Fiscal Sponsorship and Artists
Art Can Make A Difference
INTRO:
Art is an important part of the human experience. It can invoke various emotions that often coincide intensely with historic moments, positive or negative. Art can be the catalyst of the transformation of a neglected neighborhood or used in the effort to shift the vibe of a business or a school. The power of a film can even have the ability to forever alter the trajectory of its subject. The reality is that art is transformative and necessary, but sometimes funding prohibits artists, who are often working alone, from sharing their gifts with their community. The good news is there are creative ways you may never even heard of to make this charitable work possible.
HOW CAN FISCAL SPONSORSHIP HELP:
Fiscal Sponsorship is a powerful tool for good when it comes to the type of projects artists may find themselves trying to accomplish within their communities. Fiscal sponsors are nonprofit organizations with 501(c)(3) tax-exempt status. By partnering with a fiscal sponsor, artists can receive donations and grants that are tax-deductible for donors, which can make fundraising easier and more attractive to potential supporters. By partnering with a fiscal sponsor, the artist can seek tax-deductible funding immediately, without taking the time needed to establish their, often unneeded, 501(c)(3). This can be especially useful when the project is a one-time endeavor, like a response to a disaster or social movement.
“Everybody has a creative potential and from the moment you can express this creative potential, you can start changing the world.”
UNDERSTANDING THE PROCESS:
It is important for the artist or art group to understand the basics of fiscal sponsorship and the different working models before selecting a sponsor that aligns with their needs. The level of support provided by fiscal sponsors can vary, allowing artists to choose the services that best meet their needs. Some fiscal sponsors offer a range of support options, from comprehensive fiscal management to more limited administrative assistance. The two main models that are utilized are A and C. Each offers pros and cons and should be explored thoroughly before signing any contracts. For example, under Model C fiscal sponsorship, artists or creative projects retain a significant level of autonomy and control over their work, including creative decisions, project management, and fundraising efforts. They are not absorbed into the fiscal sponsor's organization but rather remain independent entities who are liable for themselves. Whereas in Model A, the project becomes the property of the sponsor as they have agreed to bring the entirety of the project under their umbrella. In doing so, the sponsor provides many useful administrative and educational tools while also assuming liability for the project.
CONCLUSION:
It's important for artists to carefully select a fiscal sponsor that aligns with their artistic goals, values, and the level of control they wish to retain. Additionally, artists should establish a clear and formal fiscal sponsorship agreement with the fiscal sponsor, outlining roles, responsibilities, and expectations to ensure a successful partnership. This model allows artists to access the benefits of fiscal sponsorship while maintaining creative independence and control over their projects. A creative dream should not be left unfulfilled because of funding limitations. The power of art is undeniable and fiscal sponsorship may be the path to sharing your gifts and creative voice with the world.
