Fiscal Sponsor FAQ’s
1. What is a Fiscal Sponsor?
A “fiscal sponsor” is a tax-exempt corporation that agrees to receive and disburse funds for your project, enabling non-commercial projects to apply for funding from organizations that require non-profit status (e.g. grants). Although some foundations and other funding agencies give money to individuals, many funders state that they will only fund projects that are administered by non-profit corporations and that are exempt from federal taxes under Internal Revenue Code Section 501(c)(3).
2. What does 501(c)(3) status mean?
501(c)(3) status is the federal tax designation given to a non-profit, charitable organization by the Internal Revenue Service for the purpose of determining which charitable contributions are tax-deductible. Additionally, most donors prefer to give to corporations that have been granted tax-exempt status under Internal Revenue Code Section 501(c)(3), because it affords them charitable deduction for their gifts on their federal income taxes. Such tax-deductible, benefits can serve as a major incentive for donors considering making a contribution to worthwhile projects.
3. Does the St. Croix Foundation apply for grants, fundraise, or research for my project?
As your sponsor, the Foundation acts as a non-profit, tax-exempt umbrella that accepts and administers contributions made to your project(s). The Foundation is legally responsible for the funds received on behalf of fiscally sponsored project and must ensure that the funds are used for charitable activities, as agreed upon between the donor and recipient, and that the donor reporting requirements are met in a timely fashion. However, the Foundation does not act as a fundraiser or researcher in regards to thecontent or actual implementation of your project(s).
4. Am I or my organization eligible for fiscal sponsorship from the St. Croix Foundation?
Projects are accepted into the Fiscal Sponsorship Program only after passing through a thorough review process. In order to be eligible, you must meet the following requirements:
- Your project must be a non-commercial, community-oriented effort, which is closely aligned with the vision and mission
of the St. Croix Foundation. - Your project/organization name must be registered with the Lieutenant Governor’s Office.
- The focus area of the project must take place in and benefit the Territory of the United States Virgin Islands.
- The Project Director or Director of the Organization must be a U.S. citizen, have a Social Security Number or a Federal ID Number, and must not have been convicted of a felony.
5. When can I apply for Fiscal Sponsorship?
You can apply for sponsorship at anytime after an initial interview, during which you’ll be asked to provide a verbal project summary and identify funding sources. Applications are reviewed on a rolling basis.
6. How long does the application process take?
Once the St. Croix Foundation has received your completed application, it takes approximately two to four weeks for the review process. To expedite the review process, remember that your application should:
- Provide a well-written proposal that outlines your project, who or what is involved in its production, what charitable/community need it addresses, and how long you expect it to take.
- Provide a detailed budget outlining all costs associated with your project.
- Submit a timeline that covers the entire project plan.
- Include resumes of people who are working on the project; reviewers want to see what you have been working on, where you come from, and what experiences those involved in the project have.
Disclaimer: St. Croix Foundation reserves the right to deny a project, or individual of a project, fiscal sponsorship services in the event that said projects and/or individuals promote sex, violence and/or profanity in a manner that is not (1) educational AND (2) not harmonious with our mission and vision.
