Fiscal Agent/Sponsor Definition: We all know the arts need funding to survive. Fortunately there are institutions that recognize this need and provide support. Most independent artists, however, including countless small or new arts companies, lack the all important 501(c)(3) tax status that makes those donations legal and desirable. That's where fiscal sponsorship (also called fiscal agency or umbrella agreements) comes in.
In a Nutshell: Fiscal Sponsorship is a financial and legal system by which a legally recognized 501(c)(3) public charity (such as TCAH) provides limited financial and business oversight for a project initiated independently by an artist. That "project" might be a one-time project or an independent artist or even an arts organization that does not have its own 501(c)(3) status. Once sponsored in this way, the project is eligible to solicit and receive grants and tax-deductible contributions that are normally available only to 501(c)(3) organizations. The principal of the project would apply for the grants independently from TCAH.
The Catch: Anytime you're dealing with the IRS (which regulates these issues), you can bet there are going to be some complicated legal issues involved. Many well-intentioned, legitimate organizations across the country provide fiscal sponsorship programs for artists. Very few of them are doing it legally, though, and most don't even realize the danger in which they're putting themselves and their sponsored projects. If (and it's really more of a "when") the IRS ever decides to crack down, they could lose their 501(c)(3) status, and their sponsored projects could be forced to return any money raised under the arrangement.
The Solution: Fortunately, TCAH is here to help. Our fiscal sponsorship program is legal, efficient, and affordable. Our program is open and accessible to artists and arts organizations in San Miguel County and in every discipline. Our job is to give you the tools you need to raise the money to make it happen.
TCAH’s fiscal sponsorship program offers many benefits that other fiscal sponsors simply don't have the resources or infrastructure to provide. Here are just a few of the perks that we think make us special:
- Online donations by credit card with no additional fee for credit card processing (the current fee charged by the processing company is 3%) - via the front page of our website under JustGive.org
- We can accept and process non-cash donations of equipment and materials
- Fund release checks are issued once per month at the sponsored artist's request (or more if closer to project completion date)
- Online profile and website link featured on our website
- Program is structured to ensure that you should never owe any taxes on money we disburse
- TCAH staff is friendly, helpful, and knowledgeable - a great ally as you pursue your work!
Click Here to
Apply for Fiscal Sponsorship
How much does it cost: Sponsored artists are regranted all contributed funds, subject to TCAH discretion, minus an administrative handling charge (this includes the credit card processing fee, time and administrative payment, and any checks paid on behalf of your organization by our organization).
How long does it take: New applications are reviewed monthly by the Board of Directors. Following approval of your application, you can expect to be up-and-running within 2-3 weeks..
What gets sponsored: Any ongoing or temporary project in the arts is eligible for sponsorship, including dance, film, multimedia, music, theatre, and the visual arts.
How do donors apply: Donors may make online donations via Just Give.org, and designate your project under the "Designate my donation" specification line.
This program is supported, in part, by our donors
and by public funds
from the Town of Telluride.