What is
Fiscal Sponsorship?
CultureWorks is proud to offer fiscal services in order to support the important cultural work happening in Philadelphia. This work takes place through our CultureTrust program.
We receive applications for fiscal sponsorship on a rolling basis, with dedicated intake rounds throughout the year.
Interested in learning more? Fill out this form.
CultureTrust - An Alternative to Nonprofit Management
Fiscal sponsorship offers an alternative to the complicated processes of starting a new nonprofit. Project leaders are responsible for implementing programs, while the fiscal sponsor ensures proper financial, legal, and administrative oversight with a formal arrangement organized under an existing 501(c)(3) status.
With a fiscal sponsorship in place, individuals and small teams leading projects are able to:
Raise funds
Receive tax-deductible donations
Become eligible for grants without creating their own formal business entity.
Read more below to learn about the type of fiscal sponsorship opportunities we provide at CultureWorks, through our CultureTrust program.
Model A Fiscal Sponsorship
This is the closest relationship between sponsor and fiscally sponsored project —there is no legal or corporate distinction between CultureTrust and the project. Each project becomes its own subtrust under CultureTrust, where income and expenses are held for the project. Functionally, a Project Director of a fiscally sponsored project in our Model A program acts as the head of their own department within CultureTrust. The project retains control over its mission, artistic/programmatic vision, and intellectual property, and CultureTrust serves as the direct contractor, insurer, and liability holder for all of the project’s activities, receiving all revenues and paying standard expenses.
Model C Fiscal Sponsorship
This model is more arm’s-length than the Model A, which is why we offer this as an optional “incubator” relationship to members. The relationship between the sponsor and the project is one of grantor (CultureTrust) and grantee (the project) and only concerns contributed revenues. Earned revenues — income received in exchange for goods or services, like ticket sales or fees for consulting — are not touched by the sponsor. Funds are received in CultureTrust’s account, and CultureTrust then re-grants them to the project when requested as a reimbursement.
Fees
CultureTrust allocates 12% of all incoming project revenues to cover the costs of shared services, staff labor, and General Liability and Directors and Officers insurance coverage we provide for Model A Fiscal Sponsorship.
Additionally, there is a $50/month Fiscal Sponsorship Administrative Rate that can be paid monthly or annually. This fee covers the cost of our shared fiscal sponsorship platforms and services even when a project is not bringing in revenue.
Fees
CultureTrust allocates 7% of all incoming contributed project revenues to cover the cost of charitable compliance, staff labor, and oversight costs we provide for Model C Fiscal Sponsorship.
Additionally, there is a $50/month Fiscal Sponsorship Administrative Rate that can be paid monthly or annually. This fee covers the cost of our shared fiscal sponsorship platforms and services even when a project is not bringing in revenue.
Additional Benefit - Co-Working at CultureWorks
At CultureWorks, we believe that support of fiscally sponsored entities is crucial in fortifying the cultural landscape in Philadelphia and beyond. That is why we are proud to offer complimentary special access to our co-working space for a member of the team for fiscally sponsored projects, as well as reduced cost access for multiple team members.
Benefits of utilizing the co-working space for fiscally sponsored projects include the following:
