Fiscal Sponsorship
Tyndale House Foundation makes grants to organizations both inside and outside of the United States. U.S. organizations must be registered 501(c)(3) charities. Organizations outside the U.S. are required to have a Fiscal Sponsor that can receive funds on their behalf. Fiscal Sponsors are U.S. 501(c)(3) organizations that receive funds on behalf of non-U.S. organizations and pass the money along in accordance with U.S. law. Organizations functioning as Fiscal Sponsors must comply with the administrative and legal requirements of being a Fiscal Sponsor.
Fiscal Sponsors can benefit international organizations by enabling them to receive funds from U.S. donors, and by providing oversight and administrative assistance for different projects. U.S. law stipulates that Fiscal Sponsors must retain full discretion over the use of grant funds and are ultimately responsible for making sure that the project is carried out in accordance with the mission of both the applying organization and the Fiscal Sponsor. Fiscal Sponsors retain the right to redirect funds if the sponsored organization is not able to complete the project.
If you are interested in pursuing Fiscal Sponsorship, reach out to an organization whose mission is compatible with the project you are seeking funding for, and discuss with them your desire to seek Fiscal Sponsorship.
Tyndale House Foundation requires Fiscal Sponsors to create an account in our Grant Application Portal and provide us with a copy of the Fiscal Sponsorship Agreement.
What does a Fiscal Sponsorship agreement contain?
A Fiscal Sponsorship agreement should include the following and be signed by executive staff from both organizations:
•A statement that the sponsored organization’s project is consistent with the sponsoring organization’s mission and purpose.
•A statement that the sponsor retains full discretion and control over the use of any granted funds and, if necessary, may redirect funds if the sponsored organization is unable to implement the project as stated in the proposal or if the mission and purpose of the sponsored organization no longer aligns with the mission and purpose of the sponsoring organization.
•A statement that the sponsoring organization is responsible for complying with the terms of the grant and will provide oversight of the project and use of funds in order to assure all funds are used for the designated charitable purposes.
•An explanation or detailing of administrative fees charged by the fiscal sponsor.
•A clear definition of the structure and role of the sponsored organization’s Board of Directors, project advisory group (if any), and staff members.
•Authorization by the Board of Directors of the Fiscal Sponsor.