Q&A: 501(c)(3) Organization & Fiscal Sponsorship

What does it mean to be a 501(c)(3) organization?

Being "501(c)(3)" means that a particular nonprofit organization has been approved by the Internal Revenue Service as a tax-exempt, charitable organization. "Charitable" is broadly defined as being established for purposes that are religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children.

Source: https://www.501c3.org/frequently-asked-questions/what-does-it-mean-to-be-a-501c3-organization/

What is a fiscal sponsorship?

Fiscal sponsorship is a formal arrangement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. This alternative to starting your own nonprofit allows you to seek grants and solicit tax-deductible donations under your sponsor's exempt status.

Source: https://grantspace.org/resources/knowledge-base/fiscal-sponsorship/

5 Key Resources for Philanthropic Community

Black Philanthropic Resource Library from the Association of Black Foundation Executives (ABFE).

Five Lessons for New Philanthropists by Kimberly Dasher Tripp & Michael Kleinman from the July 2015 issue of the Stanford Social Innovation Review.

Handbook for Giving Circle Hosts produced by the Forum of Regional Association of Grantmakers, this guide provides tools and tips for developing giving circles.

Philanthropy 101 from the Association of Baltimore Area Grantmakers.

Philanthropy Network Greater Philadelphia: The region’s membership organization and service hub where regional funders come together to learn, connect and take action.
 

Local Resources for Non-Profits

GrantProposal.info -  Free resource for valuable information on fundraising, grant writing and other nonprofit supports.

GuideStar – Create a free account and you’ll gain access to a searchable database with information on every IRS registered nonprofit (Psst… most foundations are IRS registered nonprofits). Learn about an organization’s mission, impact, finances, reputation, programs, governance and more.

The Nonprofit Center at La Salle University: The Nonprofit Center offers leadership development, educational programs, consulting services, networking opportunities and job listings to help nonprofits strengthen their management, governance and operations.

Pennsylvania Association of Nonprofit Organizations (PANO): PANO is the statewide membership organization serving the nonprofit sector through advocacy, collaboration, education and other services.

The Regional Foundation Center (RFC): Located at the Free Library of Philadelphia’s main branch, the RFC houses Philadelphia's largest collection of resources on fundraising, nonprofit management, philanthropy and institutional advancement. The RFC also provides free access to the Foundation Directory Online—the most comprehensive database of U.S. grantmakers and their grants.
 

4 Ways You Can Learn About Black Philanthropy Today

When you're getting engaged with a new initiative like the Philadelphia Black Giving Circle, it may be hard to figure out where to begin when you want to dive deeper to black philanthropy. Fortunately for you, we have your back with 4 key resources and reports you can read today to get your hands more entrenched into the inner workings of Black philanthropy. This section will continue to feature additional resources, reports and articles that are tied to the giving circle and its overall mission.

Please click on the links below and let us know of any other places you'd think would be essential to anyone interested in this giving circle!

RESOURCES

REPORTS

A Rising Force: On the State of Black Philanthropy

by Ade Adeniji 

Thanks to a few hundred years of slavery and Jim Crow, followed by decades of economic exclusion, African American households have far less wealth than whites. In fact, according to a recent study by Demos and the Institute on Assets and Social Policy, the typical black household now has just 6 percent of the wealth of the typical white household.

This deep racial wealth gap wouldn't seem to bode well for black philanthropy. In fact, though, black Americans have a long history of philanthropic commitment. A report by the W.K. Kellogg Foundation a few years ago found that African Americans give away 25 percent more of their income per year than white Americans. With the cohort of people of color growing in size and assets, these populations will likely be even more important down the line. As we recently reported, a number of African Americans, as well as Latinos, are already giving at a substantial level.

This rising philanthropic muscle has been on display in fundraising for the new Smithsonian National Museum of African American History and Culture (NMAAHC), set to open later this month after years in the making. Aside from established foundations like Mellon, Gates and Atlantic Philanthropies, the museum's top donors also include black Americans like billionaires Oprah Winfrey, Michael Jordan and Robert F. Smith, as well as Shonda Rhimes, Kenneth Chenault and Richard Parsons.

Read the rest HERE.