Here is a checklist of considerations before you enter into a fiscal sponsorship relationship.
I have an artist’s statement or mission statement for my project.
This should be short and sweet – not more than 3 sentences. Who are you? What do you do? Why do you do it?
I have identified possible income that requires a fiscal sponsor.
Common sources include:
In-kind donations (donations of goods – supplies, tools, equipment, silent auction items, etc.)
My project has a reasonable timeline.
The grant process often takes several months – if you plan to seek grant funding, be aware of the funder’s deadlines and timetables for decisions, disbursements, and reporting requirements.
I know what my business structure is.
Some examples are:
Sole proprietorship/individual artist
Nonprofit project affiliated with a different company
I have a separate bank account for my arts business/organization.
While this is not strictly necessary, it is highly, highly recommended to help keep track of your project’s income and expenses.
I have a bookkeeping system.
This does not have to be fancy – a spreadsheet, a check register, and a separate account are good places to start.