This book is concerned with how to maximize the philanthropic community's ability to support important activities from arts to international aid, from environmental activism to individual health needs, and a host of other human services. In the last 10 years, public charities, community foundations and private foundations have become increasingly worried about the future of a funding practice widely (and unfortunately) known as fiscal agency.

That practice has been criticized in recent articles, so much so that some organizations have considered abandoning the practice. Most have continued it, however, for the compelling reason that the charitable sector would be crippled without a way to harness the creativity and respond to the needs of a vast array of groups and individuals that lack the tax status required to receive grants from many private foundations, government agencies and other funders.

The purpose of this book is to take a positive approach to the problem. It describes, in general terms, six different models (plus a seventh, experimental model) by which a public charity, tax exempt under Section 501(c)(3) of the Internal Revenue Code, can conduct a program of support to individuals and to nonexempt organizations that is legal and proper.

As the models demonstrate, fiscal sponsorship advantages are not limited to situations where the projects lacks, or never will have, 501(c)(3) status. Fiscal sponsorship is often temporary, used for that period before a new organization obtains its own tax exemption. Other variations occur when a small 501(c)(3) group needs a larger 501(c)(3) organization to manage its financial affairs or seeks IRS classification as a public charity based on its relationship with the sponsor.

These models are not etched in stone. Consider them simply devices for understanding the possibilities. Each model is really a paradigm with certain unique characteristics. In practice, they may be used in combinations, blended, subdivided, and they may serve as springboards for developing new models. To provide concrete examples of how a proper fiscal sponsorship program can be constructed, we start with three hypothetical situations. (p. 2, 4).

CONTENTS
Acknowledgments.
Foreword.
Introduction.
Not fiscal agency.

Hypothetical situations.
     #1 The artists.
     #2 The human services project.
     #3 The environmental group.

The models.
     Summary.
     Chart of the models.
     Model A - Direct project.
     Model B - Independent contractor project.
     Model C - Preapproved grant relationship.
     Model D - Group Exemption.
     Model E - Supporting organization.
     Model F - Technical assistance.
     Postscript - Criticism and commentary.

Appendix.
     Fiscal sponsorship grant agreement for Model C.
     IRS revenue ruling 66-79 (1966 -l C. B. 48) Commentary on taxability of grants.
     Qualifications for public charity status IRC Section 509(A)(3) supporting  
     organization.
     Model X - Payments for the use of sponsor.

This book is concerned with how to maximize the philanthropic community's ability to support important activities from arts to international aid, from environmental activism to individual health needs, and a host of other human services. In the last 10 years, public charities, community foundations and private foundations have become increasingly worried about the future of a funding practice widely (and unfortunately) known as fiscal agency.