Community foundations play an important role in supporting grassroots and community-led initiatives through a partnership model known as Fiscal Sponsorship. This arrangement allows organizations — particularly those that are not formally registered as 501(c)(3) nonprofits — to focus on their mission while the foundation manages administrative and financial responsibilities.
Through a Fiscal Sponsorship agreement, a community foundation may act on behalf of a project by collecting donations, paying invoices, providing marketing assistance, and handling other essential business functions. This structure reduces the administrative burden on project leaders, allowing them to dedicate more time and energy to their cause.
An additional benefit of this partnership is that it allows donors to contribute to charitable projects and still qualify for a tax deduction. Because the community foundation is a registered 501(c)(3) organization, it can receive donations for specific projects that serve a charitable purpose. However, donations must be directed toward the defined project and cannot exceed the project’s approved budget.
Fiscal Sponsorships provide a valuable opportunity for emerging initiatives to operate under the umbrella of a trusted nonprofit. They ensure financial transparency and accountability while supporting community-driven efforts that might otherwise face obstacles due to limited infrastructure or lack of nonprofit status.
Currently, Golden Belt Community Foundation is partnering with Great Bend Alive’s Innovation Center project and the LaCrosse Playground. Other existing collaborations include Barton Arts Movement and the Victory Garden.
As more organizations seek flexible ways to launch and sustain charitable efforts, Fiscal Sponsorships continue to grow as a vital tool for impact and collaboration. If you would like to donate to current fiscal sponsorships or learn more about how a community foundation can assist with your charitable purpose project, please seek our contact information at www.goldenbeltcf.org.
Jason Murray is the executive director of the Golden Belt Community Foundation.
