What is fiscal sponsorship?
Fiscal sponsorship is an IRS mechanism allowing a newer organization (like CrowdSource Rescue), to gain 501c3 status underneath a more established 501c3 in a similar mission (like Outdoorsmen in Action). Consider it a parent organization, insofar as tax-deductible donations are concerned.
Since 2018, CrowdSource Rescue has been fiscally sponsored through Outdoorsmen in Action. As of April 2020, we are processing paperwork for our own 501c3 status.
Why get fiscally sponsored?
It allows a newer organization to spend the initial years focusing on mission, growing, and understanding it's own soul, while still enjoying all the benefits of 501c3 status.
Fiscal sponsorship was one of the best decision we ever made; it allowed us to quickly grow and focus on our mission, while having a more experienced eye handle our IRS status.
Why didn't CrowdSource Rescue apply for it's 501c3 before COVID-19?
First, we are applying for our full 501c3 status now (April 2020). In the meantime, all donations are still 100% tax deductible and go directly towards supporting CrowdSource Rescue's mission.
Second, the 2020 plan was to apply for our own 501c3 status in May 2020. As a disaster response organization, applying in May would have given us enough time to be a full 501c3, before responding to hurricane season. Due to COVID-19, we have started the paperwork now (April 2020).