The Providence Dog Park Association is pleased to announce that Community Canines for Companionship and Care [a 501(c)3] has become our “fiscal sponsor”. That means that when you donate to PDPA, your donation will be FULLY TAX DEDUCTIBLE!
-->How is that possible? What is a “501(c)3”? What is a “fiscal sponsor”? Read on!
The PDPA is a small grassroots organization, and we have NO money or income source whatsoever. Everything so far has been on a volunteer basis, but now that we need to help pay for the dog park fencing, we need to start collecting funds. In order to provide donors with a tax deduction, we would have had to become a 501(c)3. This is the tax determination given to a non-profit charitable organization at the federal level. It would have required money, a Board of Directors, insurance for the Board in addition to several other fees. We simply did not have the funds. In addition, were are not sure whether or not our fundraising goals are temporary (will we raise money for one dog park?) or if we will stick around for a while (help fund other dog parks? ).
Fiscal sponsorship was the answer to our problem. Defined, fiscal sponsorship is a legal means whereby donors can make tax-deductible contributions to individuals or organizations that are themselves not tax exempt. It is a perfect solution for projects which are catalyzed by an individual or sponsored by a neighborhood organization, and are too small or too new to have their charitable status recognized by the IRS. Projects (which, at this point, applies to PDPA) which are temporary in nature may also be ideal candidates for fiscal sponsorship, because this allows the project to focus on achieving its goals rather than spending funds and energy on administrative issues and other costs.
All we had to do was find a fiscal sponsor, an existing 501(c)3 which shares similar interests and goals. That is where Community Canines for Companionship & Care (4Cs) comes into the picture. (Click here to find out more about our sponsor and what they are all about!)
In our fiscal sponsorship relationship, 4Cs extends its charitable “umbrella” over our group. They will provide fiscal services such as:
• Filing federal, state and local tax & informational returns
• Receipt and acknowledgment of tax-deductible donations and grants
• Monthly financial statements
• Financial record keeping
• Independent Audit
• Check processing and issuance for expenses, I-9s, 1099s
• Directors' & Officers Insurance for Advisory Board members
In return for their services, we will pay them a percentage of our earnings based on this formula:
Amount Raised by PDPA % Fee paid to 4Cs
$0 up to $1000 0
$1001 up to $10,000 5
$10,001 up to $25,000 7
$25,001 up to $50,000 8
$ over $50,000 9
-->What happens to your donation?? Does it go to PDPA??
You bet it does, but first, it has to go to 4Cs. You will make your checks out to “Community Canines” with a notation that the donation is for PDPA. This allows you, the donor, to receive your tax deduction. 4Cs will then place the donations in a special restricted fund dedicated only to support PDPA. When we have sufficient funds in our account, 4Cs will write us a check.
Fiscal Sponsorship is becoming a popular option for small, fledgling groups who are not ready to commit and pay to becoming a 501(c)3. For the time being, this is a perfect solution for us and for our donors. We couldn't have managed it without our friends at Community Canines!
--> To learn more about fiscal sponsorship, go to your preferred search engine and type in “fiscal sponsorship”. You will find several examples and explanations.
--> Ready to donate?? Here is all you have to do:
1. Make out your check to 4Cs. Be sure to write “For PDPA ” in the “memo” section of your check. That way, 4Cs will know that the donation goes to the dog park.
2. Address your envelope to:
Providence Dog Park Association
POB # # 603106
Providence RI 02906
3. PDPA's treasurer will make a copy of your check and enter the amount into our own books.
4. PDPA's treasurer will give the check to 4Cs, They will cash it and deposit it into their account. They will keep a separate record of PDPA's donations (Both groups keep records of PDPA's funds so we can cross check and be sure the accounting is correct.)
5. 4Cs will keep PDPA's funds until we request them. At that time, 4Cs will turn over our funds to us in the form of a check.
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