Does your cooperative aim to create positive social impact? If so, grants and donations may be instrumental in helping you get there. However, many foundations, government agencies and donors prefer to give to established 501(c)(3) tax-exempt nonprofits.

For cooperatives interested in pursuing grant funding, but don’t have the time, resources, or interest in applying for 501(c)(3) status, partnering with Start.Coop as your fiscal sponsor can help.

What is fiscal sponsorship at Start.Coop?

Cooperatives partnering under our dynamic fiscal sponsorship program are able to leverage philanthropic and government support normally reserved for 501(c)(3) public charities. How does it work? Start.coop will first evaluate if the project your coop wants to carry out aligns with our mission. Then we will apply for and receive awards to support your work. You are responsible for determining the funding sources, preparing applications, and carrying out the project, if funded. In turn, Start.Coop will review and approve funding proposals, enter into award agreements with funders and then “regrant” funds it receives over to your cooperative to cover your costs associated with carrying out the project. We’ll work together to make sure the project is completed and reported on in a timely compliant manner.

Why work with Start.Coop as your fiscal sponsor:

• Access. The process to become a 501(c )(3) is long and arduous and ongoing compliance requirements are considerable. Receive tax-deductible donations before obtaining tax exempt status or even as an alternative to obtaining 501(c)(3) status.

• Credibility. Funders often only give to established 501(c)(3) public charities with solid track records. Add credibility by partnering with a nonprofit with a strong reputation in the cooperative community.

• Focus. You’re the best at developing and running your cooperative. Focus on what you do best while we do the rest - 501(c)(3) compliance and grant administration.

Eligibility

• The program or project being funded must align with the mission of Start.Coop. Start.coop aims to grow the cooperative model and increase education on the cooperative model.

• Project budget of at least $25,000 with committed funding sources or a compelling fundraising plan.

• A capable team to carry out the proposed work if funded.

• Pre-startup cooperatives who have not formed a legal entity are not eligible for fiscal sponsorship at Start.Coop.

• Your project must be based in the U.S.

Cost & Application Process

Most fiscal sponsors set aside 5 - 15% of funds raised to cover their costs associated with being a fiscal sponsor and providing administrative grant support. Our rates range from 2 to 10% of funds administered, depending on the size of the grant and the complexity of administration. Generally, the following rates apply to help us cover our costs:

For Philanthropic grants and donations:

Below $1,000,000: 5%

Above $1,000,000: 3%

Above $2,500,000: 2%

For Government grants:

10%

If you are interested in exploring fiscal sponsorship with Start.Coop, please fill out our application and we’ll be in touch. Once we’ve conducted our due diligence and you’ve had your questions answered, if both parties wish to proceed, we’ll enter into a fiscal sponsorship agreement and then we’re off to the races!