Q. What is fiscal sponsorship, and why is it necessary?
A. Fiscal sponsorship gives an artist or organization an affiliation with a tax-exempt 501(c)(3) organization, enabling them to gain access to funding opportunities and other resources that are only available to 501(c)(3) organizations. It is used by the non-profit sector as a way to meet the needs of individual artists and emerging organizations that are doing noncommercial work but don’t have the legal status of non-profit organization. Most foundations or corporate funders restrict grants to 501(c)(3) tax-exempt organizations, and individual donors will often only make a charitable contribution if it is tax-deductible.

Q. What does 501(c)(3) mean?
A. 501(c)(3) is the federal tax determination given to a non-profit charitable organization.
 

Q. Does BAVC charge a fee for this service?
A. Yes. BAVC charges an administrative fee of 7% on all funds received on behalf of a sponsored project. Additionally, all sponsorees must maintain current BAVC memberships. 

Q. How quickly does BAVC process incoming donations?
A. Turnaround time is usually about two weeks from the date BAVC receives payment.

Q. Does BAVC's Fiscal Sponsorship program provide direct funding?
A. No. The Fiscal Sponsorship program is not a grant-making program. However, fiscal sponsorship will allow you to apply to funders who typically only make grants to projects with a non-profit status.

Q. Does my project have to take place in the San Francisco Bay Area to be eligible for fiscal sponsorship?
A. No.
 

Q. Who is eligible for fiscal sponsorship?
 A.  Public media projects that are connected to existing BAVC program initiatives, by invitation only.

Q. Why does the Fiscal Sponsorship program have an application process?
A. Even though the Fiscal Sponsorship program at BAVC is limited to select invited projects, we must insure that sponsored project activities are conducted according to IRS regulations. For the Fiscal Sponsorship program to comply with these regulations, BAVC must establish discretion and control over the project. BAVC must carefully assess and approve the application and project budget, and ensure that the project is in accordance with internal policies and procedures for contributions to sponsored projects. In addition, a sponsorship contract governs the relationship between BAVC and the sponsored project in order to meet the needs of all the parties involved.

Q. Why does BAVC need to establish discretion and control over a sponsored project?
A. BAVC is legally responsible for the funds received on behalf of a sponsored project and must insure that the project uses the funds for charitable activities and that donor reporting requirements are met by the project.

Q. What should I do if I need documents or assistance from BAVC in order to apply for a grant?
A. Many commonly requested grant documents can be found on our For Current Fiscal Sponsorees page. If you do not find what you need there, contact us. Please plan accordingly in order to give us at least one week to respond to your request. 

Q. Does the project retain its own legal identity if it has a fiscal sponsor?
A. Every fiscal sponsorship program is a little different. Projects that are fiscally sponsored by BAVC are considered independent contractors, and they retain their own identity, creative control and ownership. However, the project is also responsible for tax reporting and all liability issues.

Q. Do I have to pay taxes on funds received through BAVC’s Fiscal Sponsorship Program?
A. Yes. Funds raised through a fiscal sponsor are considered income to the IRS and are potentially subject to taxes. BAVC sends 1099's to all unincorporated project directors at the end of each fiscal year for their tax reporting purposes. Incorporated projects do not receive a 1099 but are responsible for reporting charitable funding to the IRS.

Q. How do you get invited to apply for BAVC sponsorship?
A. Projects are reviewed by BAVC staff and Board three times a year, in March, September, and December. These projects will be invited from ongoing BAVC initiatives including Creative Programming (Producers Institute, Nonprofit Institute, Mediamaker, and other Frameworks programs), Next Generation Programs, TIMA (Technology, Innovation and Media Arts), Preservation, or Training and Resources.