A fiscal sponsor is a charitable 501(c)(3), nonprofit organization that provides oversight, both operationally and financially, to non-501(c)(3) charitable projects. Sponsorship works through a contractual agreement between the sponsor and the individual or group conducting the project. Sponsorship provides the project most of the same benefits that come with IRS 501(c)(3) status, without the necessity of applying for that status directly. Donors to projects give to the sponsor, designating their gift to the benefit of the project. Potential tax-deductibility for the charitable contribution comes through the sponsor’s 501(c)(3) status.
For a more detailed explanation, please see What Is Fiscal Sponsorship?