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Fiscal Sponsorship: What It Is, Who It's For, and When It Makes Sense

8/5/2026

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Know the saying, "The best boat is your friend's boat"? The same can be said of nonprofits. Instead of starting your own nonprofit, you may be better off partnering with an established one to support your community-based project. That partnership is called fiscal sponsorship.

I'm a big fan of fiscal sponsorship, especially for creatives and community-led initiatives, but it's an option many people either don't know about or are wary of.

In this article, I cover the basics, explain when fiscal sponsorship makes sense, and explore how it can benefit both community projects and established nonprofits.

What is fiscal sponsorship?
At its core, fiscal sponsorship is a partnership between a charitable project and an established 501(c)(3) nonprofit. At its best, fiscal sponsorship is a form of shared infrastructure. 

Instead of every community initiative creating its own nonprofit, projects can build on the administrative foundation of an existing organization so more time and resources go toward serving the community.

Done well, fiscal sponsorship is much more than sharing a tax ID. It's a collaborative relationship where both the nonprofit and the sponsored project contribute to advancing a shared mission.

A real-world example: In 2024, I wanted to apply for a City grant to offer a free professional development workshop for creatives. Because I wasn't eligible to apply as an individual with an LLC, I partnered with a local nonprofit as my fiscal sponsor. The grant was awarded to the nonprofit, which then administered the funds according to our agreement and budget. Thanks to that partnership, I was able to present the workshop at no cost to participants, provide a catered lunch, and even offer equity stipends to those who attended the full program. Without fiscal sponsorship, that project simply wouldn't have been possible.

Did you know? According to Candid, there are over 1.9 million nonprofits in the United States. Starting a new nonprofit isn't always the best solution. Fiscal sponsorship allows communities to invest in ideas without creating a new organization every time someone has a great project.

The two primary models
There are two common forms of fiscal sponsorship.

Pre-Approved Grant Relationship (often called Model C)
This model is often a good fit for shorter-term projects or specific grant-funded initiatives. The nonprofit receives charitable funds on behalf of the project and then regrants those funds to support the agreed-upon charitable work. This allows projects to apply for grants or receive tax-deductible donations without forming their own nonprofit.

Comprehensive Fiscal Sponsorship (often called Model A)
For longer-term programs or initiatives, a comprehensive model may make more sense. In this arrangement, the project becomes an official program of the nonprofit for an agreed-upon period of time. The nonprofit provides oversight and administrative support while the project team focuses on delivering the work.

Why it works
One of the biggest advantages of fiscal sponsorship is that it lets each partner focus on what they do best.

Artists, organizers, and project leaders can spend more time creating programs and serving their communities instead of building nonprofit infrastructure from scratch. Meanwhile, the sponsoring nonprofit expands its mission and community impact by supporting work that aligns with its goals.

It's a beautiful example of shared infrastructure: instead of duplicating administrative systems, organizations work together to maximize community impact.

For artists, creatives, and community projects
Fiscal sponsorship can be a great option if you have a strong charitable idea but don't want, or don't yet need, to start your own nonprofit.

Another example: A colleague of mine had a vision for a Battle of the Bands competition for high school students but didn't want to start a nonprofit just to make it happen. Instead, he partnered with a local arts education nonprofit through fiscal sponsorship, allowing him to raise charitable donations and apply for grants. This summer, the event celebrated its second successful year with growing community support—all without ever needing to create a nonprofit.

Fiscal sponsorship can also help newer nonprofits that haven't yet built the track record required for certain grants. A fiscal sponsor provides funders with confidence that grant funds will be properly managed and stewarded.

That said, fiscal sponsorship isn't available for every opportunity. Some grantmakers allow fiscally sponsored applicants, while others require applicants to have their own 501(c)(3) status. Always review the eligibility requirements before applying!

For nonprofits considering a fiscal sponsorship program
Fiscal sponsorship can be an incredible way to expand your mission, but it shouldn't be entered into casually.

Ask yourself:
  • Do we have the accounting and bookkeeping capacity to manage multiple restricted funds?
  • Do we have clear fiscal sponsorship agreements, or are we willing to invest in legal review to develop them?
  • Do we have staff capacity to actively support sponsored projects?
  • Does sponsoring projects align with our mission and long-term strategy?

Remember, fiscal sponsorship is not simply passing money through your organization. The IRS expects sponsoring nonprofits to maintain oversight and ensure charitable funds are used appropriately.

Administrative fees vary depending on the level of support provided, but many nonprofits charge between 8-10% of charitable funds received to cover bookkeeping, compliance, insurance, grant administration, and other support services. Before launching a program, run the numbers carefully to ensure it is financially sustainable.

If your organization is already stretched thin delivering its existing programs, adding a fiscal sponsorship program may not be the right next step unless you're prepared to invest in the capacity needed to run it well.

