A fiscal sponsor is any non-profit, tax-exempt 501(c)3 organization, or other tax exempt entity such as school or unit of government, that agrees to provide fiduciary oversight, financial management, and sometimes other administrative services to help build the capacity of groups engaged in activities related to the fiscal sponsor organization’s mission. To be eligible for our grant funds, an applicant’s fiscal sponsor must be located in, as determined by the address used for payment of taxes, the state of Minnesota. The fiscal sponsor will receive and distribute the grant award. The fiscal sponsor is legally responsible for the completion of the project and for the proper management of the grant funds. The fiscal sponsor is also responsible for verifying that the Final Report is accurate.
The applicant organization must have a written contract with the fiscal sponsor that specifies the responsibilities of each party. This contract must be submitted as part of the grant application package. R2AC has a sample contract for a fiscal sponsor you may use and will provide a printed copy upon request if you visit our office. The fiscal sponsor must sign the grant application form and, if a grant is received, sign the grant contract and review and sign the final report.