AfroDesiCity Productions

Fiscal Sponsorship

The Arts & Business Council acts as a fiscal agent for start-up and small arts groups that are seeking to raise funds through grants and donor support but are not yet incorporated as 501(c) 3 organizations. If incorporation is the right next step, we educate and aid organizations during that process as part of our mission to support cultural groups throughout their development. If you are currently seeking fiscal sponsorship, contact us to learn more or download our application for fiscal sponsorship. Find answers to frequently asked questions here.

Meet our current fiscal sponsorees

Hub & Spoke

Hub & Spoke Thank you for supporting Hub & Spoke, a collective of independent audio producers creating high quality and intelligent audio storytelling. We operate…
Read More Hub & Spoke

Eco-Rhythms

Eco-Rhythms A first-of-its kind artwork for the New England region, Eco-Rhythms is a proposed large-scale lighting installation on the Tobin Bridge driven by coastal ecological rhythms…
Read More Eco-Rhythms

#ARTSTAYSHERE

#ARTSTAYSHERE The #ARTSTAYSHERE Coalition is a volunteer organization committed to preventing arts, music, cultural displacement across Greater Boston. We work with communities at risk of…
Read More #ARTSTAYSHERE

Art+Everywhere

Art+Everywhere Art+Everywhere is a global artist-led foundation that supports creative experimentation, collaboration, and care. We create access to funding, programming, and shared growth through a…
Read More Art+Everywhere

Billboard Hope

Billboard Hope Since March 2021, Billboard Hope has curated the work of local artists with the theme, “Hope and Inspiration for the Future” on the billboard…
Read More Billboard Hope

Blue Lips

Blue Lips Blue Lips is short film that centers the implications of sex trafficking on sex workers by following a female character in Argentina. Combining live-action,…
Read More Blue Lips

Culture Saves

Culture Saves Culture Saves is a community-based arts programming organization that seeks to enrich public life by producing and presenting high-quality arts programming for…
Read More Culture Saves

Noir Culture

Noir Culture Noir Culture is an emerging nonprofit dedicated to empowering youth ages thirteen to eighteen in Boston through entrepreneurship, innovation and community enrichment…
Read More Noir Culture

Perfect 36

Perfect 36 Women. Voting Rights. Race. Activism. Change. It all came together in Nashville. In 1920. Perfect 36 is a musical about the passage…
Read More Perfect 36

Quikuchá

Quikuchá Quikuchá is a documentary short engaging different experiences of (im)migration to explore what the process feels like through collaborative image making, first-hand testimonies, and…
Read More Quikuchá

T4T

T4T T4T is a monthly queer open mic and reading series bringing established and up-and-coming transgender writers to Boston.  Thank You For Your Support
Read More T4T

Past fiscal sponsorees

MASARY Studios 
Boston Trans Chorus
Friends of Blakemore Bridge
The People’s Art Movement Fund
Boston Hassle
Symphony Pro Musica

FAQs for Potential Clients

General

Fiscal sponsorship is a contractual relationship in which a 501(c)(3) non-profit organization (A&BC) offers its legal and tax-exempt status to another organization (you) engaged in activities related to A&BC’s mission. This relationship enables us to extend certain benefits of being tax-exempt to you without you having to file for nonprofit status yourself

Your mission for the project must align with the mission of the Arts & Business Council.

In fiscal sponsorship your project does not automatically gain tax-exempt status. We receive charitable donations and grants as our assets. We then re-grant these funds to your project, which is a separate legal entity. We will maintain discretion and control over the funds to ensure they are used for charitable purposes aligned with our mission. While fiscal sponsorship allows your project to benefit from our tax-exempt status for receiving donations, your project does not gain independent tax-exempt status unless you seek and obtain your own 501(c)(3) designation. We will have to ensure compliance with IRS regulations to avoid being seen as a mere conduit for passing funds directly to your project without oversight.

Model C, which is the model of fiscal sponsorship A&BC provides (also known as a pre-approved grant relationship), is a type of fiscal sponsorship where you are a separate legal entity from A&BC. A&BC receives charitable donations and grants on your behalf and then grants the funds to you to support your activities.

For more information about the models of fiscal sponsorship see the links below:

https://www.missionedge.org/news-and-resources/fiscal-sponsorship-model-a-vs-model-c

https://getribbon.org/fiscal-sponsorship-models/

Model A is another common model of fiscal sponsorship. A distinguishing feature of this model is that you would be part of program activities. This may include program managers becoming employees of their fiscal sponsor.

This means there is a higher cost to the program due to including employment benefits. Model C still involves a grantor-grantee relationship. This means you have more financial independence but still benefit from our tax-exempt status and ability to receive charitable donations.

With fiscal sponsorship you can:

  • Solicit funds that are eligible for tax deduction to donors
  • Accept automatic recurring monthly donations
  • Receive contributed funds via electronic funds
  • Accept credit card donations (credit card fees will likely still apply)
  • Run a crowdfunding campaign
  • Apply for grants and corporate sponsorships
  • Ask for guidance from A&BC staff

Fiscal sponsorship allows you to use the tools A&BC offers to support your work. There’s no “one-size-fits-all” solution and you are the expert on what you’re creating. You can use these tools to customize the support you need.

