Frequently Asked Questions
What is fiscal sponsorship?
A fiscal sponsor is a nonprofit organization that provides fiduciary oversight, financial management, and other administrative services to other groups. Fiscal sponsorship is a practice that has evolved as an effective and efficient means of starting new nonprofit initiatives or seeding social movements. In a typical fiscal sponsorship relationship, an established nonprofit organization confers its tax-exempt status to groups that are engaged in activities that align with the fiscal sponsor’s mission, typically for a fee. Fiscal sponsor organizations are responsible for assuring the activities of projects fulfill their mission and tax-exempt purpose. Fiscal sponsor organizations may be 501(c)(4) social welfare organizations, like Beyond Impact, or 501(c)(3) charitable organizations; the fiscally sponsored groups must follow applicable laws and regulations, and the policies of the fiscal sponsor, to maintain the relationship.
Fiscal sponsor organizations like Beyond Impact provide a nonprofit infrastructure for their fiscally sponsored partners, support donations to projects, and enable groups to focus on their mission.
Fiscal sponsorship can offer a valuable alternative to starting a stand-alone nonprofit organization. Partners fiscally sponsored by Beyond Impact are able to access resources and cost, process, and infrastructure efficiencies created by being part of a collective.
Why choose fiscal sponsorship?
A well-run nonprofit can expect to spend between 20-30% of annual revenue on administrative and overhead expenses. For the comprehensive suite of back-office services and capacity-building support that Beyond Impact provides, typical fiscally sponsored projects pay only between 7% - 10% of their annual revenue. Fiscal sponsorship can be an efficient, economic way to reduce the cost of running an organization and still maintain the integrity of the organization’s purpose.
What are the eligibility requirements to open a fiscally sponsored project or fund at Beyond Impact?
There are two major eligibility requirements to open a project or fund at Beyond Impact: mission alignment and confirmed funding.
Mission Alignment. All funds and their grantmaking purposes must be aligned with Beyond Impact’s vision, mission and approach.
Confirmed Funding. You must have a minimum of $100,000 of committed funding.
Commitment to the Partnership. Beyond Impact’s Board of Directors has full governing authority, and full legal and fiduciary responsibility, for all fiscally sponsored projects, employees, and activities of Beyond Impact. To uphold Beyond Impact’s legal status as a tax-exempt nonprofit and ensure all fiscally sponsored projects comply with applicable laws and regulations, Beyond Impact home office staff works with project staff to monitor and maintain the project’s finances, human resources, payroll, leases, grants, contracts, and insurance. This partnership is at the heart of the fiscal sponsor relationship.
Please note, Beyond Impact fiscally sponsored projects must have a U.S. base of operations and cannot employ staff outside of the U.S. and its territories.What is the process to become fiscally sponsored by Beyond Impact?
STEP 1: Determine if your project meets eligibility criteria above.
STEP 2: Begin the process by completing the Partner With Us form on our website.
STEP 3: Have a brief screening call with Beyond Impact staff to discuss your mission, program activities, needs, and timeline to assess if your project is a good fit for Beyond Impact, and vice-versa.
STEP 4: Beyond Impact staff invite those eligible candidates to a secondary informational phone call with the full Partnerships Team to discuss program activities and needs in more detail.
STEP 5: Beyond Impact staff invite those eligible candidates who fit our current criteria to submit an application. Application is by invitation only and projects are onboarded on a rolling basis.
STEP 6: If application is approved by Beyond Impact staff, the project is onboarded and is active once initial funding is received by Beyond Impact and new partner orientation is completed.
Are donations to Beyond Impact tax-deductible?
No. Contributions to Beyond Impact, including contributions intended for a specific fiscally sponsored project of Beyond Impact, are not tax deductible as charitable contributions or as business expenses under Internal Revenue Code Section 162(e). Contributions may be used for lobbying or political activity, and are not earmarked for a particular purpose.
How long does it take to get set up as a fiscally sponsored project?
Opening a project at Beyond Impact generally takes 4 to 6 weeks upon receipt of a completed application. Please note that any complexities or clarifications uncovered during the application review process may prolong the timeline to open a project.
What comes first - fiscal sponsorship or finding funding?