That doesn't necessarily mean hiring a full-time staff member on day one. Some nonprofits choose to partner with an experienced consultant on a fractional basis to design and launch a fiscal sponsorship program, establish policies and financial systems, and train staff to manage the program independently over time. 

Consider the bigger picture
Adding a fiscal sponsorship program can affect your organization's finances in unexpected ways.

Funds received on behalf of sponsored projects generally become part of your organization's annual revenue, even though those funds are ultimately spent on the sponsored project. That may affect grant eligibility, reporting requirements, or IRS filing obligations.

For example, some operating support grants base award amounts on an organization's annual budget. Adding sponsored projects could move your nonprofit into a different funding tier. Likewise, crossing certain IRS revenue thresholds may require filing a full Form 990 rather than the simpler 990-N postcard.

These aren't reasons to avoid fiscal sponsorship, but they are important considerations to understand before launching a program.

When fiscal sponsorship makes sense
For example, a community arts nonprofit might fiscally sponsor a neighborhood mural project, a local music festival, or an artist residency that aligns with its mission. Rather than creating new organizations for each initiative, the nonprofit can support community-led ideas while expanding its own impact.

For community members, fiscal sponsorship may be a good fit if:
  • You have a charitable project but don't want to create a new nonprofit.
  • The project aligns with the mission of an existing nonprofit.
  • Grant opportunities in your community allow fiscally sponsored applicants.
  • You want to spend more time delivering programs than managing nonprofit administration.
  • You're looking for experienced administrative support while your project grows.

For nonprofits, fiscal sponsorship may be a good fit if: 
  • There’s a need in your community for fiscal sponsors
  • Having a fiscal sponsorship program and supporting community-led projects aligns with your mission
  • Your administrative operations, IRS compliance and bookkeeping are solid, and you can manage multiple restricted funds
  • You want to expand your programs and capacity through fiscally sponsored projects.

Finding a fiscal sponsor
Not all fiscal sponsors are the same. Look for an organization whose mission aligns with your project, whose values match your own, and that clearly communicates its fees, expectations, and level of support.

A strong fiscal sponsorship relationship should feel like a partnership, not just an administrative transaction.

While a local fiscal sponsor may have a deeper understanding of your community and its funding landscape, it's not your only option. Depending on the grant guidelines and your project's needs, you may be able to work with a nonprofit elsewhere in your state or even with a national fiscal sponsor.

To learn more about fiscal sponsorship or search for potential fiscal sponsors, check out the National Network of Fiscal Sponsors and Candid.org.

Final thoughts
Communities don't always need more nonprofits. They often need stronger infrastructure.

Fiscal sponsorship is one way to strengthen the infrastructure that helps communities, nonprofits, and creative leaders thrive. When done thoughtfully, projects can focus on their mission, nonprofits expand their impact, and communities gain new programs without creating unnecessary duplication.

If you're considering launching a community project, exploring fiscal sponsorship, or developing a fiscal sponsorship program for your nonprofit, I'd be happy to answer your questions and help you think through the options. Feel free to schedule a complimentary consultation.
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What Actually Sustains Arts Organizations Right Now (and What Doesn’t)

4/16/2026

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Image generated with AI to reflect the themes of this piece.

After my time leading Alberta Abbey, I’ve been taking a step back to reflect on what it actually takes to sustain an arts organization right now. Not in theory, but in practice.

There’s no shortage of passion, talent, or vision in this field. What’s harder to come by is stability.

What became clear to me is this: many arts organizations aren’t struggling because of a lack of effort, creativity, or commitment. They’re struggling because they’re operating within business models that were never designed to be stable in the first place.

Once I saw that, it reframed how I understood nearly every challenge we were facing.

Grants are not a strategy. They are inherently unstable.
Finding funding for the arts has always been difficult. While I believe deeply that arts and culture are vital infrastructure for healthy, connected cities, they are still widely treated as a “nice to have.”

At Alberta Abbey, grants were our primary source of contributed income. I spent roughly 30 to 50 percent of my time each week working on them. And even then, nothing was guaranteed.

When federal funding cuts hit, the effects were immediate. The pool shrank, and suddenly arts organizations were competing for the same dollars as nonprofits addressing food insecurity, housing, and other urgent needs. In that environment, arts organizations are at a structural disadvantage.

Even in stronger years, grant funding is unpredictable. You can invest significant time into applications and receive nothing. Or you might have a successful year, only to find yourself ineligible the next. Funder priorities shift. Guidelines change.
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Individually, these challenges can be explained away. But taken together, they point to something larger. Grants are not a stable foundation for long-term sustainability. They were never designed to be.

Earned revenue helps. But it is not fully within your control.
We were fortunate to have relatively strong earned revenue streams. We offered office space, performance space, and production services. Our bar generated the highest margin and helped subsidize the rest.

