I am pleased to have this guest post by former ballerina and journalist Stephanie Wolf as she explores how arts organizations can use Fiscal Sponsorship as a means to fund their programs and offer tax deductions to their donors.
But First a Little Background…
Most arts organizations choose the nonprofit route to set up their organization and many apply for nonprofit status as a way to allow donors to receive tax deductions. For a new arts organization, the process of allowing tax federal income tax deductions for their donors or as it’s more commonly known 501(c)(3) status can be an expensive proposition in terms of time and money. And to compound matters further most foundations or other organizations who fund the arts through grants require at least a three year track record as a 501(c)(3) organization.
Luckily for the new arts organization there is a concept called Fiscal Sponsorship that can help them access grants and provide tax deductions for their donors. In the linked article, former ballerina and journalist Stephanie Wolf describes the fiscal sponsorship process and provides information on one organization that provides a fiscal sponsorship service – Springboard for the Arts.
According to Stephanie, “To go for a nonprofit status or not, this seems to be the question on many artists’ minds in the fetal stages of professional development. While advantages like eligibility for grants and the ability to accept tax-deductible donations appeals to professional artists, the process of gaining a 501(c)3 status can be daunting. But a fiscal sponsorship can help ease some of the stresses involved in the process, affording artists the time and energy to focus on their art.”
Read the rest of Stephanie Wolf’s article – Fiscal Sponsorship for the Arts
Neil McKenzie is the author of The Artist’s Business and Marketing ToolBox – How to Start, Run and Market a Successful Arts or Creative Business available in softcover from Barnes & Noble and Amazon and as an eBook from iTunes, Amazon and Barnes & Noble. He has developed and teaches the course “Artrepreneurship” at the Center for Innovation at Metropolitan State University of Denver, and is also a visiting professor at University College at the University of Denver.
Neil has over 30 years’ experience as a management consultant and marketing executive, working with some of the world’s top brands. Neil is a frequent lecturer to artists and arts organizations, a guest columnist for Colorado Biz Magazine, where he covers the creative sector of the economy, and the author of several articles for Americans for the Arts, a national arts organization. Follow Neil on Twitter: @neilmckenzphoto