Dear 4C:
I work with a group of artists and historians on documentary film projects. We are interested in applying for grants, but we do not have non-profit (501c3) status so we are ineligible for many opportunities. We’ve heard you can get another non-profit to serve as an umbrella so you can apply for grants requiring 501c3 status. We’re interested in going this route. Can you give us some guidance on how to do this?
Ineligible
Dear Ineligible:
Considering an umbrella, formally known as a fiscal sponsor, is a great way to open funding doors and can serve as a stepping-stone to becoming a 501c3 organization. Do a little research to confirm that the funders you’re interested in applying to do indeed accept fiscally sponsored groups. The Foundation Center has a detailed tutorial that may help you understand the role and responsibilities between your group and a fiscal sponsor. There are many organizations out there willing to serve as a fiscal sponsor. Most charge an administrative fee ranging between 4% and 10%. Many of the organizations that require a higher fee, provide additional benefits such as grantwriting assistance, an on-line profile and promotional assistance. Consider what they require and what you need before you partner. Some to look into are: Fractured Atlas, Allied Arts Foundation, Shunpike, or do a little internet research and visit the Fiscal Sponsor Directory. Best of luck to you!
