Partner Artists: Fiscal Sponsorship
Fiscal Sponsorship, sometimes known as a "non-profit umbrella," can be a tricky thing. Below we'll try to outline the basics of how it works here at The Shunpike, to give you a better idea of what it means to be an "Associated Program."
First, a little bit about taxes...
All corporations in America - even non-profits - pay taxes: on income, on wages, on expenses. However, by applying with the IRS under Section 501(c)3 of the tax code, certain non-profit corporations may qualify for an exemption from certain taxes. Basically, this is the Government's way of saying, "your organization does something beneficial to society that we support -- but can't do ourselves -- so we'd like to cut you some slack in terms of tax burden." The U.S. Congress, in other words, is giving up tax revenue because it believes so strongly in what these tax-exempt organizations are doing to help our society.
Now, when Congress voluntarily refuses to accept tax dollars, it must be important. And being a tax-exempt non-profit is indeed an important responsibility. We must be accountable to our community for our actions. We must provide a needed community service. The Shunpike takes its status as community servants very seriously, and we expect all our Partner Artists to do the same.
Associated Programs
All non-profits have programs. Programs are how we serve our community. The Red Cross's CPR training classes are an example of a non-profit program. The Shunpike's programs are: Accountability and the Arts, Sustainable Organizations, and Partner Artists. By partnering with us, our Partner Artists play a vital role in serving The Shunpike's mission to strengthen the Seattle arts community.
When an artist or company decides to pursue fiscal sponsorship with The Shunpike, they become an associated program. They are now part and parcel of The Shunpike, and therefore entitled to all our tax-exempt benefits and other resources.