Tides Fiscal Sponsorship Agreement

The royalty structure should be defined in the tax sponsorship agreement or policy. Fees can range from 25 per cent, but an average fee is about 10 per cent. Some tax sponsors take it from the income they are received; others will take the tax on the costs incurred. (See fiscalsponsordirectory.org for a national list of tax sponsors. This list, managed by the San Francisco Study Center, contains information about each tax sponsor, including fees.) The preconceived grant relationship model of tax sponsorship is largely misunderstood and easily used as a “direction” if the tax sponsor does not exercise the required “discretion and control.” The key element to avoid in tax sponsorship relationships is the creation of a “pass-through” or “driving” agreement. The tax sponsor must exercise independent “deviant power” or “discretion and control” over the tax-sponsored project in order for the IRS-Stamm relationship to be secured. The group collaborated and conducted a sweeping survey of the current practice of tax sponsorship across the country. This collaboration highlighted a series of national and regional gatherings over the next six years in Los Angeles, Philadelphia, Oakland, Denver and Washington, D.C. that brought together more than 140 practicing tax sponsors.

These new good practice guidelines are a product and a culmination of these discussions. Fractured Atlas is the country`s largest tax sponsor for the arts. He works with thousands of artists and arts organizations nationwide to provide education and donation assistance. 1. Do you have a written agreement with your tax sponsor? While the NNFS only published its best practice policies this spring (2010), they are the culmination of years of work and discussions among tax sponsors from across the country, sponsors of all sizes representing a variety of disciplines. The best way to disseminate these guidelines, and more importantly, is widely followed for the philanthropic community to ask its fellows to comply. To avoid confusion, it is preferable to use the term tax sponsor, as it clearly indicates that the sponsored organization has agreed to financially support the sponsored project. Year of organization was a 501 (c) (3): 1976 year of the first tax sponsorship: 1977 Number of sponsored projects: 200 In 2003, Through a grant from the Kellogg`s Foundation to strengthen the field of tax sponsorship, Tides Center conducted a comparative study that led to the first meeting of tax sponsors to discuss issues and issues related to the use of tax sponsorship as a mechanism to support innovation in the not-for-profit sector.

In early 2004, the leaders of these organizations decided to meet regularly to define and build together the relatively unknown and very misunderstood field of tax sponsorship within the associative sector.

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