Fiscal sponsorship is a less-costly and more efficient alternative to a nonprofit 501(c)(3) corporation. Fiscal sponsorship allows an unincorporated, charitable mission to reap the benefits of 501(c)(3) status through its relationship with its fiscal sponsor’s active 501(c)(3) status. A fiscal sponsor can provide a suite of administrative and financial supports, allowing staff to focus on the execution of their mission and programs. The fiscal sponsor is the legal and financial umbrella able to accept on behalf of projects charitable contributions and grants that can only be awarded to 501(c)(3) organizations. Both new charitable activities and long-established organizations are eligible to become fiscally sponsored organizations.
The practice of fiscal sponsorship has been in existence since at least 1959, when the Massachusetts Health Research Institute in Boston (now TSNE) began offering what is now known as “Model A” or Comprehensive Fiscal Sponsorship. For the first several decades, the field grew organically and only began to develop a field identity in the early 1990s with the work of attorney Gregory Colvin and his landmark book, Fiscal Sponsorship: Six Ways to Do It Right (Study Center Press, 1993), which has enjoyed two subsequent editions. Field building began to accelerate in the early 2000s with growing case law in support of fiscal sponsorship and the founding of the National Network of Fiscal Sponsors (NNFS) (2004) as the convening organization for the field, followed by the establishment of Social Impact Commons (2020) as a direct-service capacity builder for fiscal sponsors.
Projects from across Connecticut are welcome to apply so long as they fall under one of our Project Types. TPP is especially interested in supporting nascent and emerging projects led by Waterbury residents and/or historically exploited communities including but not limited to: Black, Indigenous, people of color, poor, queer, women, disabled and immigrants.
Absolutely! We know that our neighbors are equally as invested in the success of their communities and that, ultimately, we all benefit from bridging communities across town lines. As such, TPP uses the following geographic priority areas when reviewing applications:
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North End, South End & Downtown Waterbury
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Waterbury at Large
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Suburban Edge, Sister Cities & Western CT Counties
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Connecticut Statewide
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As a new organization ourselves, The People’s Place believes in doing things right, not fast. In February 2024, TPP kickstarted its pilot sponsorship program with two projects. Come 2025, TPP will offer Model B and C sponsorship for up to 5 additional projects, with a goal to offer Model A sponsorship by the end of 2026.
Model A: Direct Project (Comprehensive)
Under Model A, the sponsored project is part of the sponsor’s program activities. As no separate legal entity exists to conduct the project, the sponsor takes comprehensive responsibility for the project, assuming liability for and paying all of the project’s bills directly. If staff members are paid, they are generally treated as employees of the sponsor, and, if unpaid, they are the sponsor’s volunteers. Currently, project staff are paid as independent contractors from funds they raise. TPP seeks to transition contractors to full or part-time employment with access to a full benefits suite by the end of 2026.
Model C: Pre-approved Grant Relationship
Under Model C, the sponsored project is an incorporated entity that works independently from the sponsor’s portfolio while still aligning and advancing the sponsor’s mission. This grantor-grantee type agreement is more hands-off than in other models, whereby the sponsor serves as a pass-through to receive and disburse awarded grant funds to the sponsored project.
Yes! Things move quickly and the end of the year will be here before we know it. Submit your inquiry for fiscal sponsorship today so we can get the ball rolling and determine if TPP is the right fit for you!
No. As a fiscal sponsor, TPP is a co-manager that works alongside project leadership for everything behind the curtain. Your public face remains independent: your brand, donor/funder relationships, and decisions about vision, mission, and organizational development remain with you (and your board, if you have one). Fiscal sponsors are like shopping malls and projects like the individual storefront businesses. The individual businesses share lots of common resources provided by the mall (parking, common space, wayfinding, security, etc.), but retain their independent brands, customer relationships, and secure space for their assets.
It is commonplace for fiscal sponsors to charge anywhere between 6% to 20% of the project’s gross revenue to regain service costs. At The People’s Place, we aim to provide an equitable, transparent, and tiered fee-for-service model that allows projects to use more of the funds they raise towards their charitable efforts. This includes: a one-time onboarding fee to recover expenses related to intake, training, customization, and data migration; an hourly administrative rate to reflect the true cost to deliver the program; and a lower sponsorship rate (2% - 6%) to help generate profit and sustain the operations of our growing organization.
While all projects will have access to these services, nascent and emerging projects will be provided with limited hours of personalized assistance and guidance tailored to their specific developmental stage, at no additional cost, followed by a standard hourly rate thereafter. Fiscally sponsored projects also receive priority access and discounts to other TPP services like Co-working, Flex Space and Creator Labs.
Due to the liabilities associated with the following activities, we currently do not support groups which engage in or which include the following criteria:
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Operation of a law practice: routinely litigates or regularly provides legal services to the general public, such as legal aid clinics
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Practice medicine: provides psychological services, or provides medical treatment services of any kind. No HIPPA covered entities
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Engage in animal testing or research, running animal hospitals or work with exotic animals
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Provide programming in residential or overnight settings, such as group homes or overnight camps, to vulnerable populations, including, people with disabilities, senior citizens, children under the age of 18 or other groups
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Own and maintain land, buildings, or other real estate
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Offer primary programming that primarily hosts high risk activities that could result in injury or death
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Deliver services and programs outside of the United States
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Are a benefit corporation or a corporation that generate profits in addition to providing a public benefit
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Conduct research on human subjects, other than research that is limited only to data collection and analysis
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In most cases, yes, if it is an allowable 501(c)(3) activity, not in support of a political candidate, we are notified of your intention to engage in the activity PRIOR to carrying it out, and it is in alignment with our mission and values.
We welcome applications from faith-based projects, as long as they do not:
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Require adherence to a particular religious faith or doctrine
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Make claims that a particular religion or religious tradition is the “one true religion” to the exclusion of all others
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Make claims or enact practices that privilege members of a particular religion or religious tradition, or discriminate against non-members of a particular religion or religious tradition
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Claim that one particular religion has replaced all other religions
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Require their staff and/or constituents to actively participate in religious rituals
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Have as a primary purpose the advancement of prescribed belief or observance
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Concept-Stage Projects are novel ideas that an individual or group is looking to try out for the first time. The project is without:
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paid staff or a plan for paid staff in the immediate future
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funding, a fundraising plan, and/or cash reserves
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a strategic plan
No matter how new the concept, we hope that through fiscal sponsorship, we will give people the opportunity to pursue their dreams and positively impact the lives of others, both directly and indirectly. Concept-Stage Projects are encouraged to apply.
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Outside of Concept-Stage Projects, TPP does not provide funding or financial assistance to projects. Please DO NOT apply if you are seeking funding. Our Project Development Team is available to assist projects in their fundraising efforts including, but not limited to introductions to funders, sharing grant opportunities, grant outlining, and development of alternative revenue models.
All projects under TPP’s fiscal sponsorship must have an advisory board that provides oversight and guidance. The advisory board does not hold legal and fiduciary responsibility for the project, but it typically fulfills many of the roles usually held by boards of directors, including annual review of the project lead, fundraising and expansion of supporter and community partner networks, serving as ambassadors, and providing program and financial oversight. The size of your board should be manageable for a newly fiscally-sponsored project; three to five members is recommended.