But even that stability was conditional.

Our primary clients were other nonprofits. If they didn’t receive funding, they couldn’t afford our services. Revenue that appeared “earned” was still indirectly tied to the same fragile funding ecosystem.

Diversifying revenue is often presented as the solution. And it can help. But diversification alone does not create stability if each revenue stream is subject to the same external pressures.

The underlying issue remains. Much of the revenue arts organizations rely on is not fully within their control.

Infrastructure is under built, but expected to carry everything
I knew going into the role that operations mattered. What became undeniable is that they are the foundation everything else depends on.

Systems, staffing structures, and pricing models are not secondary concerns. They determine whether an organization can function consistently and grow sustainably.
The challenge is that this work is often under-resourced and deprioritized. It falls into the category of “important, but not urgent,” which means it gets pushed aside in favor of immediate needs.

At the same time, organizations are expected to deliver high-quality programming, expand their reach, and increase revenue.

We are asking organizations to scale without investing in the infrastructure required to support that scale. That mismatch creates ongoing instability.

The system relies on unsustainable labor
​In under-resourced environments, there is a strong instinct to do everything internally to save money. I understand that instinct. I operated that way myself at times.

But it comes at a cost.

When leadership is pulled into operational gaps, it limits the organization’s ability to think strategically, build partnerships, and generate revenue. I found myself covering shifts, troubleshooting last-minute staffing issues, and stepping into roles that were necessary but not the best use of my time as an executive director.
One of the most impactful changes we made was partnering with a staffing agency to handle front-of-house coverage. It reduced stress, increased reliability, and freed up capacity for higher-level work.

That shift made something very clear. What often looks like cost-saving is actually inefficiency. And more broadly, the system relies on people overextending themselves to keep things running.

Burnout in the arts is often framed as an individual issue. In my experience, it is structural.

People are the most important investment
If there is a through line in what actually helps organizations function, it comes back to people.

Creating clarity, accountability, and a sense of purpose for staff is not just good leadership. It is operationally essential. When people understand their roles and feel supported in them, everything works better.

At the same time, being a place of public gathering carries real responsibility. We worked to ensure that our space felt safe, welcoming, and professionally run, even in challenging situations. That level of care requires intention and resources.
And as leaders, we have to include ourselves in this equation. The pressure to carry more, to push through, and to make it work at all costs is deeply embedded in this field. But sacrificing your health is not a sustainable strategy.

If the system depends on people constantly overextending themselves, it is not a sustainable system.

What I’d do differently
It is difficult to separate hindsight from context. I stepped into an organization with existing challenges and did the best I could with the information and resources available at the time.

That said, I would move more quickly to invest in capacity-building solutions.
Partnering with a staffing agency earlier would have saved significant time and stress. I also would have considered bringing on additional management support sooner to take on day-to-day operations and create more space for strategic leadership and revenue development.

In resource-constrained environments, these decisions can feel risky. But not making them carries its own cost. Delaying investment in capacity often reinforces the very instability you are trying to solve.

What I’m focused on now
This experience clarified where I want to focus my work moving forward.

Alongside continuing to do consulting work with arts and cultural organizations, I am increasingly interested in ecosystem-level solutions. Work that looks beyond individual organizations and addresses the broader conditions in which they operate.

Through my volunteer role as Co-Chair of MusicOregon’s Music Advocacy Council, I am engaging in efforts that many leaders simply do not have the capacity to take on. Most are already stretched thin managing day-to-day operations within these constraints.

At the same time, the environment is shifting rapidly. Audience behavior has changed. The attention economy has reshaped how people engage with live experiences. Emerging technologies, including AI, are likely to introduce further disruption.

Arts organizations are navigating all of this while operating within business models that were already unstable.

Looking ahead
If we want arts organizations to be sustainable, we cannot simply ask them to work harder or be more creative within the same constraints.
We have to examine the structures themselves.

Because right now, we are asking organizations to build long-term stability on top of short-term, unpredictable, and often misaligned funding systems.
And until that changes, sustainability will continue to be the exception rather than the norm.

These are the questions I’m continuing to explore in my consulting work and in conversation with others across the field. If you’re thinking about these challenges too, I’d welcome the chance to connect.

Note on process: This article is based on my direct experience and perspective.
​I used AI tools to help refine the writing and generate the accompanying image.
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Getting Started: Fundraising Essentials for Arts Leaders

12/15/2023

 
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Are you an artist-turned-executive-director? Is fundraising top of mind, but you don’t know where to start? Keep reading.

I meet artists all the time who take on leadership roles, sometimes willingly, sometimes reluctantly. It feels like in order to do the thing you love (whether it’s performing or bringing your artistic vision to life) someone’s got to handle the admin or business side and you’ve stepped up. 

Most of the time, that role boils down to: Where am I going to find the money? 

