What is

Fiscal Sponsorship?

CultureWorks reviews fiscal sponsorship applications on an approximately quarterly basis, depending on our capacity.

If you are interested in being fiscally sponsored, please submit your request to be added to our waitlist. Our next intake process will open in June 2024; we’ll announce details soon.

Fiscal sponsorship offers an alternative to the complicated processes of starting a new nonprofit. Project leaders are responsible for implementing programs, while the fiscal sponsor ensures proper financial, legal, and administrative oversight with a formal arrangement organized under an existing 501(c)(3) status.

With a fiscal sponsorship in place, individuals and small teams leading projects are able to raise funds, receive tax-deductible donations, and become eligible for grants without creating their own formal business entity. Fiscal sponsorship has evolved as an effective and efficient mode of starting new nonprofits, seeding social movements, growing valuable community projects, and delivering public services.  

Take a closer look at our fiscal sponsorship services below, and check out our current list of fiscally sponsored projects.

Model A Fiscal Sponsorship

This is the closest relationship between sponsor and fiscally sponsored project —there is no legal or corporate distinction between CultureTrust and the project. Each project becomes its own subtrust under CultureTrust, where income and expenses are held for the project. Functionally, a Project Director of a fiscally sponsored project in our Model A program acts as the head of their own department within CultureTrust. The project retains control over its mission, artistic/programmatic vision, and intellectual property, and CultureTrust serves as the direct contractor, insurer, and liability holder for all of the project’s activities, receiving all revenues and paying standard expenses. 

Fees

CultureTrust allocates 12% of all incoming project revenues to cover the costs of shared services, staff labor, and General Liability and Directors and Officers insurance coverage we provide for Model A Fiscal Sponsorship.

Additionally, there is a $50/month Fiscal Sponsorship Administrative Rate that can be paid monthly or annually.  This fee covers the cost of our shared fiscal sponsorship platforms and services even when a project is not bringing in revenue.

Model C Fiscal Sponsorship

This model is more arm’s-length than the Model A, which is why we offer this as an optional “incubator” relationship to CultureWorks members. The relationship between the sponsor and the project is one of grantor (CultureTrust) and grantee (the project) and only concerns contributed revenues. Earned revenues — income received in exchange for goods or services, like ticket sales or fees for consulting — are not touched by the sponsor. Funds are received in CultureTrust’s account, and CultureTrust then re-grants them to the project when requested as a reimbursement. 

Fees

CultureTrust allocates 7% of all incoming contributed project revenues to cover the cost of charitable compliance, staff labor, and oversight costs we provide for Model C Fiscal Sponsorship. 

Additionally, there is a $50/month Fiscal Sponsorship Administrative Rate that can be paid monthly or annually.  This fee covers the cost of our shared fiscal sponsorship platforms and services even when a project is not bringing in revenue. 

Shared Workspace

A discounted 5 day pass (30 hours per month) is available to purchase at $40, normally $90 per month, for the fiscally sponsored project's Project Director, or one person of their team. This pass includes:

  • Use of the community tables and communal space

  • Unlimited hours for the breakout rooms

  • 6 hours of conference room use during business hours (Monday - Friday from 10am-4pm)

If you would like to purchase this pass or otherwise join CultureWorks as a shared workspace member, please contact us.

If you become fiscally sponsored but choose not to add on a space membership, you will still have access to the following at our shared coworking space:

  • Mail

  • Drop in access during business hours only (Monday - Friday from 10am-4pm)

  • 24 hours of free conference room reservation time annually (must reserve in advance and be during business hours)

  • 10 guest passes per month (guest passes are 1-day passes)

If you or your project is looking for more services, including printing, storage, access to breakout rooms, or regular workspace, please sign up for a space membership level that works for you.