Fiscal Sponsorship Frequently Asked Questions
What is fiscal sponsorship and why is it needed?
Members benefit from a fiscal sponsor relationship, through an affiliation with a tax-exempt 501(c)(3) organization, mainly by allowing access to funding opportunities and other resources available only to 501(c)(3) non-profit organizations.
With F/VA as your Fiscal Sponsor, your contributors have the opportunity to receive tax benefits on their contributions. In addition, you will be able to apply for grants that are available only to those who have non-profit status.
What does 501(c)(3) mean?
501(c)(3) is the tax determination given to a non-profit charitable organization at the federal level.
Does F/VA's Fiscal Sponsorship program provide direct funding?
No. The Fiscal Sponsorship program is not a grant-making program. However, having a fiscal sponsor allows a member to apply to many foundations who do not accept applications from individuals.
Why does the Fiscal Sponsorship program have an application process?
Sponsored project activities must be conducted according to IRS regulations. For Fiscal Sponsorship to comply with these regulations F/VA must establish direction and control over the project. The program is regulated and secure through this application process and internal procedures regarding grants and contributions to sponsored projects. In addition, our Letter of Agreement—which each accepted project must sign to commence sponsorship—governs the relationship between F/VA and the sponsored member project in order to meet the needs of all the parties involved.
Does F/VA retain any artistic control or rights by being my Fiscal Sponsor?
No. You will retain complete creative control and ownership of your project. The project is also responsible for tax reporting and liability issues. Once you have been accepted as a Fiscal Sponsee with F/VA, we will act as your liaison when accepting grants, contributions, and other income on behalf of your project. F/VA will serve as agent for all tax-exempt contributions.
Why does F/VA need to keep track of how we spend our money?
F/VA is legally responsible for the funds received on behalf of the sponsored project and must insure that the project uses the funds accordingly.
How should I acknowledge F/VA as my Fiscal Sponsor?
You must acknowledge in all credits, website, press releases and announcements that your project was fiscally sponsored by F/VA. All funds you acquire must be used solely for artistic, educational, or charitable purposes, set forth in the proposal in regards to your project.
In addition to fiscal sponsorship, what other services does F/VA’s Fiscal Sponsorship program provide to projects?
F/VA’s Fiscal Sponsorship program provides technical assistance and financial services to sponsored projects. Technical assistance takes the form of consultations via phone, fax, email and in-person on a range of subjects, including, but not limited to: general grant information, fellowship opportunities, e-blasts and tailored fiscal sponsorship programming.
What's your fee?
In return for our services, F/VA will retain 7% of all project income (as an administrative fee).
What makes a donation tax exempt?
If a person/company makes a donation to your film and they have no intention of ever seeing a return on that money, it is simply a gift. This type of donation is eligible for a tax deduction.
If a person/company gives money with the smallest hope of seeing a return on that money, it is an investment and therefore, is not eligible to receive a tax deduction. Remember: It is illegal to portray the contribution as a gift, if it is meant for-profit. In other words, the person/company cannot change his mind mid-way through. It is either a donation or investment from the start.
What if I have a donor who lives abroad and wants to contribute?
This is possible, but checks can take a long time to process and it is a case by case scenario. If you do want to continue, Nicole, our Finance Director, recommends doing a wire transfer into our bank. There is a $30.00 fee. You must contact Nicole in order to get the routing information.
What if I have a donor that wants to give a stock donation?
F/VA can receive stock donation on your behalf through our brokerage company. Your donors contact Film/Video Arts when a stock donation has been made. This will ensure that your account is credited properly and will help avoid any delays in processing.
What is the In Kind Contribution Form?
This form is to be filled out completely by both the filmmaker and donor representing the goods or services that have been donated to the film project. The value of the donation is based on the fair market value. If you are unsure of the fair market value of the donation look to: IRS PUBLICATION 561. If you want to know what types of donations can be deducted and how to claim a deduction look to IRS PUBLICATION 526. You can find both of these documents on the IRS website.
Does F/VA fiscally sponsor any festivals or organizations?
Yes. F/VA does fiscally sponsor a number of larger entities. ImageNation Film Festival, Rural Route Film Festival and Harlem Film Festival are a few examples of festivals we sponsor.
Do I need to keep F/VA informed about changes to my project?
The director and producer must contact and report to F/VA with quarterly project updates as well as when the project is completed and ready for exhibition.
If you have any further questions regarding F/VA's Fiscal Sponsorship Program, please contact Mario Paoli, the Director of Fiscal Sponsorship and Filmmaker Programs, at mariopaoli@fva.com.