How should a Model C Project Apply to a Foundation for a Grant Via Its Fiscal Sponsor? 

The project can prepare the application, but the sponsor must ensure its role is properly documented.

See “How to Process a Grant from a Project with a Fiscal Sponsor (Model C Regrant),” presented at a 2010 Private Foundation Summit, listing the steps that a foundation could expect an applicant to take when a project proposal is submitted via its 501(c)(3) sponsor.

This situation involves a Model C “regrant” arrangement, where the project is a separate legal entity (could be an artist, an author, a 501(c)(4), a dance group — any non-(c)(3) organization or individual) that has been “adopted” by a fiscal sponsor. The sponsor receives the outside funding and then exercises its discretion and control to regrant funds to the project with proper documentation. The grant process occurs twice: (1) from the funder to the sponsor and (2) from the sponsor to the project.

Many times, projects, sponsors and foundations are confused about how a sponsored project should present its application to a funder. Of course, the project director usually makes initial contact with the prospective funder and finds out if it is interested in making a grant. If so, the project prepares the grant proposal, application, budget, etc. Then what? Follow the steps on the protocol. …

It is not enough just to slip a copy of the fiscal sponsor’s IRS letter in the back of the package. The proposal should be presented to the funder with a cover letter from the sponsor on top.