FISCAL SPONSORSHIP
HERE TO ASSIST AS A FINANCIAL SPONSOR
Community Foundations are grantmaking public charities dedicated to improving the lives of people in a defined local geographic area. They bring together the financial resources of individuals, families, and businesses to support impactful nonprofits in their communities.
When a group is in the early stages of launching a program but is not yet ready to operate as a standalone nonprofit, the Broomfield Community Foundation can help.
As a well-established organization with sound financial management practices, we offer fiscal sponsorship as a way to support promising initiatives.
Our goal is to serve as a stepping stone—providing the infrastructure and support needed to help new programs access funding, build capacity, and grow.
As your program evolves and your leadership team strengthens, you may eventually obtain your own standalone nonprofit and/or 501(c)(3) status and operate independently of our support.
Below are answers to frequently asked questions about fiscal sponsorship and how we work with sponsored groups.
FREQUENTLY ASKED QUESTIONS
Why Would I Need a Fiscal Sponsor?
Explanation of Fiscal Sponsor for Donations
By partnering with the Broomfield Community Foundation (BCF) as your fiscal sponsor, your organization can tap into tax-deductible giving immediately—no need to register as a nonprofit in Colorado or wait for 501(c)(3) approval from the IRS. BCF will receive and acknowledge gifts on your behalf, handle all accounting and compliance requirements, and disburse funds according to your program goals and in compliance with IRS regulation.
Our streamlined sponsorship model allows you to focus on mission-driven work and relationship-building, while we manage IRS acknowledgments, financial reporting, and grant administration. To cover these essential services—and to ensure exceptional stewardship of every dollar—we retain a modest 5% administrative fee on donations.
Explanation of Fiscal Sponsor for Grant Funding
Many funders—including charitable foundations and government entities—can only award grants to organizations with 501(c)(3) status. If your group has not yet recieved 501(c)(3) status, the BCF can act as your fiscal sponsor, enabling you to apply for grant funding. Under this arrangement, we receive funds on your behalf, manage them in compliance with the funder’s requirements, and disburse them accordingly.
For these services, BCF generally retains a 10% administrative fee to cover accounting, compliance, and grant-management costs. Grants over $250,000 may qualify for a reduced fee, depending on the project’s scope and the funder’s terms.
Who Has The BCF Sponsored?
Over the years, the Broomfield Community Foundation has served as a fiscal sponsor for the following organizations:
- Broomfield Buddies
- Broomfield Housing Solutions Forum
- Broomfield Resettlement Task Force
- Daniel the Lion Fund
- EAR Foundation
For More Information
Thank you for your interest in partnering with the Broomfield Community Foundation. We are proud to support community-driven initiatives through fiscal sponsorship. If you have questions or would like to discuss your project, please contact us at info@broomfieldfoundation.org.
Additional Resource
Fiscal Sponsorship Explained via a Video by Propel Nonprofits: Fiscal Sponsorship: What and Why
