Financing Your Next Big Project

Maybe you have been thinking about starting a new project that will take a fair amount of time, require substantial financial resources and has a social component such as public education, student lectures, non-profit exhibitions or studio tours. One way to finance such a project is what is called Fiscal Sponsorship.

Fiscal sponsorship is way for arts organizations and individual artists to partner with a nonprofit organization who offers fiscal sponsorship (Sponsor) which gives them access to grant opportunities and the ability to offer tax deductions to project donors. A fiscal sponsorship has the following characteristics:

- Fiscal sponsorship is a hybrid way for you to be able to raise funds through grants or donations by having a “sponsor”
- The fiscal sponsor is usually a non-profit organization who collects and disburses the funds for a small fee
- The advantage of using a fiscal sponsor is that since it is a non-profit organization it is eligible to receive funds from foundations, trusts and
other nonprofits
- With a fiscal sponsorship your donors are able to receive tax write-offs for their donations since these flow through the fiscal sponsor (a non-profit)
- You are responsible for raising the funds NOT the fiscal sponsor. This type of arrangement may give your project more prestige if you are aligned
with a respected fiscal sponsor and make it easier for you to solicit and receive donations or grants.

Some examples of projects that have received fiscal sponsorship include:

- 500 portraits of Mexican women living in the U.S. and 500 pictures of their most cherished objects that connect them with Mexico.

- Sixteen paintings that explore the rhythm of nature as an allegory for the cycle of life.

- The project 125th: Time in Harlem is an exploration of the urban landscape through photographs of 125th St., Harlem’s cultural and economic core.

- A series of one-person exhibitions and publications by a painter.

- An art exhibition committed to raising awareness of a global threat to nature, and a local threat to heritage.

In the linked article, guest writer, ballerina and journalist Stephanie Wolf takes a look at Fiscal Sponsorship and how it might be used to help fund your next big project. I invite you to check it out!

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