Fiscal Sponsorship
Making philanthropy affordable.
Step 1: Understanding who we are and what we sponsor
Applications are considered on an ongoing basis. There is no submission
deadline. The initial review of your application will take place within two weeks of submission. You typically will receive notice of the decision within one month of submitting your application. In the event that we will need additional information, that process may take longer.
WHAT DO WE SPONSOR?
MVP supports fiscally sponsored projects that are consistent with our IRS-approved
charitable mission. Projects must increase the quality of life for the
residents of Madison City. The term "project" is used very broadly and may refer
to a one-time project, an ongoing group or program, or even the creation and
maintenance of public green space or playgrounds.
WHAT CAN'T WE SPONSOR?
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Award programs, grant programs, scholarship programs, or any other
scenario in which you'll be re-granting the money you receive from us.
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Commercial projects with the primary goal of making money.
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Projects without a substantial Madison City component.
FISCAL SPONSORSHIP CONTRACT
By applying, you agree to be legally bound by a governing fiscal sponsorship
agreement, an example of such agreement may be provided upon request.
WHAT IS THE RELATIONSHIP BETWEEN MVP AND ITS SPONSORED PROJECTS?
Fiscal sponsorship has many different models and programs differ. MVP’s
fiscal sponsorship program is typically structured as a grantor-grantee
relationship. In our general program, sponsored projects are treated as
separate legal entities that are responsible for their own tax returns,
employment taxes, insurance, debts, liabilities and other legal obligations.
Although fiscal sponsorship does not give projects 501(c)(3) status, it does enable
them to access many of the benefits of MVP’s 501(c)(3) status.
While we consider the City and its leaders important partners in fulfilling our
mission, we take great care to ensure we are apolitical.
Step 2: Program eligibility and benefits
PROGRAM ELIGIBILITY
In order to be approved, you must demonstrate the following:
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Project activities will improve the quality of life of Madison City residents.
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Activities must be charitable in purpose.
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You have a legal entity with a US tax identification number (either a Social Security Number or Employee Identification Number) that will be responsible for all money released from the fund (which is taxable income -more on that shortly).
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You have a United States mailing address.
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You have a valid email address that you regularly check.
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You have regular access to the internet.
PROGRAM BENEFITS
The core program benefit that MVP brings is the ability to solicit
tax-deductible contributions or grants in support of your activities.
Step 3: Policies and procedures
WHAT IS THE RELATIONSHIP BETWEEN MVP AND ITS SPONSORED PROJECTS?
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Fiscal sponsorship has many different models and programs differ.
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MVP’s fiscal sponsorship program is typically structured as a grantor-grantee relationship. In our general program, sponsored projects are treated as separate legal entities that are responsible for their own tax returns, employment taxes, insurance, debts, liabilities and other legal obligations.
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Although fiscal sponsorship does not give projects 501(c)(3) status, it does enable them to access many of the benefits of MVP’s 501(c)(3) status.
GENERAL PROCEDURES UPON APPROVAL
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Review and sign the final contract.
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Keep your contact information on file up to date - if we don't have a current email address, we can't alert you to donations your project received!
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File an annual report at the beginning of each year for the previous year -don't worry, we'll contact you when this is due!
FUNDRAISING PROCEDURES
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You may not begin fundraising until our Board of Directors has approved your sponsorship application.
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As a fiscally sponsored project, you are responsible for your own fundraising.
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Take some time to think about your development strategy, project identity and whom you'll contact as potential sources of funding.
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All written solicitations (i.e. requests for money) must be approved by our staff before you send them out.
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In order to be eligible to apply for grants, you must raise $1,000 in your fund or provide documentation that you have raised $1,000 in contributions within the last two years for the same project.
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All grant applications (for which you will be using MVP as a fiscal sponsor) must be reviewed by MVP staff before being submitted to the funding source.
SOME IMPORTANT NOTES
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The legal entity associated with the fund is responsible for reporting all money released from the fund to the IRS as taxable income. MVP will issue 1099 forms as required by law.
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The legal entity associated with the fund may be transferred at any time by signing a contract amendment agreement.
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If you are considering applying to the IRS to become a 501(c)(3) tax exempt organization, we strongly suggest doing your research.
Step 4: Application
APPLICATION FORM
Fill out the application below as completely as possible and submit it.
Applications with incomplete information will be rejected.
MVP’s Board of Directors reviews applications for sponsorship on an ongoing
basis. Generally speaking, if your membership is in good standing and your
proposed activities appear to fall within the range of our tax-exempt
purposes, then you can expect that your application will be approved.
Once the Board has decided about your application, you will be notified
within one to two weeks.
