Differ between Model A and Model C fiscal sponsorship?

Model C is generally more affordable, with fees ranging from 3% to 8% of incoming funds, depending on the nonprofit. Model A costs more because it provides full administrative support, including payroll and bookkeeping. The exact percentage varies based on the fiscal sponsor's services.

There are two common models:

  • Model C: A "pass-through" sponsorship where the nonprofit receives donations on behalf of the project and distributes the funds. The project operates independently but must handle its own tax reporting. This model is usually less expensive, with fees ranging from 3% to 8%.

  • Model A: A full-service sponsorship where all financial and administrative tasks, including payroll, bookkeeping, and tax compliance, are managed by the nonprofit. Funds remain within the nonprofit’s bank account, and the project leader can access and track them.

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501(c)3 Status Extended to Mission Aligned Projects

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How does fiscal sponsorship help with fundraising?