With many not-for-profit entities (NFPs) and programs in distress as a result of the pandemic, the important needs they serve are at risk. Fiscal sponsorship is one option for saving programs when the NFPs that operate them cannot be saved. This article provides an overview of fiscal sponsorship arrangements and key accounting and other considerations for the sponsoring NFP as well as a distinction of fiscal sponsor arrangements from fiscal agency arrangements.
A fiscal sponsorship is an arrangement between an