An Innovative Nonprofit Model for Year Round Education: Arts Education and Fiscal Sponsorship
By Ariel Shelton and Melinda Steffy
In today's complex cultural and economic ecosystem, innovative strategies are essential for nurturing the arts and ensuring they reach every community. Although many are aware of what it takes to establish a nonprofit organization, few are aware of the power and opportunities of the fiscal sponsorship model. This model not only accelerates the capabilities of smaller entities, but provides community and collective impact in a time when those ties are deeply needed.
At CultureWorks Greater Philadelphia, we’ve seen firsthand the transformative impact of this approach. We are excited to expand opportunities for sustainable, ongoing educational programming for young people through the model of fiscal sponsorship.
Photo by Rivage.
What is fiscal sponsorship?
Fiscal sponsorship is the practice in which a nonprofit organization provides their legal and tax-exempt status to external groups or projects. This arrangement allows grassroots initiatives to solicit and manage funds without undergoing the lengthy and often prohibitive process of becoming a 501(c)(3) nonprofit. At CultureWorks, we provide essential management services to 80+ fiscally sponsored projects. Those services include finance, HR, legal, insurances, bookkeeping, and grant management. We also provide an affordable co-working space, host business development workshops, amplify the work of projects through marketing campaigns, and consult with projects to support their growth and sustainability.
For those providing arts education within the community, fiscal sponsorship means quicker setup times, less administrative burden, and more time focusing on what truly matters: cultivating creativity and growth in young minds.
Six ways fiscal sponsorship facilitates strengthened cultural outcomes for the next generation
Utilizing fiscal sponsorship, grassroots organizations can achieve more with less — less money, less time, and fewer administrative hurdles. Here are six key points to consider when leveraging fiscal sponsorship for:
Robust Arts Education: Fiscal sponsorship allows organizations to focus on program delivery rather than on the nuances of tax law and financial management. This efficiency leads to expanded reach and more robust engagement in under-resourced communities, leading to sustained arts education opportunities for young people
Authentic Community Connections: As fiscal sponsors handle the backend, grassroots leaders are free to build genuine relationships within the community. These authentic connections are vital for tailoring programs that resonate with and fully engage the community's youth.
Sustainability and Growth: Under the charitable status of a fiscal sponsor, arts programs can more easily secure grants and donations, ensuring stable funding. Sustainable funding means programs can provide ongoing, consistent benefits to children and their families.
Flexibility to Innovate: With a lighter administrative burden, grassroots organizations can use their creativity to adapt and innovate in their programming. They have opportunities to collaborate and share ideas with other programs across the network. This flexibility is crucial in responding to the ever-changing needs of the communities they serve.
Compliance and Best Practices: Fiscal sponsors help to ensure grassroots educational programs remain compliant with local, state, and federal regulations, and maintain the insurances and certifications required by schools and partners.
Professional Development Opportunities: Through partnerships with a fiscal sponsor, staff and volunteers often gain access to training and professional development, enhancing the quality of education and administration they provide.
A call to action
For those of us dedicated to the growth and development of children through the arts, leveraging fiscal sponsorship is a path worth exploring. It offers a viable and efficient method for expanding our reach and impact, ensuring that the transformative power of the arts continues to build prosperous, connected, and creative communities.
We invite other organizations and community leaders to consider this model, and to work with CultureWorks to galvanize resources towards supporting these efforts. Together, we can work towards a future where every child has the opportunity to flourish through the arts, contributing to a richer, more vibrant society.
Say Hello to Cultureworks!
CultureWorks provides management support services for arts, heritage, and creative communities. With over 80 fiscally sponsored projects throughout the Greater Philadelphia region and a vibrant co-working space located in Center City, their dedicated community provides equitable access to resources for both individuals and organizations, the makers and preservers of culture.
