Find Funding or Fiscal Sponsor
Most of your agency's initial funding will come from:
- stakeholders (Steering Committee/Board members should give time and money)
- community (churches, local services groups, etc.)
- fundraising events
Before your organization is an incorporated, tax-exempt nonprofit, you will need a fiscal sponsor (or fiscal agent).
What is a fiscal sponsor/agent?
Jeanne Vogel and Fundraising Innovations defines a fiscal agent as “an organization that manages the finances for another organization, generally until the second organization gets on its feet.”
The fiscal sponsor applies for funding under their nonprofit status and passes the money through to the second organization. The emerging agency does the grant writing and other fundraising work.
Choose your fiscal agent carefully. Choose an agency that:
- has a mission/vision that compliments yours
- can mentor you in fundraising, marketing, grant writing, etc.
- is not in direct competition with you for fundraising and grants
- get board approval from both boards
- make sure the terms of the relationship are in writing
- plan to be independent from the fiscal sponsor as soon as possible