Fiscal Sponsorship FAQ

1.Who do you sponsor?

We’re looking to sponsor projects that share our values and are looking to innovate in the social justice sector, help close gaps in services and remove barriers to justice, equity, diversity, and inclusion. Anyone whose work and ethos matches this description is welcome to apply; we sponsor projects from all cause areas. 

We accept projects currently sponsored by other organizations.

Some of the causes we sponsor include:

  • Environmental

  • Arts and culture

  • Community-based services

  • Projects advancing ethics, accountability, and transparency

  • Racial justice organizations



2. Who do you NOT sponsor?

We will not consider projects that fall within these categories:

  • Organizations that already have 501c3 status or have started the process of getting 501c3 status 

  • Religious organizations, churches, or other faith-based projects that include conversion or missionary work

  • Projects whose mission is to raise awareness and only conduct lobbying work

  • Organizations whose services, mission, or other activities could be considered discriminatory

  • Projects with racist, sexist, or other discriminatory language, beliefs or affiliations

  • Projects that provide services that are not HIPAA compliant, or controversial within the medical or therapeutic community

  • Organizations or projects that require adherence to a particular religious faith or doctrine or require active participation in religious rituals

  • Organizations or projections that make claims or enact practices that privilege members of a particular religion or religious tradition, or discriminate against non-members of a particular religion or religious tradition

  • Organizations or projects that have as a primary purpose the advancement of prescribed belief or observance.

3. Who are we?
Our team founded Mockingbird Incubator in 2019 after years working in nonprofit consulting. We realized that small, grassroots, startup and early-stage organizations needed more help learning how to navigate nonprofit bureaucracies and how to build infrastructure that will help them create sustainable and impactful community work. There are a lot of rules for running a nonprofit that no one tells you about and we want to help our clients get oriented and stay in compliance with those rules. Nonprofit administration can be very complex, and we want you to know about the intricacies before you find out about them the hard way, like through the loss of a funding opportunity or having to pay a fine for a compliance issue. 


4. What is fiscal sponsorship?
Fiscal sponsorship is kind of like borrowing or renting an organization’s 501c3 status so you can accept charitable donations, apply for grants, and otherwise function like a nonprofit, but without holding that tax status yourself. While using a fiscal sponsor is a little outside of the box, it’s a really helpful way for small nonprofits to get started without all of the typical administrative hassle. Fiscal sponsorship isn’t for everyone, but when done correctly, it can help accelerate your nonprofit’s start-up experience, get you up and running quickly, and provide you with more support built into the process than you would have otherwise. Take our eligibility quiz to see if our fiscal sponsorship services might be a good fit for you.

5. What is the application process like?
We ask all applicants to fill out our application and submit detailed documentation of the services you plan to provide, including a strategic plan, fundraising plan, and other relevant information. Our board reviews applications on a monthly basis. Once they make a decision about whether we are able to fiscally sponsor your project we will let you know.


6. What are the fees for fiscal sponsorship?
We charge a flat 10% fee on all incoming funds each month or a minimum of $250 per month, whichever is greater. In exchange for this you receive the comprehensive support described in question 8 below. We require a $500 set-up fee.


7. What does the IRS say about fiscal sponsorship? 

Not a lot, there are a lot of technical rules for how the fiscal sponsorship is reported through IRS-form 990. Here is a good breakdown of some of the myths around fiscal sponsorship that might clear up your questions: https://www.fiscalsponsors.org/myths

8. What services are included in Fiscal Sponsorship with Mockingbird? 

  • Tax preparation of 990s

  • Bookkeeping/accounting

  • Payroll

  • Hiring paperwork

  • Contracts/MOU/Partnership documents

  • Referrals to ongoing legal and accounting support

  • Insurance: General liability, workers compensation, sexual assault, board and officers

  • Monthly office hours for questions

  • Monthly workshops on key nonprofit topics (i.e. marketing, SEO, grants, branding, financial statements)

  • Free inclusion in professional development, training, and other workshops hosted by Mockingbird Incubator and Mockingbird Analytics

  • One annual board training and orientation class taught by Incubator staff 

9. What are my responsibilities as a sponsored project? 

All responsibilities are listed in the Fiscal Sponsorship Program Manual. Some of the most important ones are listed below: 

  • Either be a graduate of the Mockingbird Incubator or join the next available cohort

  • Attend all monthly incubation workshops 

  • Operate within the mission and vision of the Mockingbird Incubator

  • Share programmatic and financial reports with Mockingbird

  • Acknowledge fiscal sponsorship by including the Mockingbird Incubator’s logo and URL on all materials, website, and social media

  • Communicate with the Mockingbird team about any important changes to your project, risks, or challenges you are facing

  • Abide by all fiscal sponsorship policies and procedures outlined in the Program Manual 


10. Where can I learn more about fiscal sponsorship?
We’re a member of the National Network of Fiscal Sponsors and they have some great educational materials. 


11. What is unique about Mockingbird Incubator’s fiscal sponsorship program?
Glad you asked. We like to think we’re a unique unicorn. We do in fact practice fiscal sponsorship a little bit differently than some organizations. Most importantly we view fiscal sponsorship as an extension of our initial incubation services through the Incubator Cohort program. This means that we include lots of materials, support, and education (similar to our incubator!) for our sponsored projects along with all of the standard services We’re also different because our fiscal sponsorship services are limited to two years. By the end of those two years we want you to have worked out the kinks, refined your services, have gotten all your questions answered, gathered all the resources you need, and be ready to transition to running your own 501c3. Think of fiscal sponsorship as some extra time in the nest for those who need it. With Mockingbird, you will receive all the standard perks of a fiscal sponsorship relationship with added handholding and services that enable you to be ready to run your own nonprofit. 


12 . When can my fiscal sponsorship start?
As soon as our board approves your application and you sign our sponsorship agreement. Generally this takes 30-60 days (which is 4 months shorter than the average time it takes to be granted 501c3 status by the IRS). 


13. When does fiscal sponsorship end?
After 2 years or earlier (if you decide your nonprofit is ready to become a standalone 501c3). Don’t worry, we’ll still be here to help you if you have any questions or need help with other services. 

14. Where are you located?
We are located in Los Angeles, California. Because of legal restrictions, we only sponsor projects whose primary work/location is in California. 

15. Why do you offer fiscal sponsorship?
Mostly because it’s a service that people need and we want to help members of our community get off the ground with more support. We’ve had a lot of people go through our Incubator program only to lose momentum once the program ended. With fiscal sponsorship we hope to keep that energy and momentum going for our incubator members with extended incubation support that removes some of the administrative barriers, shortens the timeline for getting started, and provides organizations with long-term assistance beyond our 6 week incubator program. 

CONTACT US

Questions? Email: info@mockingbirdincubator.org.