IRS Promotes Disaster Relief Sponsorship
Book Page 71 (Model A, Common Uses, Sudden Needs)
In a bulletin issued on 9/6/05, the Internal Revenue Service provided guidance to those interested in forming new organizations for relief of Hurricand Katrina victims. IR-2005-93, found at http://www.irs.gov/newsroom/article/0,,id=147281,00.html. The IRS also promoted the concept of fiscal sponsorship of relief projects through charities already in place, saying: Use of existing charitable organizations is encouraged because such organizations, including churches, are frequently able to administer relief programs more efficiently than newly formed organizations, because they already have fund-raising and distribution infrastructures in place. Further, the IRS provided answers to 8 FAQs on use of existing charities at http://www.irs.gov/charities/charitable/article/0,,id=149908,00.html.
“There is a right way and a wrong way to
go about the use of fiscal sponsorship. Mr. Colvin’s book brings much-needed sunshine and clarity to those who want to do it correctly.”
— John A. Edie, Director, Exempt Organizations Tax Services, PricewaterhouseCoopers
“With IRS audit activity on the increase,
it is vitally important for every charity that engages in fiscal sponsorship to know the rules and pitfalls. This book covers them all in clear, understandable language.”
— Marcus S. Owens, Member, Caplin & Drysdale
Former Director, IRS Exempt Organizations Division
“This book will be helpful for all sorts of charitable organizations and recipients of funding from such organizations.”
— Deirdre Dessingue, Associate General Counsel
United States Conference of Catholic Bishops
“Greg Colvin’s book is simply the best resource one could
want in understanding an important and growing strategy to help small and emerging nonprofit activities. Whether you call it project sponsorship, fiscal sponsorship, or program incubation, these approaches support the fundamental reason nonprofits exist in the American system: social innovation.”
—Drummond Pike, President, The Tides Center
“Greg Colvin’s book remains the most comprehensive analysis
of fiscal sponsorship and an essential part of the library of every grantmaker and grantseeker considering some form of fiscal sponsorship.”
— Kirke Wilson, Former President, Rosenberg Foundation
“The book we’ve been waiting for. ... A ‘must-have’ for
every nonprofit interested in providing this valuable service to its clients and the public.”
— L. Wade Black, Associate Director,
Alabama Center for Law & Civic Education, Cumberland School of Law
“This book is an essential reference for anyone who does — or should be doing — fiscal sponsorships. It is concise and practical. The forms alone are worth the purchase price.”
— Victoria B. Bjorklund, Partner, Simpson Thacher & Bartlett
a. For some answers to Frequently Asked Questions about fiscal sponsorship, see here, a site maintained by CompassPoint Nonprofit Services and other members of the California Management Asistance Partnership. The answers were written by David Barlow, CPA.
b. For individuals and organizations seeking a fiscal sponsor, The Foundation Center is a great resource. Headquartered in New York, it has field offices in Atlanta, Cleveland, San Francisco, and Washington DC, with coorperating collections in libraries across the country. For locations, click here . On line, The Foundation Center has information directed to individuals at XYXYXY. The FAQ refers to fiscal agents rather than using the correct term "fiscal sponsor" because inquiries are often posed in that way.
This website is intended to provide general information to the public in the area of fiscal sponsorship, not to provide legal or tax advice to any specific person or organization. Please consult your own lawyer or accountant for advice in these matters. Any tax advice contained on this website was not intended to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under federal tax law. You may rely on our advice to avoid penalties only if you have an attorney-client relationship with our firm based on a signed engagement letter and the advice is reflected in a more formal tax opinion that conforms to IRS standards. Please contact us if you would like to discuss the preparation of a legal opinion that conforms to these rules.