Fiscal Sponsorship Program Information
The Athens Area Arts Council is a non-profit arts organization whose goal is to integrate the vast cultural resources of Athens into the fabric of our educational system and economy, as well as the culture of our community. As part of this mission, the AAAC seeks to sponsor unique performances and events that will broaden the exposure of the arts in our community in the areas of art, music, dance, theatre and literature.
What is a fiscal sponsorship?
In order for donors to receive tax credit, they must give to an IRS designated 501(c)3 organization. For small or new arts companies or groups that only wish to produce an occasional or yearly event gaining their own designation is cumbersome and expensive. By utilizing the AAAC Fiscal Sponsorship these organizations can legally accept donations from supporters who will receive tax credit.
How does my organization obtain fiscal sponsorship?
Please note that as an all-volunteer organization, AAAC relies on the time and talents of our board members to make decisions regarding Fisacl Sponsorship applications. Because of this, we accept applications throughout the year, but will review applications twice, as a committee, per year — once in April and again in September. The deadline for each review is April 1 and Sept. 1, and applications received after that time will be reviewed by the Treasurer, Vice President at the following date. This committee will then take its recommendations to the full board for a vote at that month’s meeting (the third Tuesday of the month), and applicants will be notified of the decision following the meeting.
Once my organization receives a Fiscal Sponsorship, what do we receive from the AAAC?
- Oversight from the AAAC Board of Directors and Treasurer, ensuring the funds are used for the specified project
- A document stating that your organization is officially partnering with the AAAC for the specified project
- The AAAC address in case donors wish to donate directly and give the credit to your organization
- The AAAC IRS Federal Identification Number in case any donors need it and so you can purchase items tax-free
- A year-end letter summarizing all transactions between your organization and the AAAC
- All donors will receive a formal receipt for their donations.
Sometimes you will require documents showing AAAC’s tax-exempt status. Here are a few available to you:
- 2012 W-9 filing (e-postcard)
- 2013 W-9 filing (e-postcard)
- Nonprofit determination letter from the IRS
What does the AAAC get out of Fiscal Sponsorship?
Fiscal Sponsorships help fulfill our mission of encouraging and supporting the arts in the Athens Area.
In order for donors to receive tax credit, all donations must be granted to the AAAC. The AAAC will in turn keep 10% of the donation to further its mission and send a check for the remaining 90% to the sponsored organization.
Is there anything else my organization needs to know?
By assisting you, the AAAC is lending its non-profit status, and not providing monetary support.
The AAAC reserves the right to pull funding from any of its Fiscal Sponsorship recipients if it is determined that the funds are being misused for personal gain, projects other than the one specified in the Fiscal Sponsorship agreement, or in any ways that are not outlined in the project’s budget agreement. All funds will be returned to the donor(s) in these instances.
The AAAC is not responsible for securing a venue, acquiring equipment or personnel for said project.
The AAAC is also not liable for any debts incurred by your group or this proposed event.
If your application is accepted, the donors and granting agencies will make the grant payment to the AAAC, which will take 10% of the grant and then send a check for the balance to you. Be mindful, therefore, that your budget should include this fee.
In accepting this payment from AAAC, you are not relieved of the legal responsibility to fulfill every requirement of the grantor as if you had received the money directly.