Want to collect tax-deductible donations for an awesome project in your community? By crowdfunding on ioby, you can!
ioby is now offering fiscal sponsorship nation-wide to any project on our platform that needs it. Through fiscal sponsorship, ioby is able to accept tax-deductible donations on behalf of your project and pass them on to you, even if you are an individual or working with an informal, unincorporated group. It’s seamless and easy to set up. To be eligible, you simply need to have a US-based project that meets the overall criteria for fundraising on ioby.
What is fiscal sponsorship?
Fiscal sponsorship is an arrangement in which a legally incorporated nonprofit entity agrees to accept and manage funds for another entity, such as an individual or informal group. It usually occurs when a group or an individual wishes to receive tax-exempt contributions for charitable or community-focused activities without incorporating or building a full organizational infrastructure.
How does it work at ioby? Does it cost anything?
When you create your ioby campaign page, simply select the option that you need ioby to serve as your fiscal sponsor. ioby staff will email you a straightforward fiscal sponsorship contract. As your fiscal sponsor, ioby requires a certain level of documentation for all transactions. All project-related purchases must be substantiated by receipts or invoices, which may be sent by email.
Like most fiscal sponsors, ioby keeps a percentage of what is raised to help cover our administrative costs of managing the funds. We’ve kept our fee to 5%--much lower than most--in an effort to best support your great community-based work.
How do my donors know their donation is tax-deductible?
ioby sends an automatic thank you email to every donor to an ioby campaign. This email includes text confirming that their donation is tax-deductible to the fullest extent of the law, and serves as your donors’ documentation of their charitable donation.
What if I got a grant and need a fiscal sponsor to receive it?
ioby supports crowdfunding campaigns by local leaders who are working to build a base of supporters and donors in their community. If you are NOT interested in running a crowdfunding campaign, we’re not the right fiscal sponsor for you, and you should check out our tips on finding a fiscal sponsor here.
However, if you receive a grant during the course of your ioby crowdfunding campaign, we can accept it on your behalf and apply it toward your total fundraising goal online. The amount disbursed to you at the end of your campaign would be the total of any grant funds plus all the online donations you’ve raised, and ioby’s 5% fiscal sponsorship fee would apply to that total.
What if I already have a fiscal sponsor?
Great! You are welcome to crowdfund on ioby with a different nonprofit fiscal sponsor. We will just pass the funds you raise to them at the end of your campaign, and they will distribute them to you according to whatever agreement you have in place.
Learn more about fiscal sponsorship here.
For more info on ioby’s fiscal sponsorship service, email firstname.lastname@example.org or give us a call at (917) 464-4515, ext. 8.