Fiscal Sponsorship FAQ

501(c)(3) is the tax determination given to a non-profit charitable organization at the federal level. It allows donors to receive a tax deduction for supporting a public charity.

No. Projects are responsible for managing the day-to-day operations of their project and are responsible for fundraising to sustain their work.

NYFA Fiscal Sponsorship is evaluating the best ways to serve our community. We are temporarily accepting new projects on a limited basis. Please email [email protected] with a short description of your project and need for fiscal sponsorship.

Artist Projects are specific projects (as opposed to your entire practice) done by individual artists or unincorporated artist collectives. NYFA Fiscal Sponsorship can contract with individuals or artists who have an LLC or corporation. We only accept contributed income for Artist Projects. 

Emerging Organizations must be incorporated as a nonprofit on the state level. They may also be their own 501(c)(3). We accept both earned and contributed income for Emerging Organizations.

No. NYFA Fiscal Sponsorship is an international program, but you do need a U.S. taxpayer identification number.

For an Artist Project, as long as you are actively fundraising for—and working on—the project, you may remain fiscally sponsored until the project is complete. Emerging Organizations are fiscally sponsored on an ongoing basis. Artist Projects and Emerging Organization both need to complete annual renewal fee payment and reporting requirements. 

Fiscally sponsored projects must benefit the public in some way. That could include a subject screening, exhibition, performance or talk, exploring an issue, or otherwise offering an opportunity for an underrepresented group of people. Because donations to fiscally sponsored projects are tax-deductible, projects must add value to the public sphere and not only benefit the artist’s private gain.

Artist Projects pay a one-time contract fee of $100 and an annual contract renewal fee of $65 for the duration of the project.

Emerging Organizations pay a one-time contract fee of $100 and an Annual contract renewal fee of $115 for the duration of the partnership. There will also be a quarterly account maintenance fee of $45.

All fiscally sponsored projects will pay an administrative fee for all contributed funds raised with NYFA. The percentage is based on funds raised:

8% for $0 – $500,000  
6% for $501,000 – $2,000,000  
4% for $2,000,001 and greater 

Fiscal Sponsorship staff provides pre-application phone reviews for $50 an hour. Please contact the Fiscal Sponsorship Program Officers at [email protected] for more information. We do not provide copies of past applications, because every project is unique.

No. NYFA is an exclusive fiscal sponsor. We make exceptions on a case-by-case basis if NYFA Fiscal Sponsorship does not meet the requirements for a specific grant.

Yes. However, you need to apply separately for each project. Also, you cannot move money between different fiscally sponsored projects.

Yes, you can take a fee for being the project director and for being an artist on the project. Typically, project directors don’t pay themselves more than 20% of the budget; however, the artist fee varies depending on the type of project.

There is no limit to projects we accept. Each project is evaluated based on its feasibility and public benefit. Successful applications are thorough, professional, and demonstrate the potential of being completed successfully. Remember that projects cannot be used towards an undergraduate or graduate degree, and cannot be for-profit.

Yes. NYFA Fiscal Sponsorship can make international wire transfers for a $50 fee and accept incoming international wires. You can also live abroad, as long as you have a U.S. Taxpayer ID Number.

No. Projects that are fiscally sponsored by NYFA are considered independent contractors and retain their own identity. Project directors retain creative control and ownership of their project/organization.

No.

No. As per IRS regulations, only tangible goods are considered tax-deductible for in-kind purposes. For budgeting purposes, you may estimate the value of space and services that are being offered to you free of charge.

For qualified candidates, NYFA has an addendum to our contract. Please contact [email protected] if you are interested in accepting private investment or equity for a sponsored project. 

NYFA offers a crowdfunding partnership with Seed&Spark, as well as custom online fundraising tools to Artist Projects and Emerging Organizations. If you are interested in conducting a crowdfunding campaign for your project, please contact Fiscal Sponsorship staff, as we are happy to help you identify your best strategy.

NYFA cannot process donations from any other crowdfunding platforms including Kickstarter, Indiegogo, and GoFundMe.

No. NYFA Fiscal Sponsorship does not raise money or solicit donors on your behalf.

Yes.

No. NYFA does not file taxes on behalf of any sponsored project. Projects that raise funds through NYFA Fiscal Sponsorship are legally responsible for reporting money they receive from their project as income to the IRS.

No, you are responsible for filing your own taxes and providing 1099s to your vendors.

Donations via check, direct deposit/wire transfer, or stock are processed weekly. Donations via credit card are processed every 7-10 business days.

Payments are disbursed on a weekly basis from NYFA to sponsored projects and organizations.