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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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Streamlining Success: How Systematizing Operations Leads to Financial Stability in Arts Nonprofits

7/11/2024

 
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In the vibrant and often unpredictable world of arts nonprofits, achieving financial stability can feel like a herculean task. Leaders are continually balancing creative aspirations with fiscal realities, a dance that requires both vision and pragmatism. 

One of the most effective strategies for securing financial health is focusing on operations and systematizing organizational processes. Here’s how this approach can transform your arts nonprofit into a model of efficiency and financial resilience.


The Foundation of Stability: Why Operations Matter

At the heart of any successful organization lies a robust operational framework. For arts nonprofits, which juggle multiple projects, stakeholders, and funding sources, having streamlined operations ensures that every aspect of the organization runs smoothly and efficiently. This foundation is critical for several reasons:

1. Consistency in Execution:
Systematized operations mean that every task, from fundraising to event planning, follows a set protocol. This consistency reduces errors, increases efficiency, and ensures high-quality outcomes. 

While I know this sounds boring to creative minds, in my experience, it actually allows for more creativity. Having solid systems and organizational framework makes people feel safer and frees up energy to take creative risks in the appropriate channels, like onstage!

2. Resource Optimization:
Well-defined systems allow for optimal use of resources, both human and financial. When staff know exactly what steps to follow, time is saved, and efforts are focused on mission-critical activities rather than on figuring out processes.

3. Scalability:
As your organization grows, scalable systems are essential. Standardized procedures make it easier to onboard new team members and expand programs without sacrificing quality or efficiency. When it comes to scalability, it helps to think about having “double vision,” keeping an eye on your needs for today, but also the future. 


Key Areas for Systematization

To reap the benefits of systematized operations, focus on these key areas:

1. Financial Management:
Develop clear financial policies and procedures. Implementing a robust accounting system ensures accurate tracking of income and expenses, facilitating better budgeting and financial planning.

Regular financial reporting and analysis help identify trends and areas for improvement, allowing for proactive management of funds.

2. Fundraising and Development:
Create a standardized donor management system. A comprehensive CRM can track donor interactions, manage communications, and streamline fundraising campaigns. Your database tracks your relationships and your relationships are the lifeblood of your organization.

Systematizing grant applications and reporting ensures consistency and efficiency, increasing the likelihood of securing funding. Funders want to see that you are responsible and will steward the resources they give you well.

3. Program Delivery:
Establish detailed project management frameworks for each program. These should include timelines, roles, and responsibilities, ensuring that all team members are aligned and projects are delivered on time and within budget.

Make sure tracking metrics are included in the framework. You’ll thank yourself for this later when you’re writing grant applications to keep those programs funded!

4. Human Resources:
Implement standardized hiring, onboarding, and training processes. Clear job descriptions and performance metrics help in recruiting the right talent and fostering a productive work environment.

Regular performance reviews and professional development opportunities keep staff engaged and motivated. It’s easy to think in a small organization that HR practices don’t matter, but they actually matter even more.

The Financial Payoff

Focusing on operations and systematization doesn’t just make your nonprofit more efficient; it also leads directly to financial stability:

1. Cost Savings:
Efficient operations reduce waste and redundancy, saving money. For instance, streamlined procurement processes can lower costs, while efficient project management minimizes budget overruns.

2. Increased Funding:
Donors and grantmakers are more likely to support organizations that demonstrate sound management and operational efficiency. Transparency and professionalism in operations build trust and credibility.

3. Sustainability:
Financial stability is about more than just balancing the books; it’s about building a sustainable future. Systematized operations free up time, resources, and unnecessary mental worry, allowing leadership to focus on strategic planning and long-term growth.

Taking the First Steps

If your arts nonprofit hasn’t yet prioritized operations and systematization, now is the time to start. Begin with a thorough assessment of your current processes, identify areas for improvement, and develop a plan to implement standardized systems. Engage your team in this process to ensure buy-in and successful adoption.

Remember, the goal is not to stifle creativity but to create a stable foundation that supports and enhances your artistic vision. With streamlined operations, your arts nonprofit can achieve greater financial stability, allowing you to focus on what you do best: bringing the transformative power of the arts to your community!


Another first step you can take is getting free support in assessing and streamlining your organization's operations: Schedule a free consultation with me today!
Schedule a free consultation
Cheri Jamison is an Arts Consultant with over 13 years of experience in arts and nonprofit management. Cheri Jamison Consulting LLC focuses on strengthening organizations through capacity-building, executive coaching, board training, and professional development. www.CheriJamison.com

Nonprofit Thoughts with Cheri Jamison

1/31/2024

 
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"Nonprofit Thoughts with Cheri Jamison" is an interview post collaboratively written by Cheri Jamison Consulting and Brian Williams, Dandelion Consulting.
​Originally posted Jan 31, 2024 on the Dandelion Consulting Blog.

Brian Williams: I met Cheri Jamison back in 2017 when we served on the board of the Arts Council of Johnson County. My first impression of Cheri was how observant and thoughtful she was. She often had insights that others hadn’t thought about. Cheri brings a diverse skillset to any conversation and I wanted to collaborate with her on an article about working with nonprofits, arts organizations in particular.

