Project Create

the biography of a nonprofit

Archive for the tag “fiscal sponsorship”

Project Create Is In A $500 Grant Challenge – Vote For Us!!!

Project Create has come quite a far way from being just an idea. We have accumulated over 300 followers, racked up over 3000 views, and held a contest for what can only be described as the Best Logo Ever. But Project Create needs to start doing something very, very, very important: RAISE MONEY!!!

Unfortunately, we are not yet accepting donations because we have not achieved our 501(c)(3) status, and donations would not yet be tax deductible (refer to my previous post on how to become a nonprofit). I will say that we have been in deep discussion with an amazing nonprofit that might take us on as a fiscal sponsor (I even flew down to New Orleans and met with their Board of Directors!), and hopefully achieving 501(c)(3) status will just be around the corner.

Until that time, we are doing everything we can to get our name out there and find other fundraising opportunities. One of those opportunities is the GOODMaker Art Everyday Grant. GOOD is offering a $500 grant to an individual or organization with an innovative plan for bringing the visual arts to their community.

I think we can all safely agree that Project Create falls into that category.  And so, Project Create is one of the many amazing ideas to be listed in the GOODMaker Challenge, but GOOD will only award the $500 (and all of the glory) to the one idea with the greatest amount of votes.

So now it is up to YOU to help us win the award!!! What can you do, you ask?

  1. First, you can click here to go to our contest page and vote for us! Leave lots of comments too. People like to see comments.
  2. Second, you can spread the word BIG TIME to all of your friends and family (Facebook, Twitter, Email, ANYTHING HELPS!). Share our link: http://arteveryday.maker.good.is/projects/projectcreatenola.
  3. Make some art (true this won’t help us win the contest, but it will help you be AWESOME).

Voting is open from March 22 – 30. Please vote for us! This money, and the recognition, will go a long way in allowing us to opening our doors. Think of the children!

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Fiscal Sponsorship

In my last post, I discussed some the steps Project Create is taking to become a legally recognized nonprofit organization. While this is one way to achieve nonprofit status, I want to discuss a very useful, alternative approach called a fiscal sponsorship

Instead of rewording a perfectly good explanation, here is an excerpt from Grantspace.org:

Fiscal sponsorship is a formal arrangement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. This alternative to starting your own nonprofit allows you to seek grants and solicit tax-deductible donations under your sponsor’s exempt status

An important requirement is that the sponsored group’s activities must be in line with the sponsor’s mission because they are considered one legal entity. This means that if a charity’s mission is to provide food to the homeless, then an art based nonprofit (i.e. Project Create) most likely cannot use them as a fiscal sponsor.

The major benefit is that the sponsored group gains 501(c)(3) status faster than applying with the IRS, meaning it can begin operations that much sooner. The new program is subject to the bylaws and rules governing the sponsor, and in some agreements, the sponsor provides administrative oversight. In return, the sponsor receives a percentage of the donations and grants received in the sponsored group’s name.

Another plus is that a fiscal sponsorship can be temporary, allowing the sponsored group to apply for independent 501(c)(3) status and break away from the sponsor. This brings us back to Project Create’s journey. I fully intend to form an independent nonprofit, but I don’t want our mission to sit on the backburner while the IRS approves our application. Therefore, while we complete our filings, Project Create will also seek a fiscal sponsorship.

Finding a fiscal sponsor, however, does require some research. There are organizations such as the Fiscal Sponsor Directory that can help connect you with potential sponsors, but keep in mind that many people are applying for limited sponsorships. Another more obvious option is to research on your own and approach existing charities with similar missions.

After thoroughly researching the nonprofit field in New Orleans, I found a potential sponsor that was interested in sponsoring Project Create. We are negotiating with an education based nonprofit focused on afterschool and summer programs. We can use this group as a sponsor because our mission to increase art education and provide free resources to students is perfectly in line to accomodate its afterschool programs.

As soon as we sign our contract, I will provide more information on our sponsor.

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