While these activities can be done simultaneously, before submitting the Partner With Us form to Beyond Impact, you must have $100,000 in funding confirmed as well as a clear fundraising plan to sustain your charitable efforts.
Does Beyond Impact assist its fiscally sponsored projects with fundraising or provide them with funding?
Due to limited capacity, Beyond Impact’s scope for fundraising assistance focuses on supporting projects with donor briefings, leveraging our platform to amplify their storytelling, and sharing grant resources.
Beyond Impact does not provide its fiscally sponsored projects with funding. If you are seeking funding, we invite you to learn more about our Healthy Democracy Action Fund, which opens on a seasonal basis.What is Beyond Impact looking for in an application?
We’re interested in learning about who you are, your values, and who you serve, in addition to your development strategy, budget, and how your work aligns with Beyond Impact’s vision, mission and approach.
How does Beyond Impact handle my organization's funds?
Beyond Impact manages all incoming and outgoing funds for each of its fiscally sponsored projects and processes all financial transactions on their behalf. Beyond Impact provides a financial orientation that covers Beyond Impact’s financial services overview, budgeting, cash management, coding expenses, monitoring expenses, the Beyond Impact chart of accounts, systems training (including NetSuite), and reading and utilizing the monthly financial statements prepared by Beyond Impact. Invoices are paid via check or ACH on a weekly basis and expedited payments are available for an extra charge. Fiscally sponsored projects are able to access their funds via purchase cards, and direct invoicing. Fiscally sponsored projects are responsible for coding transactions, submitting original receipts, honoring our timelines, and monitoring their own cash flow.
Does Beyond Impact provide insurance to fiscally sponsored projects?
Beyond Impact projects are covered by a robust insurance portfolio structured to protect against a broad range of property & casualty and management liability exposures. Insurance costs are not included in the standard fee charged for Beyond Impact’s fiscal sponsorship services. You will instead receive an annual allocation bill for your insurance coverage. Allocation amounts vary across projects but are based on risk factors such as revenue and employee count. Please note that some specialized programs (such as farming, legal services, and counseling) may require additional coverage.
Are Beyond Impact fiscally sponsored projects permitted to lobby?
Yes. Under IRS rules for 501(c)(4) organizations, Beyond Impact fiscally sponsored projects may engage in an unlimited amount of lobbying, provided that the lobbying is mission-related; Beyond Impact’s Legal, Risk, & Compliance team helps projects understand and comply with applicable lobbying registration and reporting requirements.
Does Beyond Impact provide benefits to employees of a fiscally sponsored project?
Beyond Impact serves as the employer for our fiscally sponsored project’s employees. As such, it is required to offer all full-time staff Beyond Impact’s comprehensive health and dental benefits package; part-time staff may also be eligible. There is a selection of HMO and individual provider plans to choose from. Coverage for spouses, children, and domestic partners is also available at the discretion of each individual project.
What if I need some, but not all, of the fiscal sponsorship services provided by Beyond Impact?
Beyond Impact provides financial, human resources, and legal, risk, & compliance services to projects. A comprehensive list of these services is available here. At this time, we are not able to allow groups to choose from among the offerings. In addition, Beyond Impact provides capacity building programming and strategic advising services that are tailored to the needs of each partner.
What does fiscal sponsorship at Beyond Impact cost?
For the comprehensive suite of services that Beyond Impact provides to fiscally sponsored projects, including financial management, human resources, legal, risk, & compliance services, and capacity-building support, projects pay only 7% - 10% of their annual revenue.
A well-run independent nonprofit can expect to spend between 20-30% of annual revenue on administrative and overhead expenses. Beyond Impact fees are in line with other fiscal sponsors practicing similar models of fiscal sponsorship.
After the first year of activity, projects that exceed $1 million in operational activity can qualify for a reduced fee for revenue that exceeds $1 million.
Can I open a fund to start fundraising?
No. Funds at Beyond Impact must be opened with a minimum of $100,000 of committed funding.
Can we apply for government funding?
Since Beyond Impact projects lobby at the federal level, Beyond Impact is ineligible to receive federal grants, awards, or loans under the federal Lobbying Disclosure Act (LDA). Beyond Impact may be eligible for funding from certain state or municipal agencies, if such programs do not include any money from the federal government; please indicate your desire to seek state or local funding in your application so a determination can be made.