Alternatives Unincorporated by George Zachariah download in iPad, ePub, pdf
How will both be assured against tax fraud. Fiscal sponsorship, sometimes referred to as fiscal agency, is a way to receive tax-deductible contributions by using the tax-exempt status of another organization as an umbrella. Alternatives to Starting a Nonprofit While many people are tempted to incorporate first, there are a number of options for undertaking a new activity without starting a new organization. You may have ideas that they would welcome, including resources that may be available to finance the new undertaking. Organizations considering working with a sponsor should first identify several possible sponsors with missions in sync with that of the new organization.
Those that choose to remain as an unincorporated association may undertake risk to board members and founders by not incorporating the organization. Fiscal sponsors often provide more than the use of their tax-exempt status.
By incorporating, the organization becomes a legal entity and can only be liable for the assets of the organization. Start a local chapter of a national or regional organization. Explore the list of national organizations in the subject area of your interest, and see if a local chapter is needed in your geographic area.
Fiscal sponsorship is a complex, individualized process. It is strongly recommended that both parties consult with legal professionals to ensure their interests are being met in the sponsorship agreement. An incident involving an unincorporated organization may put personal assets of board members, volunteers, or others, at risk. If you are considering creation of a group to finance activities or needs of others, plan to work on a limited-time project, or want to test a program idea first, exploring fiscal sponsorship.
Study the list of nonprofits already active in the same subject and geographic area and join their efforts as a volunteer, a board member or even as staff. Create a special program of an existing effort. Find a fiscal sponsor for your organization. Maintain an unincorporated association. Work with each of these organizations to find the best fit in terms of missions, working style, and location.
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