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Fiscal Sponsorship FAQs

Frequently asked questions:

Q. What is fiscal sponsorship?

Fiscal sponsorship refers to a relationship in which one 501c(3) nonprofit organization, in our case OneOC, shares its tax-exempt status with a project or initiative that does not have an approved IRS nonprofit status.
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Q. What does the fiscal sponsor do?

OneOC is legally and financially responsible for all our fiscally sponsored projects and activities. Projects are not separate entities or affiliated organizations, rather they are a part of OneOC. Because they are an integral part of OneOC and not separate legal entities, projects are able to receive charitable donations and grants available only to tax-exempt organizations.

OneOC fiscal sponsorship provides community projects and initiatives:

  • administrative support
  • the opportunity to focus on programs and fundraising during the early stages of their organizational growth
  • tax‐exempt status for short-term projects and events

Additionally, OneOC’s Board of Directors has full governing authority, and full legal and fiduciary responsibility, for all projects, employees, and activities of our fiscally sponsored projects. To uphold OneOC’s legal nonprofit status, to ensure all projects follow the IRS regulations, and to maintain compliance with the law, OneOC staff monitors and maintains project finances, human resources, payroll, leases, contracts, and insurance.
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Q. Why choose fiscal sponsorship?

Starting a nonprofit and gaining 501c(3) tax-exempt status on your own is time-consuming and can be expensive, as is developing the administrative, legal, and financial operations necessary to build and grow a nonprofit. Fiscal sponsorship saves projects time and money by providing tax-exempt status and a shared administrative services. You can become a project as an interim step before creating your own 501c(3) organization, or like some of our projects, you can benefit from the efficiencies and cost savings of our shared platform for an extended period of time. Working under the umbrella of a fiscal sponsor makes sense for projects that are just starting out, short-term or one-off events, or collaborative efforts.
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Q. What does it cost?

A well-run nonprofit can expect to spend between 20-30% of annual revenue on administrative and overhead expenses. For the comprehensive suite of back-office services, including financial, HR, risk management, and capacity-building support that OneOC provides, projects pay only six to ten percent (6-10%) of their annual revenue. The range depends on size of project and human resource needs.

Q. Why choose OneOC?

Because OneOC focuses solely on accelerating nonprofit success here in Orange County. We are passionate about nonprofits and strengthening Orange County and we seek to support those who share our vision. Our projects all benefit from being part of our 50+ year history. At the same time, we are small enough to offer customized, individual attention with excellent service, yet large enough to provide a full array of services to help you build your organization.
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What we do for you

Fiscal Sponsorship FAQs

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Current and past OneOC fiscal projects

Donate to a OneOC Fiscal Project

For more information on how OneOC can help you, email Dan McQuaid, President/CEO, or call him at 714-953-5757 x 138