Fiscal sponsorship is ideal if you have sufficient operational capacity to handle administrative functions and are seeking financial support to grow your impact. It’s also suitable if you want to establish or expand your charitable arm and mission-driven programming without creating a new nonprofit.

A&BC’s Policies

Some activities are prohibited for you. These include:

  • Fundraising through Facebook
  • Online auctions
  • Registering for products or services that require A&BC’s name
  • Using A&BC’s EIN without knowledge or permission
  • Use of Google Nonprofits
  • Selling advertising through a fiscally sponsored fund
  • Utilizing outside fundraising and payment processing platforms without approval
  • Conducting a raffle through a fiscal sponsorship fund
  • Hiring a commission-based professional fundraiser to raise charitable donations
  • Collecting credit card information from donors
  • Using our sales tax exempt certificate without permission
  • Processing or accepting ineligible noncash donations
  • Using grant money from a fund to another entity
  • Using nonprofit bulk mailing rates

Please read the program guidelines to see if you are a good fit for this program. Then fill out the Fiscal Sponsorship Application and submit it to the Arts and Business Council of Greater Boston either by mail or email at [email protected].

Any organization or individual with a project that aligns with A&BC’s mission may apply for fiscal sponsorship. Our main focus areas include:

  • Our tenants at our Creative Campus Properties
  • Projects run by our Walter Feldman and Creative Entrepreneurship fellows 
  • Social practice projects (projects focusing on diversity, inclusion, accessibility, and justice or DEIAJ)
  • Public art and/or art in public spaces
  • Projects run or referred by our program partners or funders

Please note: the mission of your organization does not need to be in alignment with our mission and/or main focus areas, as long as the project requiring fiscal sponsorship is in alignment with these values.

Yes, under Model C sponsorship legal entities such as corporations or LLCs can enter into a grantor-grantee relationship.

No, individuals can be fiscally sponsored.

Fees

The Arts & Business Council charges a 7.5% administrative fee on all donations. This fee covers all costs associated with administering your fiscal sponsorship – including website maintenance, bookkeeping costs, staff time, and bank fees. The fee also potentially represents a discount for individuals and smaller arts organizations that do not have bookkeeping support, staff, boards, and other resources related to the maintenance of a non-profit tax-exempt corporation.

It is common for all organizations that run Model C fiscal sponsor programs to charge a fee. These fees can range from 0-10%. 

There are no additional fees from A&BC for processing credit cards. Processing fees apply from credit card companies if donations are made through our website. Our website will also allow the donor to cover the cost of the processing fee.

Benefits and Services

Benefits include:

  • Access to grant and charitable funds
  • Reduced administrative burden
  • Compliance with tax laws
  • Potentially added credibility with funders and individual donors
  • Allows organizations with limited resources to focus on their mission and programs

A&BC offers services such as receiving and managing donations and grants. A&BC can also help with ensuring compliance with tax regulations by sending out 1099s to vendors and thank you letters for donations over $250. We also provide strategic financial oversight. You are responsible for managing the program for which you are seeking funds. You are also responsible for administrative tasks like program staffing, grant writing, and operations activities.

Being fiscally sponsored by a reputable organization can potentially enhance your credibility and attract more donors and grants.

Transition and Future Planning

Yes, many projects use fiscal sponsorship as a temporary measure while they build the capacity to operate independently. One of the advantages of fiscal sponsorship is the flexibility it offers. A&BC can support you through the transition process if you grow and decide to establish an independent 501(c)(3). We offer this service through our Volunteer Lawyers for the Arts (VLA) Program. Apply for their services here: https://artsandbusinesscouncil.org/application-for-legal-services/

More information about VLA: https://artsandbusinesscouncil.org/vla/

Administrative Support

A&BC provides a framework for receiving and managing donations. Active fundraising efforts are your responsibility. A&BC can offer guidance and resources to support fundraising initiatives.

Financial and Legal Considerations

A&BC receives funds on your behalf and pays your pre-approved vendor bills for your project. You are responsible for the delivery of the programs related to your donations and grants.

You must:

  • Adhere to all applicable laws and regulations related to your programs
  • Maintain proper program budgets
  • Ensure funds are used for the stated charitable purpose
  • Maintain donor relations and information

A&BC’s Responsibilities

No, A&BC does not impose artistic judgment on you or your projects.

However, we maintain the sole right to terminate the fiscal sponsorship agreement relationship at any time and for any reason.

You retain all rights and titles to your works.

Any income derived from your works is solely your property.

Contributed income is income that is traditionally earned through donations or grants.

Earned income is money received for providing a good or service. For example, event ticket sales are considered earned income.

No, traditionally a project will not use fiscal sponsorship to maintain earned revenue as it is subject to an administrative fee. However, some projects will choose to use fiscal sponsorship for their earned revenue for more simplified finances or if the amount is a small amount of the total project budget.

Application & Budget

You do not have to  fill out the budget in accordance with how A&BC provides it on the worksheet. The budget is meant to be an aid to organizations/individuals who are formatting budgets; if you or your organization already have an established budget, you are encouraged to submit that instead.  

No