Did you already read Recommendations 1-3?

#4 – What is their Track Record?
To find a fiscal sponsor who is a good fit, you want to know as much about them as they want to know about you and your project.  How many films have they sponsored?  What has happened to these films?  Do they have a good reputation within the film community?  What have you heard about how they are about disbursing funds, communicating with fiscal sponsorees, being a known entity to funders?  There are no right answers to these questions.  For some projects, it may be important to be with a long-established fiscal sponsor which has many projects under its umbrella which have gone on to fundraising and distribution success.  For others, a smaller organization which is more selective about its projects but which may offer other more hands-on services may be preferable.  Once again, you just want to know what to expect.

which brings me to

#6 – Do they provide services or other technical support?
This is not a must for every project.  Some filmmakers may only want or need an organization which just manages donations for their projects.  But a number of fiscal sponsors offer other benefits.  Fiscal Sponsors which require you to become a member of their organization often have a number of other programs you will gain access to at discounted rates, including publications and professional development programming.  Some may take fiscal sponsorees under their wing, becoming mentors or consultants to their sponsored projects.  Still others may serve a dual role as a distributor which some filmmakers may find beneficial.  Or perhaps they provide other services such as access to group-rate insurance, video or editing equipment, rented office space, accounting services, or screening space.

#7 – What fees do they charge?
While many filmmakers would probably put this at the top of their list of considerations for fiscal sponsors, we’ve put it at #7 because it could be penny wise, pound foolish to go with the lowest fee if you need more value from a fiscal sponsor.  That said, you do want to know what sorts of fees are involved — for the application process, for maintaining standing in the program, for administrative fees when you receive donations, and for any additional services you might need.  As noted before, while membership organizations may seemingly ding you twice for a membership fee and a fiscal sponsorship application fee, you are getting the benefit of fiscal sponsorship plus other benefits of membership.  Similarly, when comparing whether a fiscal sponsor charges a relatively low administrative fee or a higher one, it is also important to consider what the fiscal sponsor does for you.  Some fiscal sponsors with higher fees may also offer mentoring services or other technical support.  They may have someone on staff who does nothing but manage the fiscal sponsorship program, allowing for more individualized attention.  They may allow you to receive funds from federal funders, which often have a larger amount of paperwork required from the fiscal sponsor.  They may be set up to accept online donations.  There are many factors which go into how a fiscal sponsor sets up its fees, but rarely is any fiscal sponsoring organization doing much more than breaking even from these fees when compared with the amount of work involved in running a fiscal sponsorship program.

Keep reading…

As we begin a new year, many documentary filmmakers are starting to think about energizing their fundraising efforts and may want to expand their prospects by finding a fiscal sponsor who can help open up access to grants which can only be given to non-profit organizations.

While we should begin by noting that Docs In Progress is one such Fiscal Sponsor, we believe strongly that every filmmaker has to find a Fiscal Sponsor which is the right fit for their project.  If you want to explore what we have to offer, you can do so on our website.  If you want to check out a whole array of fiscal sponsors, we have a list of some of the main fiscal sponsors for film projects here.

Our Executive Director Erica Ginsberg has given talks at the Foundation Center on Fiscal Sponsorship in the Arts and the following list is adapted from that presentation.  She wrote this up because so much of the emphasis has been on what fiscal sponsors are looking for in fiscal sponsorees and yet fiscal sponsorees also should explore all their options to find a fiscal sponsor who is a good fit for their project.  Too many filmmakers focus only on which fiscal sponsor takes the lowest admin fee and not enough on all the other factors which can make or break a successful fiscal sponsorship relationship.

So let’s start at the top:

#1 – Does the Fiscal Sponsor sponsor projects like yours?
Seems like an obvious point, but you’d be surprised how many filmmakers don’t do their research.  Most formalized fiscal sponsorship programs have eligibility information.  For example, Women Make Movies is very clear: your project must be a non-commercial film, video or multimedia project; you must be a U.S. citizen; and the project director must be a woman.  Likewise, we at Docs In Progress won’t consider a project which isn’t a documentary.  Some fiscal sponsors may have geographic requirements or membership requirements.  Do your homework to make sure it is a good fit.  If you’re unsure after researching on the website, contact the staff person who is listed as running the Fiscal Sponsorship Program.

#2 – Which Fiscal Sponsorship Model Do They Follow?
We are not talking about Tyra Banks here.  We mean which type of fiscal sponsorship does their organization provide?  This could mean the difference between basically making a work-for-hire (not an inconceivable proposition if you are making a social issue film and have found a nonprofit with a similar mission who is willing to help fundraise, fund, or distribute the film) or having more creative control but needing to do all the fundraising yourself.  The majority of film organization fiscal sponsors follow “Model C” (also known as a Pre-Approved Grant Relationship) where the Fiscal Sponsor’s main responsibilities are to manage donations directly from individual donors or grant-makers and then “regrant” them to the filmmaker.  If you want to know more about Fiscal Sponsorship Models, the Bible of this topic is Greg Colvin’s book Fiscal Sponsorship: Six Ways to Do it Right or check out some of the resources at Colvin’s website.

#3 – Do they provide clear guidelines and sample agreements?
A Fiscal Sponsorship relationship is a legal one.  Although the term “pass-through” is often bandied about, any organization which does little more than let money pass through its name is not doing due dilligence to its stakeholders or its special tax status it has been granted as a nonprofit organization.  Nonprofits should maintain a degree of transparency and any Fiscal Sponsor should be willing to share with potential Fiscal Sponsorees clear written guidelines on what is involved in applying for Fiscal Sponsorship and what is expected of both parties.  Go in with both eyes open.

Next up, considerations 4-6…