Frequently Asked
Questions
At Philanthropy in Action, we exist to stand in the gap. Whether you’re launching a new cause or joining forces with another organization for a shared mission, we’re here to help you take the next step with clarity and confidence.
Below are some of the most common questions we hear from potential partners. If you don’t see your question here, don’t hesitate to reach out.
What is fiscal sponsorship?
Fiscal sponsorship is a formal arrangement that allows a project or initiative to operate under the legal and tax-exempt status of an established 501(c)(3) organization — like Philanthropy in Action.
This means:
- You can receive tax-deductible donations
- You may qualify for grants that typically require 501(c)(3) status
- Donors can give with confidence
- You can focus on your mission while we handle the structure behind the scenes
We stand in the gap so worthy causes can move forward without unnecessary barriers.
What is fiscal sponsorship not?
Fiscal sponsorship is not a blank check, a fundraising service, or a hands-off donation portal. It is not:
- A substitute for a strong mission or a clear plan
- A promise of funding or grant acquisition
- A service that raises money on your behalf
You are responsible for fundraising and donor engagement. Our role is to make it possible — by providing the structure, compliance, and financial management that give funders the confidence to say yes.
We don’t run your project. But we do help you run it well.
Who is fiscal sponsorship for?
We work with causes of all kinds and sizes — including:
- Startups that haven’t yet applied for 501(c)(3) status
- Established organizations launching a new initiative
- Two or more organizations collaborating on a shared project
- Leaders testing an idea before forming a nonprofit
If you’re working to make a difference and need a way to receive funding, fiscal sponsorship may be the right path.
Do I still need to become a 501(c)(3)?
That depends on your long-term goals. Some of our partners use fiscal sponsorship as a short-term solution while applying for their own nonprofit status. Others choose to stay under fiscal sponsorship for the duration of their work.
Either option is valid. We’re here to support you as long as it’s helpful.
What does fiscal sponsorship include?
When you become a partner, you’ll receive:
- A fiscal sponsorship agreement
- An onboarding meeting to walk through expectations and answer questions
- Access to tools for managing donations and grants
- Ongoing account reports and financial oversight
- The trust and credibility that come from being connected to an established 501(c)(3)
Our role is to remove obstacles — so you can move your mission forward.
What types of fiscal sponsorship does PIA offer?
We offer Model A (Comprehensive) and Model C (Pre-Approved Grant Relationship) fiscal sponsorships.
What’s the difference between Model A and Model C sponsorship?
Model A: Your project becomes a program of PIA. We handle the funds, compliance, and reporting. Agreements are reviewed annually.
Model C: Your organization remains independent, and we re-grant funds to your organization. Agreements last for two years.
How does it work for collaborative projects?
If you’re working with another organization on a shared cause, fiscal sponsorship can simplify how you receive and manage funding.
Together, we’ll outline:
- How funds will be received and tracked
- The roles of each participating group
- The expectations for reporting and accountability
We’ll help you put a clear structure in place — so your project is free to grow.
What do I need to apply?
The application is simple. You’ll need:
- A mission statement or description of your project
- The names of your project leaders or advisory board
- A fundraising plan and basic budget
If your project is collaborative, we’ll also ask for clarity around the roles of each organization involved.
Who manages the money?
As your fiscal sponsor, we receive and hold funds on your behalf — and help ensure everything is handled responsibly.
You’ll receive:
- Regular financial reports
- Access to your funds as outlined in your agreement
- Help staying in compliance with grant terms and donor intent
It’s your mission. We simply help provide a trusted way to fund it.
How long does the partnership last?
Each partnership is unique. Some projects may only need a few months under fiscal sponsorship. Others may find it helpful for a year or more.
The agreement remains in place until your project concludes or transitions to a new phase. If your needs evolve, we’ll walk through the next steps together.
Is my project information kept private?
Yes. All information you share — from financial details to your long-term plans — is treated with care and confidentiality.
Do you have geographic restrictions?
We support fiscal sponsor projects in diverse regions throughout the United States. Request a conversation to learn more details and discover whether we can sponsor your project.
Are there fees for fiscal sponsorship?
10% of all funds received under a Model A agreement
10% of all funds received under a Model C agreement
Can we create a fundraising page as part of our fiscal sponsorship?
Yes. We offer a donation page for each approved project or organization. Donors can give to your project through our third-party platform, Mazlo.
When will I receive funds donated through the fundraising page or regranted from a private foundation grant?
Funds are typically available within 10 business days of receipt by our organization.
Will donors receive tax receipts?
Yes. Donors who give through Philanthropy in Action receive a tax-deductible receipt because we’re a registered 501(c)(3) public charity.
Can I talk to someone before I apply?
Of course. If you have questions or just want to explore whether fiscal sponsorship is right for your project, we’re here to help.
Still have questions?
— we’d be honored to hear more about your mission.