•  
  •  
 

DOI

10.9707/1944-5660.1744

Key Points

This study explores barriers to funding fiscal sponsorship based on interviews with 68 leaders of sponsors and sponsored projects. Findings reveal that funders’ limited understanding and restrictive policies contribute to negative sentiment and reduced grant access for sponsored initiatives.

Despite fiscal sponsorship’s administrative efficiencies and mission-focused benefits, funders often perceive sponsored projects as less legitimate, misunderstand sponsor roles, and resist covering sponsor cost allocations when framed as fees. Structural complexities — such as shared EINs and geographic mismatches — further impede eligibility for funding.

This article concludes with actionable recommendations for funders and sponsors, including staff education, updated grant guidelines, and voluntary transparency enhancements. By addressing these barriers, funders can better support a growing segment of the nonprofit sector and help realize the potential of fiscal sponsorship as a tool for innovation, equity, and impact.

Share

COinS