American Independent Business Alliance

Fiscal Sponsorship

AMIBA provides the fiscal sponsorship of contributions for organizations or projects which advance public education about the importance of entrepreneurism, community-based business ands sustainable local economies. This means your local organization can receive foundation grants and individual gifts for educational activities which the donors wish to be tax-deductible, by using AMIBA’s 501(c)(3) charitable status.

Unless your group plans to raise a large portion of your budget through foundation grants and individual (non-business) gifts, this program will save you time and money over establishing your own 501c3 organization while avoiding associated risks.

How it works: Through this program, AMIBA accepts institutional grants and tax-deductible contributions from donors who wish to support the educational work of our sponsored organizations and projects. AMIBA then disseminates funds to the sponsored projects after deducting a 10% administrative fee (reduced to 5% for AMIBA affiliates). Sponsored organizations do their own fundraising from individuals and/or foundations. Donors and institutions who wish their contributions to be tax-deductible make them payable to AMIBA, preferably with a notation on the memo line referring to the sponsored organization (ex: FBO Boston IBA).

Contributions administered through AMIBA must be used for purposes which are legal, legitimate and in accordance with our mission. AMIBA sends acknowledgements directly to the donors. Sponsored organization will supply AMIBA with the name, address and any other donor information to ensure timely acknowledgment.

Since your organization is not recognized as “charitable” by the IRS, funds received for the benefit of your organization from individual donors will be acknowledged to your organization as restricted grants by AMIBA, as they will need to be put toward the purpose you indicated when you requested their release from us.

For your accounting purposes: since, technically, the funds are donations or grants to AMIBA for your group’s benefit — and AMIBA provides the donors with the tax deduction — AMIBA reports the funds we receive on your behalf on our 990.  You report only the funds you actually receive from your account. For example: if you have $10,000 in your account and you request $1000 for graphics work for your new public education campaign, you will report just the $1000.

Sponsored organization must submit to AMIBA a description of the purpose for released funds as a request, either by mail or email.  Once the purpose for the request is deemed by AMIBA staff to be within the parameters of section 501(c)(3) of the Internal Revenue Code, funds will be released. AMIBA may request a more detailed funding proposal if the nature of the proposed project appears to demand one.

AMIBA will remit funds:

  1. to sponsored organization as reimbursement for expended monies only with submitted receipts or by mailed or emailed justification; or
  2. to vendors of goods or services, or other recipient by prior arrangement with AMIBA. Please note AMIBA will not pay contractors directly (e.g. pay for a director on contract, others engaged in contract work for your organization). We will remit payment to your organization for you to pay the contractor. You will be responsible for providing any IRS form 1099 MISC to contractors.

Additional Guidelines:

  • AMIBA will provide sponsorship for organizations which are not incorporated as a project of AMIBA. However, the organization requesting sponsorship must have its own bank account; we cannot issue checks to individuals.
  • AMIBA does not sponsor academic or research projects; individuals; or groups primarily engaged in lobbying, electoral politics or litigation.
  • AMIBA sponsors funds on long-term, short-term or a one-time basis for specific projects. Non-affiliated groups wishing to maintain an ongoing sponsorship with AMIBA must present a written request for sponsorship renewal each calendar year.
  • Should the sponsored organization receive 501(c)(3) designation during the time of the sponsorship arrangement, sponsored organization may submit a copy of its designation letter along with a written request for release of remaining funds held in escrow by AMIBA. Equally, should the sponsored organization cease to exist while AMIBA holds funds in escrow, the funds revert to AMIBA for its purposes, unless expressly prohibited by a granting organization.
  • AMIBA may request copies of materials produced with sponsored funds and a brief narrative report on the project upon project completion. AMIBA reserves the right to utilize materials produced or disseminate results of projects in its public education efforts, unless the nature of the project dictates otherwise.
  • No limit exists on the amount of contributions that may be accepted for sponsored groups.

If you have questions, please feel free to contact us.

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