Fiscal Agency

Already enrolled in our Creative Activist Program? Ready to begin your fundraising campaign?

What is Fiscal Agency? It’s a fancy way of saying that your project can receive charitable grants and tax-deductible contributions, including monetary and in-kind donations under the umbrella of Creative Visions’ publicly supported 501(C)3 non-profit organization.

We alleviate the costly, time-consuming legal and adminstrative infrastructer required to set up your own non-profit, so you’ll have more time and freedom to focus on your mission, project and fundraising strategies. Members of our Creative Activist Program are eligible to apply for Fiscal Agency as an additional resource for their fundraising campaigns. CVF carefully evaluates the mission and programs of these exceptional members and determines if their mission, programs, and activities are consistent and aligned with CVF. When Creative Activist Members are accepted for Fiscal Agency, they will enter into a formal and mutually beneficial agreement with CVF. With sponsorship, Creative Activist Members are able to receive:
1. Tax Receipts for Donors

CVF provides Creative Activist Members with fiscal sponsorship via CVF’s 501(c)3 status. With this tax-exempt status, Creative Activist Members will be able to fundraise at events, from individuals, corporations, and foundations, by requesting that donations be made to CVF to support the programs and activities of Creative Activist Members. CVF will receive and administer tax-exempt donations and issue tax-deductible reciepts to each donor.

Receipting is handled in one of two ways, depending on how the donation is made:

After an online donation is made, Paypal automatically generates a receipt and sends it to the donor’s email address.  Meanwhile the donor is taken to a web page having a thank you letter with directive to print the letter and Paypal receipt for tax records.

When a donation is made by check or wire, the donor information is sent to each Creative Activist on a monthly statement.  Creative Activists are responsible for inserting the donor information into the letter template found in the CAP handbook and receipt each donor directly.

2. Donate Button

Creative Activist Member Profile pages will feature an official donate button that sets them apart from general membership and identifies their new status as fiscally sponsored by Creative Visions Foundation.

3. Budget and Accountability

After completing the Fiscal Agency application and agreeing to its terms of commitment, Creative Activist Members will establish an accounting system and budget that can be easily adapted and shared with funders, sponsors, and other interested parties. Creative Activist Members will provide year-end financial statements for its prior calendar year to CVF on or before June 1 of the following year.

4. Sponsorship Fee

For all monetary contributions processed through CVF’s Fiscal Agency, Creative Activist Members will provide CVF with the following on an annual basis:

10% of gross revenues raised ($1 to $150,000), OR
8% ($150,001 to $300,000,) OR
5% ($300,001 to $750,000), OR
3% ($750,001 and up).

CVF will disburse funds to Creative Activist Members within 10 days of each month for collections from the preceding month. CVF agrees to deliver within 20 days after the end of each month a complete statement showing the gross revenues received by CVF and the amount retained by CVF.

Please note that CVF will administer yearly evaluation sheets to each Creative Activist Member. These progress reports will allow us to measure your impact and let us know how we can better serve you in your efforts.

5. Other Frequently Asked Questions

GRANTS

Q: Does Creative Visions give Grants?

A:Creative Visions does not offer grants, but you can apply for Fiscal Agency under the Creative Visions umbrella. Fiscal Agency is fancy way of saying that qualifying projects can receive charitable grants and tax-deductible contributions, including monetary and in-kind donations through our foundation since we’re already set up as a publicly supported 501(c)3 non-profit organization. We take care of the time-consuming legal stuff and administrative infrastructure, so you’ll have more freedom to focus on your mission, project and fundraising strategies.

DONATIONS

Q: How does disbursement of donations work?

A: We mail a check in the name of your project to you during the first week of each month for collections from the preceding month.

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 as an individual. Check out this website to set it up: http://www.irs.gov/businesses/small/article/0,,id=102767,00.html?portlet=4

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 $36 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. Anyone who donates to your CAP project on our website will immediately receive a printable receipt for their tax records. However, we encourage you follow up with an additional thank you letter. We find it’s a great way to foster long-term relationships. We will provide you with monthly reports of your donors and a template letter than you can edit to describe your program.

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.

REPORTING GRANTS

Q:  How do I report grants?

A:  You can report any and all grants made to your CAP project as taxable income for that year.  Creative Visions Foundation files 1099s for its fiscally agented projects.  A 1099 is a report of Miscellaneous Income of at least $600 for services paid to an individual, partnership, or estate.

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 exclusively for your project.

Download Fiscal Agency Application Here