Fiscal Sponsorship

OVERVIEW

Fiscal sponsorship can offer a valuable alternative to starting a nonprofit. It is an effective and efficient means of starting a new initiative to help support your neighborhood park or garden, testing an idea before committing to it long-term, or fundraising while waiting for 501(c)(3) status. As a fiscal sponsor, City Parks Foundation confers the legal framework for and the benefits of our 501(c)(3) tax-exempt status to sponsored partners engaged in projects and activities that follow our mission.

We offer fiscal sponsorship for 100+ partners, providing fiduciary oversight, financial management, and services like network building and expert-led workshops to help build capacity. Donations are directed to City Parks Foundation and restricted to supporting our sponsored partners’ activities.

Each sponsored partner is assigned a fiscal sponsorship advisor – a staff person who is your go-to for any questions, issues, and reports. For volunteer-run organizations with annual expenses of less than $175,000, project leaders work with the staff of Partnerships for Parks, a joint program of City Parks Foundation and NYC Parks. Project leaders will typically work with City Parks Foundation staff for projects with operating budgets of more than $175,000 annually.

For further general information about what fiscal sponsorship is, and how it can benefit you, click here.

ELIGIBILITY TO APPLY FOR FISCAL SPONSORSHIP

In order to be considered for fiscal sponsorship, sponsored partners must:

Have demonstrated experience in programming or care of NYC’s parks or open spaces with at least two designated, accountable contact persons for the project or group
Be supported by and able to attract funding from community donors, public agencies, and other funders
Have established goals, regular financial activity, and the capacity to deliver on commitments

RESPONSIBILITIES

City Parks Foundation and Partnerships for Parks
- Offer 501(c)(3) tax-exempt status for grant eligibility
- Provide financial management and tracking of funds spent, including distributing reimbursements to project leaders and payments directly to third-party vendors
- Share annual distribution of 1099-MISC tax form for vendors/contractors as required
- Provide dedicated fiscal sponsor advisor for annual check-in and to assist with goal setting, grant application and reporting review, event promotion, non-legal contract review, and more
Note that we do not offer payroll services, web hosting, access to office space and facilities, assistance with 501(c)(3) application, direct funding, or case-specific legal, tax and/or accounting advice.
Sponsored partner leaders
- Share critical project updates such as funding opportunities, spending requests, budget, structure, leadership, and project close-out in a timely manner
- Complete check-in meetings with fiscal sponsorship advisor and submit annual survey
- Communicate with project donors including project updates and reporting

APPLYING FOR FISCAL SPONSORSHIP

Phase 1 | Partnership Assessment and Application Invitation
Review ‘Eligibility’ section above. If eligible, submit your Partner With Us form. We’ll initiate a phone call to determine fit and alignment with our Vision, Mission, and Approach.
- If we determine the project is a good fit, we will share an application for fiscal sponsorship.
- If we determine the project is not a good fit, we will share other fiscal sponsors that may better align with the project’s needs and goals.
Phase 2 | Application Review and Approval

We will review your application and provide feedback if needed. Once feedback has been reconciled, we will share the final outcome of the application.
Phase 3 | Onboarding

If the project is accepted, you will be invited to begin the onboarding process. Onboarding will include signing a Memorandum of Understanding (MOU), depositing your initial funding into your account, and an orientation meeting with your dedicated fiscal sponsorship advisor.

RATES

Fiscal Sponsorship for Grassroots Groups

This sponsorship is available for mission-aligned projects with annual operating budgets or balances of less than $175,000, unless otherwise agreed upon.

Fees
- Our grassroots sponsorship fee is 10% of all grant awards or donations upon deposit.
- There is no fee to apply. There is an initial contract fee of $100 and a contract renewal fee of $50 for the duration of the partnership, to be deducted from account balance or provided by the Sponsored Partner.

Enhanced sponsorship

This sponsorship is available for complex projects, endowments, or capital related campaigns and utilizes a fee based on the average annual balance of the sponsored account. Please email fiscalsponsorship@cityparksfoundation.org to inquire about this program before applying.

Fees
- Sponsorship fee is determined on a case by case basis depending on the project.
- There is no fee to apply. There is an initial contract fee of $1,000 and an annual contract renewal fee of $250 for the duration of the partnership.

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TESTIMONIALS

“Partnering with the City Parks Foundation as our fiscal sponsor, was not only integral to assisting in the creation of the Alliance for Flushing Meadows Corona Park but afforded us the opportunity to learn from a well-established non-profit organization. Having CPF as our fiscal sponsor allowed us the chance to grow and evolve while saving on the overhead required to operate as an independent 501c3. With their guidance and support, the Alliance for FMCP was able to better establish ourselves and prepare for fiscal independence. We are happy to say as of April 2023, after 7 years, we were able to do so, and we owe our early success to the City Park’s Foundation’s willingness to create those opportunities for us.”

- Anthony Sama, Alliance of Flushing Meadows Corona Park

Slide 1

TESTIMONIALS

"Working with a fiscal sponsor can be a game-changer for any grassroots organization, and we are incredibly grateful to have the City Parks Foundation as our partner. The seamless administration of grants and donor support is a responsibility we deeply value in them. Most importantly, the cachet of operating under the stewardship of such a respected entity has elevated our reputation, helping us connect with new resources and gain greater community support...we deeply appreciate being aligned with the City Parks Foundation—it has been key to amplifying our impact within the community."

-René Scotland, Friends of Commodore Barry Park

FISCAL SPONSORSHIP