What is Fiscal Sponsorship2020-08-11T16:22:48-07:00
WHAT IS FISCAL SPONSORSHIP?
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Fiscal sponsorship is a contractual relationship between a 501(c)(3) nonprofit organization and a group or individual whose activities fall within the sponsoring organization’s mission. This relationship enables the 501(c)(3) to extend certain benefits of being nonprofit to the sponsored group, without the group having to go through filing for nonprofit status by itself.

Fiscal sponsorship enables mission aligned groups to share resources, which keeps administrative expenses low and in proportion to the size of each organization.

In other words: Shunpike does the back office work, so groups can spend more time (and money) on their artistic mission.

Are all fiscal sponsorships the same?

Shunpike offers artists three types of Fiscal Sponsorship; Basic, Comprehensive, and Complete. See how they compare:

Basic

Management of tax receipts for donations, facilitate grant eligibility and funding, provide online and event fundraising platforms.

Good For:
Groups with fewer small projects. Established groups comfortable with their own financial management.

Fees:
$100 annual fee + 7% of contributed income to Shunpike

Comprehensive

Management of tax receipts for donations, fundraising eligibility and support, provide online and event fundraising platforms, full-cycle bookkeeping, tax assistance, full administrative and consulting service.

Good For:
Groups with a multitude of projects. Groups looking for administrative and financial services.

Fees:
$150 annual fee + 10% of all revenue to Shunpike

Complete

Comprehensive Services + payroll and HR services, access to health benefits for FTEs.

Good For:
Groups with a multitude of projects. Groups looking for administrative and financial services. Groups with year-round activity, wanting FT employee(s).

Fees:
$200 annual fee + 12% of all revenue to Shunpike

Services Provided Basic Comprehensive Complete
Secure online donations page
Donation processing
Donor tax receipts issued
Monthly contributed P&L reports issued
Basic grants administration & record keeping
Special event compliance review
Review of fundraising materials/online campaigns
Access to online templates and resource library
Detailed assessment of grant applications
Full-cycle bookkeeping (cash basis only)
Detailed monthly transaction reports
Sales and use tax records filing
Annual IRS filing and distribution of 1099-MISC as required
Annual and/or quarterly business filings
Maintain and administer city business license
Maintain WA state non-profit incorporation status
Non-legal review of contracts and agreements
Research and coordinate insurance coverage
Run state background checks for volunteers & personnel
Provide WA State charitable organization status
Provide payroll and HR service
Provide access to health benefits for FTE’s
Are we eligible for fiscal sponsorship?2019-11-14T12:25:23-08:00

Through our Basic Fiscal Sponsorship Service, Shunpike fiscally sponsors arts groups and projects working in all artistic disciplines that:

  • Are aligned with Shunpike’s mission
  • Are based in Washington State (or the artistic process and outcome is in Washington State)
  • Have a clear public benefit and public outcome*
  • Assume a non-profit business model**
  • Budget for a minimum in contributed income
    • Basic Sponsorship Income Minimum — $1,500
    • Comprehensive Sponsorship Income Minimum — $3,500
    • Complete Sponsorship Income Minimum — $25,000

* Because donations to fiscally sponsored groups and projects are tax-deductible, groups and projects must add value to the public or community in some way that doesn’t just benefit you as an artist or your group. Public benefit is broadly defined and public outcomes can include performances, exhibitions, workshops, screenings, artist talks, festivals, behind-the-scenes tours, open rehearsals, or any other public offering.

**Where all other eligibility criteria are met, Shunpike can sponsor specific programs or projects of an LLC’s work, as long as they are clearly non-profit in purpose and distinct from the organization’s other for-profit activities

What does fiscal sponsorship cost?2019-11-05T11:48:31-08:00

Shunpike offers fiscal sponsorship to independent arts groups because it is a fundamental part of our non-profit mission. The fees we charge do not cover the full cost of the program and, in support of the artists we serve, we endeavor to keep all fees to a minimum. Following is a list of all fees and charges applicable to Shunpike’s fiscal sponsorship programs:

Application Fee: All applications to Shunpike’s Fiscal Sponsorship Program incur a $25† non-refundable Application Fee, payable at the time of application.

