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Report: New York City dance companies increasingly embrace Fiscal Sponsorship
Pia Catton, The Wall Street Journal, 8/31/12
As the economy and philanthropy have evolved, so have the expectations of dance artists. A new report by Dance/NYC examines what that shift will mean for artists and audiences going forward. The report, to be issued Sept. 7, looked at dancemakers in New York City who have chosen to join existing arts organizations in an arrangement known as "fiscal sponsorships" rather than establish new nonprofit entities. Any funds raised are donated through the sponsoring organization, then passed along to the choreographer or company, rather than being donated directly. "It comes at a time when the field is re-evaluating the nonprofit model," said Dance/NYC director Lane Harwell. "The resources that might have inspired a dancemaker to form a nonprofit aren't as readily available." Fiscal sponsorship isn't a new concept. The nonprofit New York Foundation for the Arts has made the option available since its founding in 1971. But it is being increasingly embraced because new online tools have made it easier for artists to interact with sponsors and donors. The Dance/NYC report collected information on more than 250 city-based dance-making entities sponsored by five institutions. Said Mr. Harwell, "This gives us the ability to have benchmarks. We will be able to track this over time." Though the report should lead to better and broader information later, one hypothesis set out is that fiscal sponsorship may be reducing the number of new nonprofits (which may not be an accurate reflection of the field) and at the same time increasing the overall support for dance in the city by streamlining the process for donors and grant-makers. The impetus for the report came when a 2011 study, "State of NYC Dance," which used data collected by the New York State Cultural Data Project, neglected to illuminate the lower-budget end of the spectrum. "What wasn't captured was all those dancemakers operating outside of the nonprofit structure or making under $25,000," Mr. Harwell said.
Commentary: What to look for when searching for a Fiscal Sponsor
Maritza Guzm�n, Public Interest Projects blog, 6/20/12
Yesterday we talked about the basic building blocks to have in place before you begin your search for a fiscal sponsor -- your project summary, budget, fundraising plan, and prospects. Once you have these basics in place, you are ready for your initial conversations with a potential fiscal sponsor. As you look for the right organization to house your project, keep these guidelines in mind:
1. Mission fit. Finding the right fiscal sponsor is a little like finding the right partner in life. You want to find someone with whom you are philosophically compatible. The process can take time and several conversations to find a good fit. Look for a connection between your mission and that of your potential "nonprofit home." Find out if they sponsor other projects similar to yours.
2. Track record. What is your potential fiscal sponsor's track record? How long have they been in business? Can you talk to any projects that have been sponsored by them? Is fiscal sponsorship a core service they provide? These questions can help you determine how much infrastructure the organization has in place to address the needs of your project.
3. Financial health. Sadly, there have been recent high profile cases of fiscal sponsors closing their doors. The projects are left wondering what happened to their money. The good news is that you can take some precautions up front as part of the selection process. Do they carefully track and report on restricted funds? Do they strive for transparency in their interactions with projects? How often does each project receive their financial reports? Do financial reports detail all transactions, both revenue and expense? Does the Board of Directors receive and review quarterly financial statements to ensure the overall financial health of the organization? What do they do if projects are running low on money? A responsible fiscal sponsor will not advance money to any project, and rigorously reviews, tracks and complies with all contractual obligations, including grant agreements.
In September, four webinars about the basics of Fiscal Sponsorship
Dianne Debicella, Fractured Atlas blog, 8/15/12
[Debicella is Fractured Atlas's Program Director for Fiscal Sponsorship. She helps over 2,500 sponsored artists and emerging organizations, representing all artistic disciplines, find funding and other resources to support their work.] Fractured Atlas is offering four different fiscal sponsorship and fundraising sessions by webinar in September [on Tuesdays from 7:30-8:30pm EST]:
Sept 4: Introduction to Fiscal Sponsorship: For those considering fiscal sponsorship. We'll provide an introduction and overview, and talk about the benefits of the program. We'll also go over the application for the Fractured Atlas fiscal sponsorship program, and talk about our criteria for approving applications.
Sept 11: Orientation for New Fiscally Sponsored Projects: For new projects recently accepted into Fractured Atlas program. The webinar will provide a tour of the online tools and resources, tips for starting your fundraising, and an overview of program policies.
Sept 18: Introduction to Fundraising: Individual Donors and Online Campaigns Webinar: We'll talk about how to identify and engage donors, and how to keep them coming back! We'll go over individual appeal letters, tools such as crowdfunding and online campaigns, and more. For any fiscally sponsored project ready to learn basic steps to start and run an individual giving program.
Sept 25: Proposals & Grants for Fiscally Sponsored Projects: Best practices when applying for a grant. We'll provide an overview of different types of institutional support, how to find funders, what is needed in a proposal, and more. This webinar is for any fiscally sponsored project that has met the Fractured Atlas eligibility requirement to apply for grants.
Additional resources on Fiscal Sponsorship
Gene Takagi, Nonprofit Law Blog, 8/23/12
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