Fiscal Sponsorship

Making philanthropy affordable.

Step 1: Understanding who we are and what we sponsor

APPLICATION TIMELINE

Applications are considered on an ongoing basis. There is no submission

deadline. The initial review of your application will take place within one to two

weeks of submission. You will receive notice of the decision within one to two

weeks of submitting your application.

WHAT DO WE SPONSOR?

MVP supports fiscally sponsored projects that are consistent with our IRSapproved

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?

Award programs, grant programs, scholarship programs, or any other

scenario in which you'll be re-granting the money you receive from us.

Commercial projects with the primary goal of making money.

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

  1. In order to be approved, you must demonstrate the following:

  2. Project activities will improve the quality of life of Madison City residents.

  3. Activities must be charitable in purpose.

  4. 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).

  5. You have a United States mailing address.

  6. You have a valid email address that you regularly check.

  7. 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?

  1. Fiscal sponsorship has many different models and programs differ.

  2. 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.

  3. 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

  1. Review and sign the final contract.

  2. 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!

  3. 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​

  1. You may not begin fundraising until our Board of Directors has approved your sponsorship application.

  2. As a fiscally sponsored project, you are responsible for your own fundraising.

  3. Take some time to think about your development strategy, project identitY and whom you'll contact as potential sources of funding.

  4. All written solicitations (i.e. requests for money) must be approved by our staff before you send them out.

  5. 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.

  6. 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

  1. 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.

  2. The legal entity associated with the fund may be transferred at any time by signing a contract amendment agreement.

  3. 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.