Frequently Asked Questions
Expand the sections below to read through FAQs related to TAPAZ’s Fiscal Sponsorship program.
Fiscal sponsorship allows TAPAZ to accept funds for a project’s activities. We will also send a recognition letter to donors, provide grant tracking, check writing, assist with reviewing and submitting funding requests such as grant applications, provide monthly reporting, and front working capital to entities if they have a secure funding source.
Establishing an independent 501(c)(3) is an expensive process. Fiscal sponsorship is an efficient, cost effective way to implement a project mission while having “an outsource accountant” handle the accounting function. Other reasons to consider fiscal sponsorship are that some grant applications require an entity to have been established for a particular number of years, and some grants also require two or more years of audited financials. Also, some entities prefer to not be a 501(c)(3). You can also read this article from Tides Sector New England to understand how fiscal sponsorship nurtures nonprofits.
Yes. Depending on the level of service required, fees range from 6% to 7% of the total funds received for the project. For government grants an additional 3% is added to cover greater auditing and reporting requirements.
No. Our goal is to assist smaller nonprofits, unincorporated associations or alliances of organizations for as long as they need. This can mean helping groups determine the viability of a new endeavor or helping find a permanent home for a project within an existing nonprofit that shares a similar mission.
Yes. TAPAZ provides general liability insurance that covers all sponsored projects. Any cost for specialized or specific insurance to cover property or activities attributable solely to the sponsored project must be taken from project funds.
This is not a problem. Often, nascent or smaller nonprofits lack certain requirements, such as an audit, to apply for competitive grants. By becoming a sponsored project for a particular grant opportunity, you will have the benefit of TAPAZ’s audit and track record.
Any person, group, association or organization.
Because the projects are legally part of TAPAZ and integral to our mission, projects are able to receive charitable donations and grants available only to tax-exempt organizations. TAPAZ is legally and financially responsible for all our projects and activities.