Fractured Atlas Fiscal Sponsorship Agreement: What You Need to Know
If you`re an artist or a creative working on a project that requires funding, you may have come across fiscal sponsorship programs. Fiscal sponsorship enables individuals and organizations to receive tax-deductible donations for their projects without having to create a nonprofit organization themselves. Fractured Atlas is one such nonprofit organization that offers fiscal sponsorship services to independent artists and organizations.
Before you sign up for Fractured Atlas`s fiscal sponsorship program, it`s essential to understand the terms of their agreement. Here are some important points to consider:
1. Eligibility Requirements
To apply for Fractured Atlas`s fiscal sponsorship, you must be an individual artist or a nonprofit organization that meets their eligibility criteria. For individuals, you must have a specific project or program that aligns with Fractured Atlas`s mission. Nonprofit organizations must not have any political affiliations and must be in good standing with the IRS.
2. Commission and Fees
Fractured Atlas charges a commission fee of 7% on all donations received through their fiscal sponsorship program. Additionally, there is an annual administration fee of $75 for individuals and $150 for organizations. These fees cover the organization`s expenses and are necessary to maintain their services.
3. Use of Funds
Funds received through Fractured Atlas`s fiscal sponsorship program must be used for the specific project or program that was approved in the application process. Any unused funds must be returned to Fractured Atlas or transferred to another fiscal sponsor.
4. Reporting Requirements
Fractured Atlas requires regular reports from sponsored projects, including financial reports, project updates, and acknowledgment of donations. Failure to submit reports on time may result in the suspension or termination of fiscal sponsorship.
5. Termination of Agreement
Fractured Atlas reserves the right to terminate the fiscal sponsorship agreement if the sponsored project does not abide by their policies or mission. Additionally, either party may terminate the agreement with a written notice, which will become effective 30 days after the receipt of the notice.
In conclusion, Fractured Atlas`s fiscal sponsorship program can be a valuable resource for independent artists and organizations seeking funding. However, it`s essential to understand the terms and conditions of the agreement before signing up. It`s also wise to consult with a tax professional or attorney to ensure that you are in compliance with IRS regulations and Fractured Atlas`s policies. With the right preparation and understanding, Fractured Atlas`s fiscal sponsorship program can provide a valuable boost to your creative endeavors.