Below are answers to some of the common question on fiscal sponsorship. Click each header to see the answer:
Is my group elibible to have the Grassroots Fund as fiscal sponsor?
Your group could be eligible to use the Grassroots Fund as a fiscal sponsor if:
- Your group received a Grassroots Fund Seed, Grow or Harvest grant in the last three years.
- The group has no – over very limited – paid staff capacity and the group’s annual operating budget is around $25,000 or the group is engaged in a one-off project and does not plan to remain engaged for the long-term (for example, the group is engaged in a legal argument or is fundraising for a specific capital improvement).
- The specific activities for which the grantee seeks a fiscal sponsor are consistent with and supportive of the mission and grant guidelines of the Grassroots Fund
If you meet these criteria, please review the Grassroots Fund's fiscal sponsor policy. The use of a Fiscal Sponsor Agreement is required before the Grassroots Fund can act as your groups fiscal sponsor. You can start the process by filling out this short online application. Please note that the Grassroots Fund has limited capacity to manage fiscal sponsorships and submitting an application is no guarantee for fiscal sponsorship.
How does a fiscal sponsorship work?
The Grassroots Fund assumes responsibility for the fiscal management of grant funds and donations, and will maintain sufficient documentation for the financial and compliance audit of grant awards. The Grassroots Fund is responsible for recording all grant receipts and disbursements.
The Grassroots Fund will log all gifts into our general grant pool and will have full control over the funds received from the donors. We aim to fulfill each donor’s request to direct funds towards a fiscally sponsored group, but if a group is operating outside of the mission of the Grassroots Fund, we retain the right to hold the funds.
Are fiscal sponsored groups programs of the Grassroots Fund?
No. Fiscal sponsored groups are groups that advance the mission of the Grassroots Fund, but are not programs of the Grassroots Fund. As such, the Grassroots Fund is not a fiscally sponsored group’s governing body, and is not responsible for any fiscally sponsored group’s tax filing, payroll information, banking, etc
Is there a fee to have the Grassroots Fund as fiscal sponsor?
Yes. The Grassroots Fund will charge a 5% administration fee for both foundation grants and small, individual donations from the month’s total before distributing the check
How can donors make donations?
Donations can be made by check and sent to: New England Grassroots Environment Fund, ATTN: Chetana Parmar, P.O Box 611, Newmarket, NH 03857. Donors can also make online donations through our Online Donation Form and indicate that they would like to the donation made out to a fiscal sponsored group
To whom should a donor write a check?
All donations on behalf of fiscal sponsored groups must be made to: New England Grassroots Environment Fund, with the name of the fiscal sponsored group in the memo line.
How often are funds disbursed?
Funds are distributed once a month (typically the first or second week of the month)
Do all donations need to be made to the Grassroots Fund?
No. If a donor doesn’t require tax exemption to make the donation, then the donation can be made directly to your group. The Grassroots Fund’s role is for donors and foundations that require that tax exemption in order to make their gift.
Can a group purchase items under a fiscal sponsorship with the Grassroots Fund?
No, we do cannot allow our fiscally sponsored groups to use the Grassroots Fund’s tax-exempt status for purchases.
Can a group receive tax-exempt non-financial donations through the Grassroots Fund?
No, the Grassroots Fund only manages financial (i.e monetary) donations on behalf of our fiscally sponsored groups
Please contact Bart Westdijk to further discuss fiscal sponsorship.