Fiscal Sponsorship Nurtures Innovative Projects

Are you seeking a Fiscal Sponsor? Our fiscal sponsorship program is designed to strengthen the region’s capacity to develop innovative responses to unmet community needs. We offer fiscal sponsorship in response to community interest and in alignment with our resources and expertise in nonprofit accounting, finance, law and human resources. We currently are incubating more than 30 projects.

What is Fiscal Sponsorship?

‘Fiscal sponsorship’ is a term known within philanthropic and nonprofit worlds describing a relationship between an established 501(c)(3) organization and a project which does not have that status, but whose activities align with the 501(c)(3)’s mission and vision.

Fiscal Sponsorship Works for:

  • New Projects: Individuals and groups are able to ‘test drive’ new charitable concepts before making longer-term investments.
  • Projects Waiting for 501(c)(3) status
  • Ongoing Projects: Leaders keep their projects lean and focused by maintaining a streamlined structure.
  • Short Term Projects: These projects will accomplish their purpose within a defined time period.

Meet Our Sponsored Projects

Benefits to Sponsored Projects

  • Individuals and groups can make tax-deductible donations to a sponsored project through its 501(c)(3) fiscal sponsor.
  • Projects focus on program work and fundraising, while the fiscal sponsor provides financial management, benefits administration, and human resources.
  • Grantmakers can award grant funding to a project through the sponsor.
  • Cost savings occur, as administrative expenses are shared across multiple projects.

Fiscal Sponsorship Criteria

Projects must meet the following criteria to be considered for Fiscal Sponsorship:

  • Located in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, although programming can occur outside of those states
  • Will apply funds raised toward nonprofit purposes
  • Statement of Intent aligns with MAP Fiscal Sponsorship vision
  • Is willing to incorporate and purchase general liability insurance
  • Has a plan to achieve financial viability

 Fiscal Sponsorship Fees

Application Fee. A non-refundable fee of $100 is due at the time of application.

Setup Fees. Upon acceptance, a project pays a $500 one-time set up fee, which covers:

  • Initial set up, chart of accounts
  • Set up, accounting and project management software
  • Budget assistance

Ongoing Fees.  We offer Tier 1 and Tier 2 fiscal sponsorship services.

Tier 1  – Seven percent of funds received by Project

  • Accounts payable and accounts receivable
  • Monthly and quarterly financial reports
  • Regulatory compliance
  • 1099’s to vendors at end of year
  • Twenty-five percent discount on MAP workshops
  • Project staff may attend Minnesota Council of Nonprofits events and trainings at the MCN member rate. Contact Biftu Takele for details.

Tier 2 – Nine percent of funds received by Project  (available only to Minnesota-based projects)

  • Everything included in Tier 1
  • Payroll, including year-end W-2s and Paychex fee

Member, National Network of Fiscal Sponsors

MAP is a member of the National Network of Fiscal Sponsors and follows its best practice guidelines. The NNFS promotes the understanding and professional practice of fiscal sponsorship.

For More Information

If you would like to discuss Fiscal Sponsorship for your project, email or call Danielle Gangelhoff, fiscal sponsorship program manager, 612.249.6671. If you would like to review the application form, here’s a copy: Application for Fiscal Sponsorship.