Why Fiscal Sponsorship? - Compass Charitable Partners

Young woman volunteering at charitable foundation.

What Are The Benefits Of Fiscal Sponsorship?

Fiscal sponsorship is an excellent alternative to starting and operating your own 501(c)(3) organization. Some of the benefits and advantages include:

Launch Faster

The process to start a nonprofit and obtain 501(c)(3) status from the IRS can take up to 12 months or more. Approved projects under fiscal sponsorship can begin operating almost immediately!

Spend Less

Typical startup costs for launching a new 501(c)(3) organization, including legal, accounting, and filing fees, start at around $5,000 and can go higher. Fiscal sponsorship costs are much lower and usually consist of an onboarding fee, plus a percentage of funds raised.

No Incorporation or Board of Directors Required

Most 501(c)(3) organizations are nonprofit corporations. All of them are required to have a board of directors. With a sponsored charitable project, none of that formality is required. All that’s needed to get up and running is a project manager who will be the point person for the relationship with the fiscal sponsor.

Donors Give Tax-Deductibly

Sponsored projects are responsible for raising their own support from donors. But because donors give directly to the fiscal sponsor (which is an IRS-recognized 501(c)(3) organization) on behalf of the project, gifts are tax-deductible to the donor.

Why Choose Compass Charitable Partners?

At Compass, we love working with good people doing great things in their communities. As one of America’s newest and fastest growing fiscal sponsors, we’re committed to compliant, best-practice, and to ensuring a positive, empowering experience for our project managers. Benefits of partnering with us include:

Get up and running in days, not months.

Launch for less than 20% of the typical cost of starting your own nonprofit.

Solicit tax-deductible donations for your project using our 501(c)(3) status.

Every partner has their very own project page that is ready for online donations.

Accept credit card donations through our platform with no processing fees charged to you.

Project donors can setup recurring, monthly donations with ease.

Receive guidance and oversight from our expert staff.

Have access to our extensive knowledgebase.

The most compelling reason of all? Our organization exists so that you don’t have to start your own stand-alone nonprofit in order to accomplish great things!