For this article on fundraising, I collaborated with my colleague Brian Williams, a nonprofit fundraising consultant, who has specific expertise in the arts. (We met serving on the board of the Arts Council of Johnson County in 2017.) I love Brian’s calmness and down-to-earth approach that takes a lot of the scary out of fundraising.


What are your recommendations for new arts leaders to set themselves up for success in fundraising?


In the realm of fundraising, regardless of the organization's age or size, fostering a culture of philanthropy is paramount. This principle, coupled with a strategic approach to board development, community engagement, and innovative fundraising, can set the stage for sustained success. Here's a guide for new founders and executive directors seeking to elevate their arts nonprofit in a thoughtful, strategic way.


Embrace a Culture of Philanthropy:
What does it mean to instill a culture of philanthropy within your team and stakeholders? In a nutshell, it means that everyone is empowered as an ambassador for your organization. Whether they have an official fundraising role (like EDs, development staff, and board members) or not, emphasize the importance of collective efforts in advancing the organization's mission. This mindset should permeate every aspect of the organization, from leadership to daily operations.


Build a Diverse and Passionate Board:
First things first. You’ve got to get a core group of the right people around you. When assembling your board, prioritize diversity, passion for your cause, and community connections. A diverse board brings varied perspectives and experiences, enriching the decision-making process and can make fundraising easier. Be transparent with board members that they are expected to fundraise. This could look like a give/get policy and working with them to develop a realistic fundraising plan. 


Implement a Working Board Model:
In other words, put your board members to work! In the startup phase, acknowledge that one person cannot do it all. Opt for a working board that actively participates in daily operations while steering the organization's direction. Again, communicate this dual role clearly to prospective board members, ensuring a shared understanding of their involvement in both the hands-on work and strategic decision-making.


Engage Your Innermost Circle:
Once you have your core people, tap into the support of your innermost circle—friends, family, colleagues, and those committed to your cause—to start spreading the word about your organization. Leverage their passion and connections to add people to your email list/CRM, which will be an important part of your fundraising efforts. Clearly articulate your mission and the impact you aim to achieve, compelling them to become ambassadors for your cause. Fundraising is a long-game that requires intentional relationship-building.


Foster Community Connections:
Forge meaningful partnerships with other arts organizations, artists, and cultural institutions to strengthen your community ties. Collaborative initiatives not only broaden your network of potential supporters but also amplify your organization's impact. Engage in local events, attend community gatherings, and showcase the transformative power of the arts to connect with a wider audience.


Utilize Crowdfunding Platforms:
Explore crowdfunding platforms like GoFundMe or Facebook's fundraising tool to amplify your reach. Crowdfunding enables you to showcase your cause on a large scale, appealing to potentially millions of individuals and organizations to contribute. Craft a compelling narrative on your website, sharing your mission, vision, goals, and relevant information to inspire support.


Conclusion:
By integrating these recommendations into your approach, you're not only fostering a culture of philanthropy within your organization but also laying a robust foundation for fundraising success. A diverse and passionate board, coupled with engagement strategies targeting your innermost circle and leveraging crowdfunding platforms, will propel your arts nonprofit toward sustained growth and impact.



Get Support: 
Want help building your board or creating a fundraising plan? Reach out to Brian for a complimentary 30-minute consultation. 

And if you’re an artist just stepping into the world of arts leadership – Arts Consultant Cheri Jamison can help you get oriented, supported, and learn to “fly the plane while it’s in the air.” There are tons of free resources and support available. Let’s have a coffee over Zoom to chat about it (free of charge).

Article collaboratively written by Cheri Jamison Consulting and Brian Williams, Dandelion Consulting.

Brian Williams created Dandelion Consulting with the purpose of “Cultivating Nonprofits for Sustainability.'' He has been fundraising for the nonprofit sector since 2003. His career spans large and small organizations supporting the arts, HIV, and houselessness. His experience includes: major donors, writing plans for annual development and donor stewardship, grant writing, appeals. He also does a Culture of Philanthropy Training for board and staff. dandelionconsulting.co

Cheri Jamison is an Arts Consultant with over 12 years of experience in the arts and nonprofits. Cultivating a non-judgmental, solution-oriented environment, Cheri meets her clients wherever they’re at with their business or creative career. The focus of Cheri Jamison Consulting LLC is strengthening organizations from the inside out through capacity-building, executive coaching, board training, and professional development. CheriJamison.com

    Author

    Cheri Jamison is a creative economy strategist helping communities strengthen the systems that support arts, culture, music, and nonprofits. She helps organizations move from ideas to action by designing practical strategies, building capacity, and creating sustainable partnerships. CheriJamison.com

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CHERI JAMISON
Strategic consulting and thought partnership for nonprofit executive directors and creative-sector leaders.

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Portland, Oregon Metro / Southwest Washington

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