How to account for funds received through conduit?

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How to account for funds received through conduit?

I have allowed an emergency needs program seeking their own nonprofit status to use our 501(C)(3) during their waiting period of application. Now they have their own nonprofit standing. Can they file their taxes under their new Tax ID number --or must they file their taxes under mine.

When the new group obtained contributions using your ID, you were responsible for the use of the funds. You should be reporting the gifts and they should be reporting the receipt of the gifts which came "through" your organization on their own organizations' tax return. (See Ready Reference Page: "Charities Must Take Care in Serving as Conduits.") As a separate entity, they need to file their own return.

For more information on conduits/fiscal sponsorship we recommend the following:

Recorded Webinar: Fiscal Sponsorship: For the Funders, Sponsors and the Sponsored

Tuesday, July 3, 2007

Keywords:

conduits

Fiscal sponsor

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November Webinar

Fiscal Sponsorship: For the Funders, Sponsors and the Sponsored
Wednesday, November 20, 2024
1:30-3:00 PM ET

Fiscal sponsorship is a time-honored method to spawn new charitable activity when the people with the vision and the energy to do the work do not have recognition of federal tax-exempt status.

It can function smoothly as an incubator of important new projects. Or it can function badly as a serious trap for the unwary.

This webinar will define fiscal sponsorship and discuss the most common types of sponsorship arrangements. It will discuss the advantages and disadvantages of each type and the special considerations for funders, sponsors, and the sponsored. It will review specific critical provisions of sponsorship agreements, particularly termination and exit issues.

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* Updates on charitable solicitation registration issues.
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* Other interesting cases, including one holding that donor lists are not trade secrets subject to protection from use by a former fundraiser.

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How to account for funds received through conduit?

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How to account for funds received through conduit?

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