What is fiscal sponsorship?

VDA members are eligible for fiscal sponsorship from VDA.

Fiscal sponsorship is often used by newly formed nonprofits or individuals who are not recognized as tax-exempt by the IRS to raise money for a project or start-up.

  • In order to claim a tax deduction, donors must donate to an organization that is recognized by the IRS as tax-exempt pursuant to IRS Code Section 501(c)(3). VDA is a recognized 501(c)(3).

  • Most private foundations require grantees to be recognized as tax-exempt by the IRS.

How it works:

  1. Submit a cover letter to info@vermontdance.org requesting fiscal sponsorship. The cover letter should include:

    • a description of your project and how it aligns with VDA’s mission and vision for Vermont dance

    • a budget for your project

    • a timeline for your project

  2. VDA will review your request and reply with a decision within two weeks. If the decision is yes, VDA will send a contract.

  3. If VDA is serving as your fiscal sponsor, use our Tax ID number when writing grants. Individual donors should make checks payable to Vermont Dance Alliance.

  4. VDA will receive and hold your funding.

  5. Submit invoices to VDA for project expenses, and we will distribute the funds to you within two weeks.

  6. You are responsible for cultivating donor relationships, sending thank you letters to donors, and submitting grant reports.

  7. VDA will collect a 10% administrative fee from all grants and from donations of $250 or more.

Questions? Contact us!