Open Minds, Inc. Fiscal Sponsorship is a fundraising tool that provides an alternative to establishing your own 501 (c)(3) nonprofit corporation in order to access funding for your organization. Various grant-making organizations that require nonprofit status from its applicants and this is what OM provides. OM is acting as the grassroots organization fiscal sponsor administers and accounts for funding on behalf of the project.
The fiscal sponsor is legally responsible for the funds received on behalf of sponsored projects. It must ensure that the funds are used for the activities/work agreed upon by the donor and the recipient, and that the donor reporting requirements are met in a timely fashion.
While fiscal sponsorship can save you from the long and arduous process of becoming a 501 (c)(3) nonprofit tax-exempt organization and broadens your funding options, it is important to note that fiscal sponsors do not provide funding themselves, and do not research and apply for grants on behalf of a project. Open Minds will however help with steps to apply for your 501c3 with the IRS and promote your fundraising campaign.
You apply for fiscal sponsorship, and Open Minds staff and board review your mission statement, budget, project narrative; if you are accepted, we will sign an agreement and Open Minds, Inc. will provide you with a letter of support and all the relevant financial documents you will need for grant applications. Once your project has been awarded a grant or receives a contribution, the funds are distributed and mailed to Open Minds, Inc. We then deposit the funds in our tax-exempt bank account. Within the next 15 days, a check is written to the organization to fund general operating costs.
Open Minds, Inc. will report to the Internal Revenue Service all funds granted to the organization, and it is the organizations responsibility to pay any taxes due on the funds.
In order to be eligible to apply to Open Minds, Inc.s Fiscal Sponsorship Program, you must meet the following criteria:
NO FEES UNTIL FEBRUARY 2021
At the point of application, there is NO fee. Upon receipt of grant or donation funds, OM will NOT charge a service commission of 5% of all funds made payable to “Open Minds.”