What is the FJC Fiscal Sponsorship Program?
The Fiscal Sponsorship Program (FSP) assists domestic projects and organizations that have not yet received their 501(c) (3) determination from the Internal Revenue Service. The FSP also helps foreign organizations as described below. Areas of focus include, but are not limited to: education, inter-group relations, health services, social services, religion, science, arts and culture, and the environment.
The FSP enables FJC to serve as the fiscal sponsor for organizations and projects that: are awaiting their IRS 501(c)(3) approval; are too small or temporary, for it to be fiscally viable for them to exist as an independent organization; are based overseas and are not able to, or choose not to, maintain an “American Friends of” entity on their own behalf. Through the FSP, FJC is extending its charitable mission so that approved participants and their supporters receive FJC’s expertise and tax-exempt umbrella.
Areas of focus include, but are not limited to: education, inter group relations, health services, social services, religion, science, arts and culture, and the environment. FSP participants have included a wide range of programs abroad and in the United States.
Projects supported include: educational outreach, cancer support services, art exhibitions, documentary films, and synagogue and church restorations.To date, over 230 organizations from 30 countries have participated in the Program.
Applying for Fiscal Sponsorship
Applications for entrance into the FJC Sponsorship Program (FSP) are accepted on a rolling basis. Once FJC has received all the requested materials the application will be circulated to the Fiscal Sponsorship Committee for review. FJC will notify applicants of the Committee’s decision and if the application is approved a FSP Agreement will be executed at that time.
The length of the application process depends on a number of factors, including how complete the application is at the time of submission, the nature of the project, and the number of applications currently being reviewed. The average application is reviewed and decided upon within 4-6 weeks.
Please provide all information that is relevant to the project or organization. All applications must include a clear overview of the proposed activities, projected budgets for at least the next 2 years, and a summary of the staff and/or board members associated with the project.
How the Fiscal Sponsorship Program Works
FJC’s staff fully analyzes each proposed organization or project and all applications are reviewed by FJC's Board of Directors. Upon approval of a project's application, it is eligible to enter into an Agreement with FJC. The Agreement requires funds to be used for a specified purpose and sets forth the terms and conditions of the project's relationship with FJC. Participants are required to submit written reports to FJC semi-annually, which include a financial accounting summary and a narrative update on the progress of the funded project.
The FSP allows projects to collect contributions for their work, which are fully deductible to the donor. Contributions can be made in the form of cash, appreciated securities (including mutual funds), credit card, or other FJC pre-approved forms of property. FJC will issue tax receipts to all donors that contribute to the account. Contributions are designated to the project's account and are invested while held in the account. Interest earned on the funds is credited to the account, helping to offset the administrative fees, giving participants more money to use for their work.
Participants can pay vendors, contractors, consultants, and reimburse individuals for program related expenses from their account. As needed, participants can submit payment requests, with all required backup materials, against their account balance and FJC takes care of the rest! FJC typically processes requests within ten business days.
At the time an FSP application is approved, a transactional fee, of 4-6%, will be determined. All contributions received on behalf of the project will be subject to the transactional fee; the balance of the contribution received is applied to the account. There is also an annual fee of 1% of the average daily balance maintained in the account. This fee is posted to the account quarterly at a rate of ¼ of 1%.
Participants can access their account balance and view account activity online using the FJC Donor Portal and will receive a Quarterly Statement of Activity. If all agreement requirements have been met during the term, the agreement is eligible for renewal annually.
Advantages of Choosing FJC as a Fiscal Sponsor:
Low Administrative Fees & Potential Investment Income
FJC maintains some of the lowest fees for fiscal sponsorship available in the industry. In addition, FJC is one of the few organizations that offer the opportunity to earn income on the funds while they are held in an account. Any interest earned on the account balance is applied to the account and is available for the project, which helps offset the administrative fees. The investment income will help offset the administrative fees on the account.
FJC applies an administrative fee of 1% annually, based on the average daily balance of the account. Additionally, we apply a transactional fee, which is typically set for the agreement term at 4-6%, depending on the expected volume of contributions and distributions. FJC’s contribution fee is significantly lower than other fiscal sponsors, which often charge 7-12% per contribution! We also do not charge an application fee, renewal fee or minimum balance fee, as many other fiscal sponsorship programs do.
Up-to-date Access to Your Account Information
Participants can access their account balance, view past activity and previous Quarterly Statements of Activity on the FJC Donor Portal. This will allow participants to see who has contributed to the account, what payables are in process, etc. If there is any additional information needed that is not available online FJC will provide the information as needed.
Funds are Available for Distribution at Any time
Participants can request distributions at any time and there is no maximum number of distributions that can be processed during a set period. There is no minimum balance that must be achieved in the account before funds can be released.
Many other organizations have a $500 minimum before funds can be released and limit the number of checks that can be written in a month or quarter.
Large Selection of Contribution Formats for Donors
FSP donors can send contributions in the form of checks, appreciated securities (including mutual funds), via credit card or wire transfer, and other FJC pre-approved forms of property. Contributions of appreciated securities or other property, held for at least one year, are deductible at their fair market value. Donors do not pay capital gains tax on the appreciation.
Flexible Contribution Amounts
FJC will accept gifts of any denomination, in a wide range of formats, for a project at any time. There is no minimum dollar amount per contribution, or maximum number of contributions that can be received in a period.
A Fiscal Sponsorship account allows participants to apply for foundation grants for which it would otherwise not qualify for as a non-tax-exempt organization. FJC will review and enter into grant agreements with third party foundations on your behalf; however, FJC will not assist projects with completing the narrative and other content of third party foundation applications.