NNFS Guidelines
for Best Practices of Fiscal Sponsorship
Many nonprofits engage in fiscal sponsorship activity on an occasional basis. This practice carries certain inherent risks. Nonprofits should engage in fiscal sponsorship only if their executive leadership and boards of directors are fully aware of the obligations and liabilities they legally assume as fiscal sponsors, and understand how offering fiscal sponsorship fits into the organization’s mission. The purpose of these Guidelines is to raise awareness, broaden the understanding of fiscal sponsorship, and to promulgate standards of best practice for the field in order to improve the practice of fiscal sponsorship and increase its value to society. These are best practices, not just for fiscal sponsorship, but that reflect the highest operational standards for any organization operating in the public interest. These documents are divided by model and have evolved over six years of meetings of the Steering Committee of the NNFS with extensive input from the field.