How the fiscal sponsorship works

Jewcer is a unique type of crowdfunding platform. We are a nonprofit organization and the crowdfunding platform is part of satisfying our mission to help initiatives that strengthen the Jewish community raise the funds they need to be able to do more. As such, we are also able to fiscally sponsor campaigns.

What is fiscal sponsorship?

Fiscal sponsorship is a relationship between a nonprofit organization (the sponsor) and a group or project (the sponsored entity) that allows the sponsored entity to benefit from the sponsor’s 501(c)(3) tax-exempt status. The sponsor accepts tax-deductible donations and grants on behalf of the sponsored entity, and may also provide administrative benefits. In return, the sponsor often charges a fee, such as a percentage of the project’s revenue, and may retain some control over the sponsored entity.

What does it mean to be fiscally sponsored by Jewcer?

From a legal point of view, being fiscally sponsored by our organization means that we use the nonprofit status of our organization for your project/campaign. From a practical point of view, being fiscally sponsored means that donations would come to us (we collect the funds for your campaign) and at the end of the campaign, we will send you the funds (minus all the fees) in one transfer (or check). From a legal point of view, the donors donate to Jewcer and earmark it to your campaign/project.

Please note that contrary to other fiscal sponsors you might have contacted, our fiscal sponsorship is based around your campaign. That is, in the typical way, you run a campaign and when you request to close the campaign, you also request the funds you raised (technically, you can leave your campaign page open indefinitely).

Who do we fiscally sponsor?

The answer is a spectrum that has to do with risk. Funds that are donated and deemed “charitable” (aka “tax deductible”) reduce taxes from the IRS, as such, they need to be for purposes that the IRS deemed eligible. The risk is referred to the chances that the funds will end up being used for something other than what it was intended for.

We always sponsor:

• Other established nonprofits in the USA, Israel

We often sponsor:

• Groups that prove to us that they are in the process to become an established nonprofit
• Groups that are publicly doing charitable activities that benefit large groups of people and communities
• Individuals that are publicly doing charitable activities that benefit large groups of people and communities
• Individuals that publish art and media works that benefit the community (for example, a movie or art installation).

We rarely sponsor:

• Groups or individuals who are doing charitable work that benefit individuals

We never sponsor:

• Individuals who raise money for personal expenses

Are there costs associated with the fiscal sponsorship?

If you raise over $5,000 in your campaign, there are no extra costs beyond the usual Jewcer platform fees (https://www.jewcer.org/help/what-fees-are-involved-in-running-a-campaign-on-jewcer/). If you raise less than $5,000, there is a $250 fiscal sponsorship fee that gets deducted from the funds you raise.

Can we receive the funds during our campaign without closing it?

Yes. We charge $250 per disbursement to cover our legal and accounting fees that are involved with each extra disbursement.

Can we get fiscally sponsored without a campaign?

Yes. We often fiscally sponsor organizations (in Israel) that have a large donor in the USA who wishes to donate to a local (in the USA) organization. Reach out to us by email to discuss if that is your case.

Do I have to be in the USA to be fiscally sponsored?

No. We fiscally sponsor all around the world. The tax deduction however, applies only to US donors.

Is there an application process?

Yes, it is part of building your campaign page. The forms are all in your campaign building section in your Jewcer account when you choose how you want the funds to be collected. If you choose “Jewcer to collect your funds”, that is fiscal sponsorship.

Do the donors get a tax deduction?

The donors get a tax deduction in the USA. When they donate, they automatically get the tax deduction receipt through email from us (as mentioned above, technically and legally, they are donating to Jewcer, so the receipt is from us).

Do I get the information of the donors?

Yes. We only require an email address, but also ask for name and full physical address. If the donor provides those, then you also get that. All the information is downloadable for you from your Jewcer account throughout your campaign.

How long does it take to get the funds after my campaign is over?

Once you tell us that you are done (note, the campaign can continue going after the deadline), we will send you a summary of your donations (you can also download it at any time during the campaign). Once you approve it, it takes about 7-10 business days to receive the funds.

How do I receive the funds at the end of the campaign?

We typically wire the funds (anywhere in the world), or, if you are in the USA, we can also send a check. You will fill out a transfer request where you will provide all the information.