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, legal framework, and capacity-building support that Tides Center provides, typical projects pay only nine percent (9%) of their annual revenue. Being fiscally sponsored is extremely cost effective and saving money is critical for organizations that are just emerging, testing new approaches to difficult social problems, run entirely by volunteers, or working in issue areas where funding is scarce. Fiscal sponsorship is an efficient, economic way to reduce the cost of running an organization and still maintain the integrity of the organization’s purpose.