Advantages of sponsoring another charity

Description

Abstract: Fiscal sponsorships — a kind of legal and financial umbrella — can benefit both established nonprofits and charitable projects that lack 501(c)(3) status. But before agreeing to sponsor a group, nonprofits need to understand how such sponsorships work, as well as how they differ from similar, less-advantageous arrangements. This article discusses the benefits and responsibilities for both parties, and describes projects that can best benefit from a fiscal sponsorship.