FISCAL SPONSORSHIP OF LOCAL LGBTQ AAPI ORGANIZATIONS
The National Queer Asian Pacific Islander Alliance (NQAPIA) is a federation of lesbian, gay, bisexual, and transgender (LGBTQ) Asian American, South Asian, Southeast Asian, and Pacific Islander (AAPI)organizations. We seek to build the organizational capacity of local LGBTQ AAPI groups, develop leadership, promote visibility, educate our community, enhance grassroots organizing, expand collaborations, and challenge homophobia and racism. NQAPIA is incorporated as a nonprofit, tax-exempt IRS 501(c)3 organization.
To support local LGBTQ AAPI organizations, NQAPIA will provide limited 501(c)3 fiscal sponsorship for local groups. The fiscal sponsorship relationship is transactional (one-time or as-needed), not a long term arrangement.
Fiscal Sponsorship for Foundation Grants
NQAPIA will fiscally sponsor local LGBTQ AAPI organizations to pursue a specific foundation grant or major donation which must go to a 501(c)3 tax exempt nonprofit.
This funding should support a specific project, activity or event. NQAPIA will accept the funding on the organization’s behalf and will directly pay for all of the organization’s expenses associated with the grant. The organization should identify the funder and develop activities to be undertaken under the grant, as well as a proposed budget. For the grant final report, the organization is responsible for developing the narrative of activities and NQAPIA will develop the financial reports.
NQAPIA and the local organization will enter into a Memorandum of Understanding for the fiscal sponsorship. For the donor foundation, NQAPIA will co-sign the grant agreement letter on behalf of the local organization. As the fiscal sponsor, NQAPIA will also develop the final budget report and will fulfill all the IRS reporting requirements. An administrative fee of 10-15% will be assessed, depending on the grant size and reporting requirements.
This is not a permanent or long term arrangement. It is provided to local LGBTQ AAPI groups on an as-needed basis for when funding opportunities arise and a 501(c)3 tax exemption is required. While NQAPIA assume the financial administration of the grant monies, the organization is still responsible for its overall financial oversight, bookkeeping, and maintenance of its own finances.
Tax Deductible Donations
The fiscal sponsorship also applies to major donors who seek to make a financial contribution to a local organization and would like to receive a tax deduction for their contribution. NQAPIA will provide the acknowledgment letter and comply with annual IRS reporting requirements. The funding will then go to the organization, less an administrative fee of 5%.
Items for Fiscal Sponsorship
This fiscal sponsorship arrangement is to help local organizations secure foundation grants and/or tax deductible donations to execute a specific, short-term project, activity, or event. Examples include, but are not limited to:
- Strategic Planning
- Translation services
- Design, development, and production of materials (e.g., website, brochure, flyer, poster, newsletter)
- Tabling fees for outreach at cultural festivals, parades, LGBTQ Pride
- Fees for advertisements
- One-time fundraisers
- Conferences, workshops, trainings
- Peer-support groups
- Political mobilization
- Needs assessment
Budget items may include consultant fees, meeting expenses for food, room and space rental fees, tabling and parade fees, printing, translation, web hosting, supplies, materials, minor equipment, or travel expenses.
In this fiscal sponsorship arrangement, NQAPIA will:
- accept the funding on the organization’s behalf
- directly pay for all the organization’s expenses associated with the grant (consultants, printing, translation, room rental and other fees, food, supplies)
- develop the final financial report to the funder at the end of the grant term
- submit the final narrative report of activities—written by the organization—to the funder at the end of the grant term
- fulfill the nonprofit reporting requirements to the IRS (i.e., 990 form)
- adhere to mutually agreed upon deadlines and accomplish tasks in a timely and professional manner
Local Organizational Responsibilities
In this fiscal sponsorship arrangement, the local organization must:
- identify the funder;
- develop the grant proposal, listing activities to be undertaken under the grant and a proposed budget;
- execute the project, activity, or event (see above for ideal items for fiscal sponsorship);
- develop the grant final narrative report, detailing all activities that occurred under the grant, and a listing of expenses; and
- adhere to mutually agreed upon deadlines and accomplish tasks in a timely and professional manner.
NQAPIA can also provide the following services on an as-needed basis:
- Provide liability insurance for events, naming the vendor and local organization (as a member of NQAPIA) as insured parties
- Accept on-line credit card payments and donations
An administrative fee of 10% will be assessed for grants, depending on the grant requirements, and 5% for individual contributions. Credit card donations have a dual 3% and 40¢ processing fee per transaction.
Attached is the Memorandum of Agreement that must be signed by an organizational representative and NQAPIA.
IV. Contacts and Questions
Organizations interested in fiscal sponsorship should contact Glenn D. Magpantay at NQAPIA at firstname.lastname@example.org or 917-439-3158.