fiscal sponsorship

CATALYST FISCAL SPONSORSHIP

Fiscal Sponsorship enables your project to receive grants and tax-deductible contributions, including monetary and in-kind donations through

WHAT IT IS

Our fiscal sponsorship program is one of the many ways that Creative Visions supports creative activists - those that utilize the power of the arts and media to inspire positive social change, particularly in the areas of human rights, the environment, and youth and education.

With Creative Visions as your fiscal sponsor, we can provide your project with access to grants and tax-deductible contributions without you having to go through the time-consuming and administrative challenges of establishing a 501(c)(3) organization. These projects can accept tax-deductible donations online, by check, in-kind, and through grants.

 

HOW IT WORKS

Creative Visions retains a percentage of all funds raised to cover legal, accounting and administrative costs.  These rates begin at 7% and tier correlative to the amount of funds raised.  Please reference the rates below:

 

RATE                    PROJECT BUDGET

                                                                                   7%                               $0-$150,000

                                                                                  6%                               $150,000-$500,000

                                                                                  5%                               $500,000-$1M

                                                                                  3%                               $1M+

*Merchant service processing fees are additional 3.2 – 4.5% via Classy (i.e. AMEX/VISA/MasterCard)

 

 

BENEFITS

1. ONLINE DONATIONS

Access to Classy, the leading online donation and fundraising platform for nonprofits

2. INTRODUCTORY CONSULTATION

Upon acceptance, you may set up a phone call with the Creative Visions team to discuss your project

3. FUNDRAISING TOOLS

Reference resource guides through Creative Visions and Classy

4. CAPSHARE

Access to the custom-built online creative activist’s project management portal CAPShare

5.PROJECT MANAGER + SUPPORT

Access to a Creative Visions staff member who will respond to any inquiries within 72 hours

6. WEEKLY TECHCORE CALL

Creative Visions TechCore hosts a weekly open call exclusively for fiscally sponsored projects - bring your questions!

7. ASSETS OF THE NETWORK

Access the community and online resources within the Creative Activist Network

8. EXCLUSIVE EDUCATIONAL EVENTS

Connect with other fiscally sponsored projects at panels, summits, and events

 

HOW TO APPLY

To qualify for fiscal sponsorship,follow our simple 2 steps…

               Step One: JOIN the Creative Activist Network 

               Step Two: SUBMIT an online application for approval

 

When submitting an application, keep in mind:

  • The non-refundable application fees are:
                    $85 for general application
                    $165 for expedited application (fiscal sponsorship provided in under 3 business days)

  • The application requires a detailed budget - please don't forget to attach!

  • Tangible fundraising strategies may include the demonstration of donor pipeline, high-potential prospects, a crowdfunding strategy, an upcoming event, or the intent to apply for a grant.

 

OTHER FREQUENTLY ASKED QUESTIONS

DONATIONS

Q: How does disbursement of donations work?

A: CVF will mail a check in the name of CAP project by the 15th of each month for collections from the preceding month. Your project will received funds processed online, through our partner Network for Good, two months after they have been collected

1099 REPORTING

*All distributions from CVF are subject to 1099 reporting.  If you become a C Corporation or S Corporation, no 1099 is filed under law.  However, individuals and partnerships do receive a 1099 from CVF.  The theory behind this treatment is that CVF contracts businesses such as CAP projects to perform specific program services, and you are actively engaged in a for-profit business.  There are tax-planning strategies that support income deferral.  Your accountant is the best person to advise you about your particular situation. 

BANK ACCOUNT

Q: When starting a new bank account for the project under the project name, will I need a new tax ID or would I be using the CVF tax ID?

A: When a project sets up their new bank account, the CVF tax ID is not used. Instead we recommend applying for new federal tax ID. 

Q: Must the CAP project's business account be opened in the USA, or can Creative Visions disburse the funds to an International account?

A: Creative Visions can disburse funds to an International account; however, there will be an additional charge of $45 USD to cover our bank's outgoing wire charges. We apply extra scrutiny to overseas projects to concur with US regulations regarding off-shore disbursements.

DONOR RECEIPTS / THANK YOU LETTERS

Q: We want to thank our donors. Will we get reports of who donates in order to send them a thank you letter?

A: We do not send thank you receipts to donors who donate with cash, check or wire transfer. We strongly encourage you follow up with a thank you letter/receipt. We find it's a great way to foster long-term relationships. We will provide your project with monthly reports of your donors and a template letter that you can edit to describe your program is located on CAPShare under “Fiscal Documents.”

MATCHING GRANTS

Q: How do I process a matching grant from my employer?

A: Employers will need confirmation of the original donation before matching it. Sometimes they have a web based, matching grant program. If that's the case, they can email us directly, and we will facilitate the matching grant for you.

LLC VS SOLE PROPRIETORSHIP

Q: How do I decide whether to identify my project as an LLC or as a sole proprietorship? Will either affect my taxes differently?

A: Whether you choose to make your project an LLC or a sole proprietorship will not affect your taxes. That being said, you have to make that decision based on your own liability protection perspective. Next, you will need to obtain an EIN and open a bank account that you will use exclusive for your project.

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