Fiscal Sponsorship at Tides Center

What is Fiscal Sponsorship?

Fiscal sponsorship is an efficient means of starting or continuing new charitable initiatives, delivering public services, and seeding social movements. In a typical fiscal sponsorship relationship, a nonprofit organization’s 501(c)(3) tax-exempt status is extended to groups engaged in activities that serve the fiscal sponsor’s mission, typically for a fee. Donations to the project are directed to the fiscal sponsor and are restricted to supporting activities of the charitable venture. The fiscal sponsor is responsible for assuring the activities of the project fulfill their charitable purpose. 

Tides Center is a 501(c)(3) public charity organization that offers fiscal sponsorship to  approximately 130+ projects. As a fiscal sponsor, Tides Center provides strategic advisory, fiduciary oversight, financial management, human resources and other administrative services to help build the capacity of charitable projects. 

Learn more about Fiscal Sponsorship at Tides

Why Fiscal Sponsorship at Tides Center?

Tides Center is the leading fiscal sponsor for social change initiatives in the United States. We have a long history of providing high quality services and support to our community and have sponsored over 1,400 emerging nonprofits. Tides Center is committed to the missions of its projects with a shared vision to advance social justice and shift power in historically marginalized communities. 

Becoming a Fiscally Sponsored Project at Tides Center

Tides Center accepts fiscal sponsorship applications all year long. However, we review and approve applications four times per year. This allows applicants to prepare in advance and choose the application window that is best for them. 

Phase 1 |  Partnership Assessment and Application Invitation
After you’ve completed Tides’ Partner With Us form, we may initiate a phone call to determine fit and alignment with Tides’ vision and mission. If a fit is determined, you’ll be invited to apply for fiscal sponsorship. 

Tides Center reviews applications for fit and alignment with our vision and mission and to ensure that we have the organizational capacity to support the project’s mission and goals. Your application is also reviewed to ensure that the proposed project furthers a legitimate tax-exempt purpose and is in full compliance with relevant nonprofit laws. Tides Center reserves the right to make such determinations in its sole discretion. 

Phase 2 | Application Review and Approval
Tides Center staff reviews your application and may provide feedback. Once any feedback has been received and considered, a decision will be made on your application. 

Phase 3 | Onboarding
Once accepted, final steps are set in motion. This includes signing a Memorandum of Understanding, transfer and receipt of required funding into a Tides Center bank account, and meeting service teams. Fiscally sponsored projects join like-minded peers within impact areas, supported by a cross-functional team of staff with deep experience and expertise including senior advisors and advisors, senior accountants and human resource managers assigned to them. 

Phase 4 | Orientation
During this final phase, project staff will participate in a series of training sessions with its service team. 

What to Expect

Phase 1 |  Partnership Assessment and Application Invitation
Our intake team may request initial calls with you to gather information about the goals, needs, and activities of your project. 

We’ll assess fit and alignment with Tides Center’s mission, eligibility requirements, operational and service capacity, and budget. We’ll also answer any general questions you may have about fiscal sponsorship, as well as any specific questions you may have. If we determine your project is a strong fit for fiscal sponsorship at Tides Center, you may be invited to submit a more detailed online application. 

Phase 2 | Application Review and Approval
Once you complete and submit your application, Tides Center staff will review your application and may provide feedback or request additional information. At this time, we may also assess insurance eligibility and requirements. Once any feedback and additional information have been received and reviewed, Tides Center will make a decision about your application. 

Phase 3 | Onboarding
If your application is approved and the offer accepted, we will finalize the terms of the fiscal sponsorship relationship through a Memorandum of Understanding. If your project is transferring from another fiscal sponsor, all transfer agreements must be finalized during this phase. Once paperwork and funding are finalized, our HR Manager will reach out to you to begin the hiring process for your team. 

Our intake team will introduce you to your cross-functional service team, consisting of advisory, finance and human resources. Your service team members will also be activated to help you with your transition to Tides Center. 

Phase 4 | Orientation
During this final phase, you’ll participate in a series of training sessions with your service team. The trainings will focus on Tides Center’s policies & processes, our systems, and partnership expectations. 

What Does Fiscal Sponsorship Cost?

For the comprehensive suite of acceleration services that Tides Center provides, including financial management, legal framework, and capacity-building support, projects are charged  9% of their annual revenue. 

A well-run independent nonprofit can expect to spend between 20-30% of annual revenue on administrative and overhead expenses. Tides Center fees are in line with other fiscal sponsors practicing similar models of fiscal sponsorship. 

After the first year of activity, projects that exceed $1 million in operational activity may qualify for a reduced fee. 

The fee for all funding from government sources is 15%. The fee is higher for this type of funding because government grants entail significantly more paperwork and reporting. 

Have More Questions?

Please visit our FAQs. If you still have questions that aren’t answered here or in our FAQs, please contact us.