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Fiscal Sponsorship Notes




  • The following is information from Catalysts for Youth, a non-profit organization in the San Francisco Bay Area which has an aligned Cause and also functions as a Fiscal Sponsor:

    • Catalyst for Youth, a public charity and educational non profit organization, offers fiscal sponsorship for projects and organizations that target a youth and young adult population. A Catalyst for Youth fiscal sponsorship will allow you to approach grantors who require applicants to be an IRS recognized tax-exempt, 501 (c) 3 organization. A fiscal sponsorship program with Catalyst also benefits individuals who can fund your project by making their contribution(s) tax-deductible to the fullest extent of the law. As your fiscal sponsor, Catalyst serves as the go between for your organization, the grantee, and the grantor. In essence, Catalyst is extending its exempt status in order to help your organization reach its fundraising goals.

      Should your organization secure a grant, Catalyst will monitor the program’s financial and grant reporting activities to ensure that all conditions set forth by the grantor are met. If your organization receives a donation Catalyst will mail them a tax receipt letter for the amount.


    • As a fiscal sponsor Catalyst offers:

      • 501(c)3 (proof of tax-exempt status)
      • Receipt and distribution of all funds
      • A maintenance record of all fiscal activity
      • A bank account for grantees’ monies

      Your organization remains a separate legal entity that at no point becomes a part of the sponsoring organization, Catalyst for Youth. Your program is responsible for its own bank fees and checks, taxes, general property, insurance, liability, audit, and workers compensation insurance.


    • General Guidelines

      1. Your organization is a program that primarily benefits young people.
      2. Your organization has a clear plan of action and a realistic budget.
      3. Catalyst charges an initial nonrefundable $50 administration fee to set up a separate bank account should the board approve your application and then requires a minimum of $150 to deposit in the new account (note that we don’t take any fees on an opening deposit amount. After Catalyst takes a 10% fee on all subsequent donations, stipends, and grant money coming through our books to cover the costs of administration and bookkeeping. This fee will be automatically drawn with receipt of any money.
      4. Catalyst must be copied on all your communications with potential donors, including copies of proposals final reports and project expense documentation, in order to fulfill our obligations.
      5. Your organization must recognize Catalyst for Youth as a sponsor on your website and on all announcements, applications to funders, programs, etc.


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