From Fractured Atlas, the fiscal sponsor of Arthur Magazine:
We all know the arts need funding to survive. Fortunately there are philanthropic individuals, charitable foundations, and government institutions who recognize this need and provide support.
The Need
Most independent artists, however, including countless small or new arts companies, lack the all important 501(c)(3) tax status that makes those donations legal and desirable. That’s where fiscal sponsorship comes in.In a Nutshell
Fiscal Sponsorship is a financial and legal system by which a legally recognized 501(c)(3) public charity (such as Fractured Atlas) provides limited financial and legal oversight for a project initiated independently by an artist. That “project” might be a one-time project or an independent artist or even an arts organization that does not have its own 501(c)(3) status. Once sponsored in this way, the project is eligible to solicit and receive grants and tax-deductible contributions that are normally available only to 501(c)(3) organizations.The Catch
Anytime you’re dealing with the IRS (which regulates these issues), you can bet there are going to be some complicated legal issues involved. Many well-intentioned, legitimate organizations across the country provide fiscal sponsorship programs for artists. Very few of them are doing it legally, though, and most don’t even realize the danger in which they’re putting themselves and their sponsored projects. If the IRS ever decides to crack down, they could lose their 501(c)(3) status, and their sponsored projects could be forced to return any money raised under the arrangement.The Solution
Fortunately, Fractured Atlas is here to help. Our fiscal sponsorship program is legal, efficient, and affordable. Our program is open and accessible to artists and arts organizations nationwide and in every discipline. We won’t judge your work’s artistic quality or merit; that’s for others to decide. Our job is to give you the tools you need to raise the money to make it happen.
Arthur Magazine 