Why Fiscal Sponsorship?
Why it is advantageous to obtain 501c3 Project status through fiscal sponsorship rather than seek Independent 501c3 status?
Many tell us that they did not know that it was so easy to obtain the status to do nonprofit work in the US or anywhere in the world as easily as it was through Ocean Grand. There are two ways to obtain 501c3 nonprofit project status and start a nonprofit. We want to explain the two ways and give very detailed information about why fiscal sponsorship is easily set up and maintained.
1. Obtain Independent 501(c)3 Status
What’s involved in setting up my own 501(c)3 organization?
Setting up and maintainingIndependent 501(c)3 status is both labor intensive and expensive. The process could take from several months up to a year to get the tax exempt status. The disadvantage is that you therefore have full responsibility for managing those funds, including taxes, accounting, reporting, insurance, benefits, and any other details associated with the venture’s fiscal management. It is also quite expensive to obtain Independent 501c3 status and very prohibitive for most individuals and organizations. The process can often take up to a year to obtain Independent 501c3 status.
2. Obtain 501(c)3 Project Status through CDP
Independent 501(c)3 organizations are expensive to set up and costly to administer and maintain. Most individuals, organizations, and nonprofit groups can run nonprofit business a lot more efficiently and easily with 501c3 through fiscal sponsorship.
Most people who are doing nonprofit work simply need an organizational structure in which to do their work through, accept donations, and find ongoing funding. Instead of setting up an Independent 501c3 which costs thousands of dollars to start and maintain, many accomplish this much easier and less expensive by setting up their own 501c3 through fiscal sponsorshop with Ocean Grand’s help. With a 501c3 nonprofit set up through fiscal sponsorship, all of your administration, paperwork, banking, and staying within the IRS guidelines are all taken care of leaving you free to spend more time doing the nonprofit work you like. Ocean Grand can set an individual or organization up with full 501c3 nonprofit status through fiscal sponsorship in a few weeks for just $385. Ongoing costs are minimal at most saving you time and making the most of your fund raising efforts.
Many families, individuals and organizations actually doing nonprofit work funnel their funding through an already existing organization that charges them 10-15% for administration fees. Ocean Grand and fiscal sponsorship greatly reduces those fees by administering everything your organization does, including all your banking and filings for 8%. Ocean Grand also eliminates the need for forwarding agents or others to get you your funding once it comes in. All donations go to one address and you can wire money, or disburse one or multiple checks to anywhere you or others are in the world. For nonprofit work outside the United States this is especially beneficial because the individual or organization has instant access to funds whenever and however they need them .
Why the Fiscal Sponsorship Program is so Easy and inexpensive
The reason the fiscal sponsorship is so much easier than setting up an independent 501c3 is because it is through an organization that has 501(c)3 status and is willing to accept a venture under its umbrella. It can be thought of much like a new venture of an existing company. Fiscal Sponsorship is through an independent 501(c)3 that has more than 10,000 nonprofit ventures under its umbrella.
What are the benefits to such a relationship?
The two primary benefits are that the fiscal sponsor manages the venture’s taxes and accounts, does all necessary reporting, and the venture doesn’t have to wait to accept donations. Another huge benefit is the association with such a successful organization that commands respect even though your project is new to the world. Instantly your project is in association with an organization that has been around for many years. Fiscal sponsorship frees up all the time you would spend doing accounting, filings, taxes and even banking so that you can have all your time to run and make your program a success.
International Nonprofits
For nonprofits outside the USA the 501c3 project through Ocean Grand and fiscal sponsorship is one of the only ways to offer US citizens tax deductions for their donations. As a nonprofit outside the US, through Ocean Grand you can apply for a 501c3 project. This gives you US nonprofit status. In addition, it opens up huge possibilities for you to grant write and access over $360 billion giving each year to US nonprofit organizations through grants. With a fiscally sponsored 501c3 project you can grant write and accept any grants given to 501c3 organizations. All you need is proof of your nonprofit existence outside the US and you can apply for a International fiscally sponsored 501c3 project.
Ocean Grand can help an international nonprofit start a 501c3 project which gives its organization much easier access to grants an funding in the US. Many USA nonprofit funders give only to international projects and international organizations that have US 501c3 nonprofit status. This is why most international nonprofits come to Ocean Grand because a 501c3 project is one of the only ways that a nonprofit who is wholly outside the United States can obtain US 501c3 status.
In as little as two weeks and international nonprofit can have US 501c3 project status and begin grant writing and fund raising to US nonprofit funders. Last year alone over $360 Billion was granted to 501c3 nonprofits in the US, and as an international nonprofit in as little as three weeks could have much easier access to US nonprofit funding by having 501c3 status for the project.
Some things you will want to keep in mind:
Each fiscally sponsored project will have a Project Manager, who may not be a donor, nor may his or her family be donors. The Project Manager should be selected for his or her enthusiasm, knowledge and support of the chosen charitable field of interest.
Ocean Grand Network
Through forming a 501c3 project through Ocean Grand and fiscal sponsorship you automatically become a part of the Ocean Grand Network which can add great value and significance to your nonprofit program.
The Highlights of Ocean Grand Network
- Quick and Efficient Non-Profit Set Up- Ocean Grand can help you strategize on how best to continue to operate while putting in place more formal nonprofit filings and nonprofit organizational structures to continue nonprofit work around the world. We want to be involved and help you put the most affordable and efficient non-profit structure together. We can help you get temporary solutions in place while getting your 501c3 application process started.
- Workshops and Training- Ocean Grand orchestrates workshops and training for non-profits in grant writing, capacity building, building relationships with funders, fundraising and philanthropic development. We will be using the workshops to continue to teach grant writing and building relationships with funders. In the workshops we will spend concerted time exploring all the avenues that are recommended for bringing up a 501c3 the least expensive and most affiancing way. We will also have alternatives for accounting, bookkeeping, and administration of your 501c3. We are committed to seeing your nonprofit organization and by working together, we can make it easier and more effective for everyone.
- Nonprofit Tools- Ocean Grand has access to lots of tools for nonprofits that we want to inform you of and make accessible to you. We continue to put together partnerships and resources that are valuable to organizations that do noprofit business.
- Nonprofit Networking -Ocean Grand facilitates networking, and strategic alliances for non-profits so that they can be the most effectively aligned and integrated worldwide.
- Strategic Partnerships- If you are a nonprofit or aspire to be a successful non-profit in any industry or capacity, Ocean Grand can help you be more connected, better funded, farther reaching, higher educated, and have the best strategic partnerships than you could on your own.
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