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Fiscal Sponsorship Program

What is the FJC Fiscal Sponsorship Program?

The Fiscal Sponsorship Program (FSP) enables FJC to serve as the fiscal sponsor for projects and organizations 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. To date, over 350 projects and organizations from over 30 countries have participated in the Program. Projects supported include: educational outreach, cancer support services, art exhibitions, documentary films, and synagogue and church restorations. 

Applying for Fiscal Sponsorship

Applications for entrance into the Fiscal Sponsorship Program are accepted on a rolling basis. All applications must include a clear overview of the proposed activities, projected budgets for at least the next two years, and a summary of the staff and/or board members associated with the project.

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, an 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. 

How the Fiscal Sponsorship Program Works

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, 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 Account 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 Fees & Potential Investment Income

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 transactional 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.

FJC is one of the few organizations that offer the opportunity to earn income on 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 administrative fees. 

Up-to-Date Access to Your Account Information

Participants can access their account balance and view past financial activity and previous Quarterly Statements of Activity on the FJC Account Portal. Any additional information not avaialble online can be provided by an FJC staff member.

Large Selection of Contribution Formats for Donors

FSP donors can send contributions by check, appreciated securities (including mutual funds), credit card, wire transfer, or other FJC pre-approved forms of property. There is no minimum dollar amount per contribution or maximum number of contributions that can be received in a period. 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.

Foundation Grants

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.