, and two hours of technical assistance per month. Under specific sponsorship models, we extend our liability protection, 501(c)(3) status, and access to donated and nonprofit rates for goods and services.
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We believe in respecting the project founder's vision, values, and creativity. NOPI provides the opportunity for founders and organizations to retain ownership of intellectual property, including branding, social media channels, websites, and creative assets.
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Yes! However, it is the responsibility of NOPI to ensure that funds are spent only to further the project's mission and guarantee the delivery of services. Projects can in no way jeopardize our 501c3 status or (in the case of a Model C or F sponsorship) yours.
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As fiscal sponsorship requires NOPI to assume legal and financial liability potentially, we must complete our due diligence in screening new projects. Likewise, any group searching for a fiscal sponsor should also ensure they partner with a reputable and stable organization. This process should not be rushed and may take weeks or months to finalize. Projects not ready for sponsorship may benefit from our Technical Assistance services to get their program sponsor-ready.
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Fiscal sponsorship can be permanent, long-term, or short-term depending on the project and future direction. Some projects stay fiscally sponsored, while others become a separate 501c3 nonprofit organization. Some projects are temporary, and the need for sponsorship is time-specific and ends when the project is terminated or concludes.
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Sponsored programs can access in-kind and discounted products and services, including:
Google Workplace
Instrumentl Grants Database
$10 per user per month (reg $162 per month)Salesforce for Nonprofits
Hubspot for Nonprofits
40% off annual term contract on enterprise or professional plansCanva Pro
TechSoup Catalog
Cost varies by product and serviceGoogle Adwords
Squarespace
20% off the first year of hostingMailchimp
15-20% offZoom
50% offSlack
and many more!
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Starting July 1, 2024, a $100 refundable monthly fee will cover essential sponsorship costs like insurance, accounting, and grant management. Implementing fundraising minimums is essential to ensuring the sustainability and accessibility of our services for all.
Programs with no financial activity for six months will undergo a review to ensure their effectiveness and sustainability.
Together, we'll work towards achieving financial sustainability for your program or organization.
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Establishing a fiscal sponsorship with NOPI takes around 30 days. Projects that are responding to a public emergency are prioritized and accelerated through the onboarding process.
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Click here to see the current organizations and projects we are supporting. All are happy to provide a reference as needed!
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Our primary areas of focus are on programs addressing systemic inequities through the work that they do. Missions may focus on healthcare, housing, mental health, education, immigration, and more. We do not currently sponsor art or film projects. Please visit the Fiscal Sponsorship Directory for additional sponsors that may fit other areas of focus.
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As our organization earns and spends less than $500,000 in revenue, NOPI is not subject to an annual financial audit.
Our experienced team of bookkeepers provides accurate, up-to-date financial information and an independent Certified Public Accountant (CPA) ensures financial accuracy under Generally Accepted Accounting Principles (GAAP) for all our sponsored programs.
Ready to apply?
Don't hesitate to contact us at any time if you need assistance in completing the application. Preview/download a fillable PDF of the application here.
Who is Applying for Sponsorship?
Our fiscal sponsorship application covers organizational status, sectors of operation, leadership demographics, addresses, legal forms, budgets, fundraising plans, staffing needs, and technical assistance requirements. Applicant responses from 2021 and beyond indicate a diverse range of organizations, projects, and programs seeking fiscal sponsorship with varying establishment levels, funding sources, and resource needs.
Have more questions?
Check out 11 Questions Charitable Projects Should Ask a Fiscal Sponsor from the National Network of Fiscal Sponsors.