Fiscal Sponsorship
Definition
A relationship where a nonprofit organization provides its tax-exempt status to a filmmaker's project, allowing donors to make tax-deductible contributions. Fiscal sponsors typically charge 5% to 10% of funds raised. This arrangement is especially useful for documentaries and educational films that can attract grants and charitable donations. A fiscal sponsor also handles accounting and donor reporting.
Example
A documentary filmmaker partners with From the Heart Productions as their fiscal sponsor. A donor contributes $5,000 and can deduct it on their taxes, while the fiscal sponsor takes a 7% fee ($350).
Related Terms
Put this into practice
Filmcane helps you manage your distribution across AVOD, SVOD, TVOD, and FAST platforms with smart links, pixel tracking, and analytics. Create your first smart link free.
Get Started Free