Nearly 40 New York nonprofit leaders attended a recent free capacity building workshop on fiscal sponsorship for emerging nonprofits led by expert pro bono attorneys from Weil, Gotshal & Manges LLP.

Weil, Gotshal & Manges LLP attorneys Mark Hoenig, Partner and Emily Cusick, Associate explained the definition of fiscal sponsorship and how it works, reasons organizations decide to use a fiscal sponsor, types of sponsorship and their benefits as well as risks, and resources on existing fiscal sponsor organizations.

As attorneys who have offered legal advice to numerous nonprofits, they both agreed that “the [nonprofit formation] process itself is costly and, in some cases, can be a little bit daunting.”

While explaining the beneficial relationship between fiscal sponsors and new projects, Mr. Hoenig suggested that “many aspects factor into selecting a fiscal sponsor, including grant approval rate, industry reputation, and mainly, the fit among the project, funder, and fiscal sponsor.”

From this workshop, participants walked away  understanding how fiscal sponsorship can serve as a viable alternative to creating a 501(c)(3) organization, recognizing that fiscal sponsorship can be a helpful stepping stone for organizations waiting to establish their own 501(c)(3) status, and learning more about the legal nuances and details of fiscal sponsorship.

The workshop was co-sponsored by NYLPI and Foundation Center New York, our longstanding capacity building partner.

Our upcoming workshop on February 13^th on Nonprofit Incorporation and Tax Exemption will spell out the process for incorporating a nonprofit entity and obtaining tax-exempt status. If you’re interested in attending, register here.

Nonprofit leaders can register for our capacity building trainings and apply for pro bono legal assistance through NYLPI’s Pro Bono Clearinghouse. If you’re a nonprofit and interested in learning more, click here. To check out other upcoming events click here.