Establishment Fee: Once your group or organization is accepted into a Fiscal Sponsorship Program, you pay an Establishment Fee depending on which program you have applied to and been accepted into

  • Basic Fiscal Sponsorship — $100†
  • Comprehensive Fiscal Sponsorship — $150†
  • Complete Fiscal Sponsorship — $200†

Business License Fee: All groups sponsored through Shunpike’s Fiscal Sponsorship Programs must secure a business license from the City government in which they are primarily based. The cost of this license varies for each city. For groups sponsored through the Comprehensive or Complete Fiscal Sponsorship Programs, Shunpike is able to administer the business license application and annual renewal process as long as the required funds to cover this cost are received up-front.

Close Out Fee: – If/When your group decides to close out your contract with Shunpike, you pay a fee depending on which level of service you were accepted into.

  • Basic Fiscal Sponsorship — $25†
  • Comprehensive Fiscal Sponsorship — $50†
  • Complete Fiscal Sponsorship — $100†

† Payments can be made via cash, check, or credit card (A 2.5% fee will be applied to credit card transactions)

What are the ongoing service fees?2019-11-05T11:50:58-08:00

Service Fee: Once we get you up and running, groups will pay a Service Fee on all contributions and grants received by Shunpike.

  • Basic Sponsorship — 7% on all contributed income
  • Comprehensive Sponsorship — 10% on all income
  • Complete Sponsorship — 12% on all income, plus personnel costs

Maintenance Fee: To maintain your account after the first year of sponsorship, groups will pay an annual Maintenance Fee. Maintenance Fees are charged annually on the anniversary of your fiscal sponsorship agreement with Shunpike.

  • Basic Sponsorship — $100†
  • Comprehensive Sponsorship — $150†
  • Complete Sponsorship — $200†

Merchant Fees: All merchant fees directly attributable to income received on behalf of your fiscally sponsored group or project will be passed on to you.  Merchant fees vary depending on provider, and while Shunpike endeavors to negotiate the best rates possible for its partnering arts groups, the setting of merchant fees is up to each provider.

† Payments can be made via cash, check, or credit card (A 2.5% fee will be applied to credit card transactions)
How long does fiscal sponsorship last?2019-10-11T16:24:12-07:00

Unless you tell us otherwise, your fiscal sponsorship account with Shunpike will remain active as long as you:

  • Are actively engaged in producing and presenting artistic activity that has a public outcome
  • Are actively fundraising
  • Pay your annual Maintenance Fee (see Fees and Charges above)
  • Submit required renewal paperwork annually

If you stop any of the above for a period of 12 months, your fiscal sponsorship account with Shunpike will be closed and any applicable Close-Out Fees will apply (see Fees and Charges above). On the anniversary of your contract renewal date, you will be asked to provide Shunpike with up-to-date information on your group, its artistic activities, and financial plans. This information helps us to assess the ongoing viability of your group and make any recommendations to assist your group in its ongoing development. Groups not providing this information by the date specified by Shunpike will not have their fiscal sponsorship account renewed and Shunpike can no longer accept contributions on their behalf.

How do we apply?2019-08-18T13:14:10-07:00

If you think your arts group or project would benefit from Shunpike’s fiscal sponsorship services, please contact us to discuss your eligibility. If eligible, fill in a Fiscal Sponsorship Application Form and submit it to Shunpike by the required deadline (see details on application, agreement and renewal deadlines below). The application asks for information on your project or group’s proposed artistic activities, along with your financial and fundraising goals. For application questions, please contact us at programs@shunpike.org.

When can we apply and how long will it take to find if we have been accepted?2019-08-18T13:13:00-07:00

Shunpike accepts applications to its fiscal sponsorship program four times a year on the first day of March, June, September, and December (or the first business day thereafter if any of these dates fall on a weekend). Applications must be submitted by midnight (Pacific Standard Time), using our online application. Generally, you hear about the status of your application by the end of the month in which you apply.

What happens if we are accepted?2019-08-18T13:16:23-07:00

If your application is successful, you will be sent an agreement that must be signed no later than one month after the day it was sent to you by Shunpike. If we do not receive your signed agreement within one month, we cannot move ahead with fiscal sponsorship of your group or project.

What are Shunpike’s application, agreement, and renewal timelines?2019-10-11T16:25:46-07:00

Successful applicants who apply on March 1 will generally be contracted by the end of April and required to pay their annual Maintenance Fee by April 30 of the following year.

Successful applicants who apply on June 1 will generally be contracted by the end of July and required to pay their annual Maintenance Fee by July 31 of the following year.

Successful applicants who apply on September 1 will generally be contracted by the end of October and required to pay their annual Maintenance Fee by October 31 of the following year.

Successful applicants who apply on December 1 will generally be contracted by the end of January and required to pay their annual Maintenance Fee by January 31 of the following year.

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