Fiscal Sponsorship FAQs
- Are donations to the Program tax-deductible?
Yes, as long as the donor is receiving nothing of value in return. If a donor is paying for services, like a conference or a dinner, then the Fair Market Value of that item is not deductible. All donations must be sent to Service After Service for deposit. We will place these funds (minus our applicable fees) into an internally segregated account to be used to further your charitable purpose. DO NOT open your own local bank account. THIS IS PROHIBITED.
- Do you assist with fundraising?
No, Service After Service does not raise funds for your program. The Sponsored Organization is responsible for soliciting the funds and grant monies to support the program. Service After Service is responsible for receiving and administering charitable contributions and grants on behalf of the program.
- Will my project have a separate bank account?
Funds for your project will be tracked separately. Do NOT open a Local Checking Account or a Bank Account of any kind. Local checking and bank accounts bearing the name of a Program at Service After Service are not permitted. All donations must have your program name clearly stated on it or it may not be credited to your program properly.
Checks can be mailed by the donor or Sponsored Organization to Service After Service using the address below:
Service After Service
Attn: Sponsored Organization Name
415 Howe Ave Ste 311
Shelton, CT 06484
Checks may be made payable to Service After Service. The Sponsored Organization Name must be written in the memo of the check. Do not endorse these checks. If you have collected cash, please send us a cashier’s check or money order for the funds. The Sponsored Organization Name must be written in the memo of the cashier’s check.
- Do I have to do any filing, registering, or other administrative tax documentation?
No. When you are a sponsored organization under Service After Service, we do all the paperwork. We file the IRS Form 990 annually that includes the activity of all our programs. You must, however, submit a Quarterly Activity Report to Service After Service to tell us what you’ve been doing, both successfully and not so successfully. Due by COB of 1st day of each quarter.
- Once a Program is accepted, is it considered a non-profit?
Being a fiscally sponsored program at Service After Service does not make the Program an independent tax-exempt organization. Those who donate to your program at Service After Service gain the benefit of a charitable deduction for income tax purposes by donating to Service After Service, a 501(c)(3) nonprofit organization.
- How do you handle products that we might sell?
Service After Service is the owner of all assets, including intellectual property, for the duration of time your Program is fiscally sponsored. We will hold the asset for the exclusive benefit of your project. If your Program leaves to become an independent 501(c)(3) or operate under a new sponsor, the intellectual property (along with all other project assets) will go with the project.
- We’re thinking of applying for our own 501(c)(3) in the next 6 months. Are you okay with that?
If the sponsored organization receives their 501(c)(3) status during the agreement period, a written request (via email) must be submitted to review the originally signed Fiscal Sponsorship Agreement. In most cases, the agreement will be terminated no less than 15 days from the date of this review. It is best to send notification as soon as you are aware that you are a tax-exempt organization.