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Q&A on Fiscal Sponsorship
- ACTION receives funds on behalf of the project, manages the money, accounts for all funds separately and makes payments as requested by the authorized parties in the group.
- With prior approval, projects may hold fundraising events and solicit individual or foundation donations. Each group is responsible for acknowledging donations and completing any required project reporting to granting agencies.
- ACTION will provide financial documentation annually.
- The group may use their funds for most purposes that adhere to the definition of public benefit corporation and may not engage in any activity that jeopardizes the ACTION’s nonprofit status.
- The group may contract through ACTION with individuals or agencies for consulting services, but may not hire staff.
- ACTION charges an 8% to 15% fee for all new funds deposited in the group’s account depending on the specific services provided.