All projects participating in Fiscal Sponsorship must fit within our organizational guidelines. In addition, contributions to a 501(c)(3) are deductible for Federal income tax purposes to the extent allowed by law.
What is Fiscal Sponsorship?
Fiscal sponsorship is a contractual relationship in which a 501(c)(3) organization, such as The Gotham, agrees to sponsor a project for the purpose of fundraising through grants and donations. This program allows a project that lacks tax-exempt status to seek grants and tax-deductible donations, with The Gotham overseeing the process and following IRS regulations. Many individual donors, foundations, and corporate funders will only donate to an established 501(c)(3) organization.
What is a 501(c)(3) organization?
A 501(c)(3) organization, commonly called a charitable organization, must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3) of the Internal Revenue Code, and none of its earnings may inure to any private shareholder or individual. The organization may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates. All projects participating in fFiscal sSponsorship must fit within our organizational mission. In addition, contributions to a 501(c)(3) are deductible for Federal income tax purposes to the extent allowed by law.
How much does it cost to apply to the Gotham's Fiscal Sponsorship program?
The application feel for the Gotham's Fiscal Sponsorship program is $50. Approved projects must also have a director or producer who is a member of the Gotham at the Essential level or higher. An Essential-level membership is $100/year. Learn more about membership here.
Do you accept international projects for the Fiscal Sponsorship program?
No. We only accept projects for which either the director or producer has an American Social Security Number (SSN) or an American Employer Identification Number (EIN).
Can I use crowdfunding sites like Kickstarter to raise money via fiscal sponsorship?
No. Due to strict IRS guidelines, the Gotham’s Fiscal Sponsorship program is unable to take donations from third-party crowdfunding services like Kickstarter or Seed & Spark. Filmmakers are free to use these services in addition to raising money via the Fiscal Sponsorship program, but money raised via crowdfunding campaigns is not eligible for the same tax-incentives as money raised via fiscal sponsorship.
What about matching donations/funds?
Yes. Corporate matching is a great way to bolster giving to your project. Currently The Gotham utilizes two approved platforms, Benevity & Bright Funds, for corporate matching gifts. These platforms have been vetted by The Gotham and comply with internal policies as well as IRS regulations.
Does fiscal sponsorship allow the project to be absolved from tax reporting?
No. Contributions received and disbursed by The Gotham will likely be treated as income by the IRS. The Gotham will issue Form 1099-MISC for total payments over $600 during the calendar year to each project, except if the project is a corporation. An LLC is treated as a partnership, except if The Gotham has received certain written notification from the LLC stating that each member of the LLC is a corporation. Consult a tax advisor to determine your specific liability.
Why does the Fiscal Sponsorship program have an application process?
The Gotham must insure project activities are conducted according to IRS regulations and must establish discretion and control over the project’s contributions received. Furthermore, we need to know if the project fits the Gotham’s mission and guidelines to be a legitimate sponsor for the project. Once the application is approved, a sponsorship agreement needs to be signed by the project’s representative and The Gotham to start the relationship.
Why does The Gotham need to establish discretion and control over a sponsored project?
A donor makes a contribution to The Gotham with the recommendation that The Gotham grant this donation to a certain project while also monitoring that their funds are used to produce the film/work and that all tax-reporting requirements are met. A project needs to send The Gotham their receipts to demonstrate that the money is being spent on creating their work. Only through this system will the IRS approve the donation as tax-deductible.
Is there a minimum we should aim to raise through fiscal sponsorship?
Yes. We ask that projects seeking fiscal sponsorship aim to raise at least $10,000 through The Gotham.
Once I am fiscally sponsored, have I become a non-profit?
No. Being sponsored at The Gotham does not make the project or production company a tax-exempt organization.
Does The Gotham Fiscal Sponsorship process in-kind contributions?
No. The Gotham Fiscal Sponsorship is not able to accept or grant a charitable gift letter for in-kind contributions, such as donations of goods or equipment.
Does the project retain its own legal identity if it has a fiscal sponsor?
Yes. Your project is a separate legal entity and not part of The Gotham. You retain creative control, ownership, and responsibility for tax reporting and liability.
What is the difference between corporate sponsorship and fiscal sponsorship?
Corporate sponsorship consists of support, usually in the form of money or materials, given directly to the project. Often corporate sponsors expect something in return, such as advertising or publicity. However, many corporations also maintain philanthropic programs that donate to tax-exempt charitable organizations. These programs will not provide funds to a filmmaking project but may donate to the project through a fiscal sponsorship program. A project selected for fiscal sponsorship is able to solicit tax-deductible contributions from these foundations, corporations, or government organizations.
Why is there an administrative fee?
The fee covers the cost we have for maintaining the Fiscal Sponsorship website and staff time to oversee the program. Our administrative fee is very competitive with other fiscal sponsorship programs.
Fiscal Sponsorship is a contractual relationship in which a 501(c)(3) organization, such as The Gotham, agrees to sponsor a project for the purpose of fundraising through grants and donations. This program allows a project that lacks tax-exempt status to seek grants and tax-deductible donations, with The Gotham overseeing the process and following IRS regulations. Many individual donors, foundations and corporate funders will only donate to an established 501(c)(3) organization.
A 501(c)(3) organization, commonly called a charitable organization, must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3) of the Internal Revenue Code, and none of its earnings may inure to any private shareholder or individual. The organization may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates. All projects participating in Fiscal Sponsorship must fit within our organizational mission. In addition, contributions to a 501(c)(3) are deductible for Federal income tax purposes to the extent allowed by law.
No. Contributions received and disbursed by The Gotham will likely be treated as income by the IRS. The Gotham will issue Form 1099-MISC for total payments over $600 during the calendar year to each project, except if the project is a corporation. An LLC is treated as a partnership, except if The Gotham has received certain written notification from the LLC stating that each member of the LLC is a corporation. Consult a tax advisor to determine your specific liability.
The Gotham must insure project activities are conducted according to IRS regulations and must establish discretion and control over the project’s contributions received. Furthermore, we need to know if the project fits the The Gotham mission and guidelines to be a legitimate sponsor for the project. Once the application is approved, a sponsorship agreement needs to be signed by the project’s representative and The Gotham to start the relationship.
A donor makes a contribution to The Gotham with the recommendation that The Gotham grant this donation to a certain project while also monitoring that their funds are used to produce the film/work and that all tax-reporting requirements are met. A project needs to send The Gotham their receipts to demonstrate that the money is being spent on creating their work. Only through this system the IRS will approve the donation as tax-deductible.
No. Being sponsored at The Gotham does not make the project or production company a tax-exempt organization.
The Gotham Fiscal Sponsorship is not able to accept or grant a charitable gift letter for in-kind contributions, such as donations of goods or equipment.
Yes. Your project is a separate legal entity and not part of The Gotham. You retain creative control, ownership, and responsibility for tax reporting and liability.
Corporate sponsorship consists of support, usually in the form of money or materials, given directly to the project. Often corporate sponsors expect something in return, such as advertising or publicity. However, many corporations also maintain philanthropic programs that donate to tax-exempt charitable organizations. These programs will not provide funds to a non-exempt filmmaking project but may donate to the project through a fiscal sponsorship program. A project selected for fiscal sponsorship is able to solicit tax-deductible contributions from these foundations, corporations, or government organizations.
The fee covers the cost we have for maintaining the Fiscal Sponsorship website and staff time to administrate the program.
The The Gotham Film & Media Institute fosters the development, production and promotion of hundreds of feature and documentary films a year. Learn more about us or become a member
