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Fiscal Sponsor

Fiscal Sponsor

Fiscal Sponsor Lessens the Risk

Learning how to start a non profit organization can be an expensive and time consuming undertaking and a Fiscal Sponsor might help. It is wise to consider the attrition rate in the non profit arena before creating one. A large percentage of those that start a non profit decide at some point that the benefits are not worth the work and give up on their charitable dreams. Starting a non profit is a lot of hard work, but so is creating any successful business. The steps to success require determination and resolve, and through it all the rewards are worth the effort. Follow along and I will share some tips to lessen the risk that your non profit joins the failures, especially if you find a fiscal sponsor.

Financial challenges are a top reason that many non profits do not see success. Initially, when starting an independent 501c3, processing and filing fees can be well over two thousand dollars and many months of work can be put into its creation. That is a lot of time and money to risk when starting a non profit if it does not find success and fails. One way that the charity can lessen the financial risk from the start is by creating a non profit through a fiscal sponsor rather than an independent nonprofit. Starting a non profit through a fiscal sponsor  should not run more than $400 in set up costs and a few hours work to complete the paperwork. This is significantly less than the cost to start an independent nonprofit and therefore puts less investment at risk and imposes a lower financial burden on the new nonprofit.

Fiscal Sponsor Saves Money

By starting a non profit through a fiscal sponsor , the nonprofit should have the ability to do anything it could as an independent 501c3 non profit. Fiscal Sponsorship is a formal arrangement in which a 501c3 public charity sponsors a project that needs non profit status. Having a fiscal sponsor is a great way to start a non profit and allows the organization to do non profit work with 501c3 status without all the hassle or expense of starting an independent non profit.

There is no reason to risk thousands of dollars starting a non profit if you can have it created for several hundred dollars. In addition, should the non profit want to spin off as an independent 501c3 nonprofit in the future, that is always an option even through it started out through a fiscal sponsor.

Fiscal Sponsor Benefits

There are a few other added benefits to starting a non profit through fiscal sponsor that lessens its risk. Many sponsors provide lots of training to help the newly formed non profit succeed. We at Simple Nonprofit provide support and training for nonprofits through free articles on this web site, free articles by subscribing for free, and the Simple Nonprofit Starter Bundle. This assures that those running the non profit have expertise and support to help them guide the non profit. The more expertise and guidance a non profit can get the more likely it will continue on to success. A fiscal sponsor  may also provide accounting, bookkeeping, banking and other administrative services to help the sponsored non profit succeed.

So, while starting a nonprofit organization 501c3 can be expensive and time consuming, there are positive alternatives through a sponsor and here at Simple Nonprofit that lessen the risk. Consequently, the help a fiscally sponsored organization receives does more than lessen the risk, it enables it for greater success.  Likewise, organizations who would like one-on-one help, and loads of resources that put them on the fast-track to success when they start a non profit organization can download the “Simple Nonprofit Starter Bundle” here or get more FREE fiscal sponsor information at “Start a Nonprofit.”

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