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The Nonprofit FAQ > Organization >

Start-up

Is there any way to be eligible for grants before getting 501(c)3) status?

Summary:

Sometimes, a fiscal sponsor will assume responsibility for a grant-supported project that is not connected to any existing agency or organization.

Answer:

From the BOARD CAFE for June 2000:
If you're a new organization that hasn't incorporated yet, but
wants to start activities and accepting tax-deductible donations,
you may want to use a fiscal agent or fiscal sponsor. And if
you're an established organization, you may want to help new
community efforts by serving as their fiscal sponsor. A set of
Frequently Asked Questions (and answers!) on the legal and
contractual responsibilities for fiscal sponsorship partners is
now available on the web at the Nonprofit Genie: go to
http://www.genie.org and select "Fiscal Sponsorship" in the
"FAQs" section.

BOARD CAFE is published monthly by CompassPoint
Nonprofit Services and the National Center for Nonprofit Boards.

CompassPoint
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San Francisco, CA
94103
415-541-9000
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http://www.compasspoint.org.

National Center for Nonprofit
Boards
1828 L Street NW, Ste. 900
Washington, DC
202-452-
6262
info@ncnb.org
website http://www.ncnb.org

If you
would like to have BOARD CAFE delivered to you free via
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rented, exchanged, or given to any other entity.
© 2000 CompassPoint Nonprofit Services/National Center for
Nonprofit Boards

There is more information about fiscal agent arrangements in the general
FAQ article on starting a nonprofit organization at
http://www.nonprofits.org/npofaq/2/1.html



Posted 6/9/00; title changed 7//6/05 -- PB

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