Suggestions on things to look out for in selecting a fiscal sponsor

Many documentary filmmakers seek fiscal sponsorship in order to collect grant funding that are exclusively provided to charities and accept contributions from people who desire a tax benefit. How do you choose the best fiscal sponsor? So much attention has been placed on what fiscal sponsorship for filmmakers are looking for in fiscal sponsorees, but fiscal sponsorees should also consider all of their alternatives in order to locate a fiscal sponsor who is a suitable fit for their project. Too many filmmakers focus just on whatever fiscal sponsor charges the lowest administrative price, and not on all of the other elements that might make or break a successful fiscal sponsorship relationship.

Meanwhile, here are some suggestions on things to look for when selecting a fiscal sponsor:

1.    Does the Fiscal Sponsor fund initiatives similar to yours?

It may seem like a simple statement, but you'd be amazed how few filmmakers do their homework. Eligibility information is available for the majority of structured fiscal sponsorship schemes. Women Make Movies, for example, is fairly specific: your project must be a non-commercial film, video, or multimedia production; you must be a United States citizen; and the project director must be a woman. Some fiscal sponsors may have geographical or membership restrictions. Make sure it's a good fit by doing your research.

2.   Do they give detailed recommendations and sample contracts?

A film fiscal sponsorship relationship is a legally binding agreement. Although the phrase "pass-through" is frequently used, any organization that does nothing more than allow money to flow through its name is not doing its stakeholders or the unique tax status it has been granted as a nonprofit organization justice. Nonprofits should maintain a level of openness, and any Fiscal Sponsor should be ready to give clear written rules with possible Fiscal Sponsorees on what is required in applying for Fiscal Sponsorship and what is expected of both sides. Enter with both eyes wide open.

3.   How long have they been in business?

To select a strong film fiscal sponsorship, you should learn as much about them as they do about you and your project. How many movies have they backed? What happened to these movies? Do they have a positive reputation in the film industry? What have you heard about how they handle disbursement of monies, communication with fiscal sponsorees, and being a known organization to funders? These questions have no correct answers.

4.   Do they provide services or other technical support?

This isn't required for every project. Some filmmakers may simply desire or require a non-profit organization to manage funding for their work. However, a number of fiscal sponsors provide additional benefits. Fiscal Sponsors that require you to become a member of their organization sometimes offer a variety of additional programs to which you will receive access at a reduced charge, such as publications and professional development activities. Some may take on fiscal sponsors as mentors or advisers to their sponsored ventures. Others, on the other hand, may play a second duty as a distributor, which some filmmakers may find useful. Alternatively, they may provide additional services such as access to group-rate insurance, video or editing equipment, rental office space, accounting services, or screening space.

5.   What information do they want for the application?

You wouldn't send a generic CV for a job you truly desired, would you? As a result, be certain that you understand exactly what the fiscal sponsor requires for the application and why. Remember, the fiscal sponsor is essentially representing your project as a sub-grantor for any money you raise, so there's a good reason they want to know you've thought about fundraising. It is not intended to make you do extra work. It's actually to ensure that you're getting the most out of your fiscal sponsorship agreement.

6.   How long does it take to obtain fiscal sponsorship?

Yes, we are aware of your predicament. You are a one-man or one-woman band that has been attempting to combine your labor of love film with other sources of revenue and have only now learned that an essential funding application deadline is approaching next week, therefore you need to locate a fiscal sponsor FAST! While some fiscal sponsors may be able to expedite the screening process, most professional fiscal sponsors have an application procedure and want to ensure that they have had sufficient time to evaluate a fiscal sponsorship application. Before you apply, do your homework.

7.   Is there an escape?

What if you wish to part ways with a fiscal sponsor? A geographic or thematic criterion for a grant may necessitate the involvement of another sponsor. You might be avoiding the project for a variety of reasons. Alternatively, there may be something else going on that isn't conducive to a solid relationship with your fiscal sponsor (in spite of your thorough research). You should be aware of the procedure for cancelling the fiscal sponsorship arrangement. Before you say "yes," make sure you know how to say "no more."