Fiscal Sponsor Information for Overseas Organization
Tyndale House Foundation may consider a grant request from an overseas organization that does not currently have 501(c)(3) Tax Exempt Status in the United States if the grant application is sponsored by a “fiscal sponsor”. We will allocate grants to “fiscal agents” if they accept fiscal sponsorship responsibility.
A fiscal sponsor is a public charity seeking funds for a project compatible with its own mission but implemented by an organization overseas without public charity status in the United States. The Overseas Organization is autonomous, planning and managing their own programs and funds. The Fiscal Sponsor is their link to funding from the United States. In some cases they may have tax exempt status in their own county. This does not satisfy the U.S. Tax Code requirements placed on foundations.
A letter of agreement in which the fiscal sponsor indicates the relationship and a willingness to act for the Overseas Entity is required. In such an agreement, the fiscal sponsor stipulates that the project is compatible with the sponsor’s own mission and purpose, and that the sponsor’s management has agreed to such stipulation. The Overseas Entity agrees to provide all project information and follow-up reports as required.
The fiscal sponsor will receive a receipt of any gifts made by Tyndale House Foundation and will work with the overseas organization on the timely transfer of project funds. The handling of such funds by both organizations should always reflect normal procedures and accounting. In some cases, the fiscal sponsor may charge a fee or a percentage of the grant allocated. This fee should be reasonable and applicable only to expenses that might be incurred in the handling of the specific grant. The Foundation may request information substantiating any fees.
Sponsoring organizations should independently investigate their legal responsibilities to be sure they comply with IRS and other U.S. Government regulations pertaining to fiscal sponsorship.
For a list of articles, blogs and conversations regarding Fiscal Sponsorship see:
Six Ways To Do It Right
What is Fiscal Sponsorship
Alder & Covin