Looking to apply for Flexible Support, but your group doesn’t have federally tax-exempt status? Consider applying with a fiscal sponsor.
What is a fiscal sponsor?
A fiscal sponsor is a federally tax-exempt 501(c)(3) nonprofit organization that receives MRAC grant money directly and manages the financial aspects of the project for your group if you are awarded a grant.
What are the requirements for my group if we apply with a fiscal sponsor?
- Your group’s total cash expenses must be $400,000 or less for the most recently completed fiscal year.
- Your group must have its own address in one of the seven metro counties. P.O. boxes are not acceptable.
- Your group must have at least three (3) people in a leadership position.
What are the requirements for the fiscal sponsor?
- The sponsor must be registered with the IRS as a federally tax-exempt 501(c)(3) nonprofit organization. This includes religious institutions.
- The sponsor must have an address within the state of Minnesota (You can use the IRS’s tax-exempt organization search to confirm your sponsor’s status and address).
- The sponsor must have an active nonprofit organization registration with the Minnesota Secretary of State. You can search the Secretary of State database to confirm their registration. (If you are having trouble finding the organization, change the “search scope” to “contains.”)
How do we secure a fiscal sponsor?
It is the group’s responsibility to research potential fiscal sponsors and secure the sponsorship. We strongly recommend reaching out to potential sponsors and reaching a sponsorship agreement before starting your Flexible Support application.
In the application form on Submittable, you will send the formal request form directly to your fiscal sponsor. Your fiscal sponsor must complete this form before the application deadline for your application to be eligible.
Can we change our fiscal sponsor?
With few exceptions, MRAC grantees are not permitted to change their fiscal sponsors for the duration of an MRAC-funded project. Once a grant project is complete, grantees re-applying for future MRAC funding may select a new fiscal sponsor.
If you have questions about fiscal sponsorship, please contact flexiblesupport@mrac.org.