The lowdown on Cheri Jamison:
She is the daughter of a professional violinist and marriage family therapist, so she grew up surrounded by artists and developed a keen interest in human nature. She studied music and psychology in college, and after several years of performing music professionally moved more into the administrative side. She is a passionate advocate for the arts and still finds great joy in singing. She’s always been drawn to the nonprofit sector because of her personal values and desire to serve.

Cheri’s career began in Los Angeles when she was recruited by the president of a nonprofit to create their human resources department. She later joined Cadenza Artists, a music agency start-up, as an artist advocate and was promoted multiple times to more senior roles, including Vice President of Operations on the executive team. After pitching an idea for a Performing Arts/Events Center at Unity World Headquarters to the CEO, she was hired as the Outreach Program Manager, where she oversaw partnerships and events for five years. During that time, she was also part of the advisory board of the Arts Council of Johnson County. Cheri started her consulting work with arts and culture organizations primarily when she moved to the Pacific Northwest in 2022.

What type of nonprofit consulting do you provide for nonprofits?

My passion for the arts, combined with over 12 years of experience in the nonprofit and performing arts sectors, uniquely positions me to support my clients in a variety of ways. 
 
Here are some of the ways I support my clients:
🔷  Strategic planning
🔷  Streamlining operations
🔷  Executive coaching
🔷  Board training and development
🔷  Professional development workshops, training, and keynotes
🔷  Event production, including concerts, fundraising galas, and retreats
🔷  Marketing and branding/website redesign
🔷  Market research surveys, music census and economic impact studies
🔷  Creative economy and music policy advocacy
🔷  Advising businesses that hire musicians on best practices
🔷  Career coaching for emerging and established artists and professionals
 
I've worked with nonprofits, for-profit businesses, arts service organizations, higher education, government agencies, and individuals. Because of my diverse professional background and skill set, I offer a wide range of services (often needed by clients who wear many hats in their work), so you get support where you need it most.

What is the number one challenge you hear from clients you support? How do you begin to work with them on that challenge?

People come to me with all kinds of challenges, but I think at the core, they are asking, “How do I make this work?” often with a fundraising or sustainability flavor to it. A common theme I also hear is that nonprofit leaders feel like they are alone in the room and burned out, trying to “build the plane while flying it.”
 
The first thing I always do is listen. Each situation is unique. Even when I have initial free consultations, I offer resources on how they can start building their support network, whether that’s leveraging their board or finding a local service organization that can connect them to other leaders in their community.

Unfortunately, the nonprofit sector has been hit pretty hard with so much burnout and turnover. What advice do you have for nonprofits struggling with this?

Limited resources, burnout, and turnover are common in the nonprofit sector. They are valid challenges that deeply impact nonprofit leaders on a physical, mental, and organizational level. 

Whenever I hear these issues from clients, I dig a little deeper to find out what the underlying causes may be. 

Here are just a few reasons:
 
Lack of resources—perhaps the organization's budget or fundraising or revenue expectations are unrealistic, and some courageous conversations need to happen with the board. 

Burnout could be caused by negative self-talk or poor mental health, a lack of boundaries where the leader needs to learn how to say no (but feels guilty about it), needs to empower others, and/or document common operating processes so that tasks can be delegated. 
 
Turnover is an especially complex issue because it could stem from a multitude of issues, such as company culture, the wrong people in the wrong roles, management issues, a lack of clear agreements and expectations (or holding people accountable), compensation that doesn’t meet employee needs, etc. 

We can’t separate the humans involved from the organizational issues. We have to support both.

With my master’s degree in psychology, I can help my clients navigate both the inner and outer challenges going on in their nonprofit. 


It’s hard to step back and reflect on your own organization when you’re in the thick of financial challenges, burnout, or turnover issues, so it’s helpful to have a neutral party like an executive coach or consultant to help talk it through.

What advice would you have for someone wanting to start their own nonprofit?

I recently wrote an article all about this! While it’s geared towards arts nonprofits, the information is universal to the nonprofit sector: “Should I Start an Arts Nonprofit?”

In a nutshell, it’s a personal decision that may or may not be a good fit for you. Also, there are a record number of nonprofits being started every day, so check to see if there are other nonprofits in your local community doing the same thing.

Consider joining or supporting an existing nonprofit rather than starting something new. If that service doesn’t exist in your area, then you may have found a needed service for your community!


Fiscal sponsorship is an alternative option that’s been very successful in the arts and culture sector, allowing individuals or groups to be sponsored by a more established nonprofit in order to apply for grants and receive tax-deductible donations from supporters.

There are a lot of factors to consider, so I encourage introspection and research before applying for 501(c)(3) nonprofit status.

Any final nonprofit thoughts for working in the sector as we begin a new year?

If you haven’t already, re-engage with your staff and board. Reflect on what you learned last year. What worked and what didn’t? Celebrate wins and share gratitude. Get clear on realistic goals for the upcoming year and how you want to do things differently. Let them know how you want to be supported as a nonprofit leader and listen for what they need as well, then make a plan for how to get that support in place. You got this!

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. www.CheriJamison.com
 
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. www.dandelionconsulting.co

    Author

    Cheri Jamison is a creative economy consultant working at the intersection of arts, culture, music, and economic development. She helps organizations and communities develop practical strategies, strengthen infrastructure, and build 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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