We are a non-profit. You can do your fundraising through websites like GoFundMe and others but they are businesses. They cannot offer you tax-deductible donations, you have to have that yourself. And their fees or “tips” go to the business profits.
With Global Caring Alliance your donations are tax-deductible in the US, which gives your donors more incentive to help. And the same fee they charge goes to to support charities around the world through our foundation.
As your fiscal sponsor, Global Caring Alliance facilitates the solicitation and receipt of donations from within the U.S. and around the world. Our 501(c)(3) status allows your organization to apply for and receive grants and donations that are tax deductible.
What are the eligibility requirements for fiscal sponsorship at Global Caring Alliance?
There are three major eligibility requirements to become a fiscally sponsored project:
Mission Alignment
All projects fiscally sponsored by GCA must be aligned with our Vision, Mission and Approach.
Clear goals, resources, budget and objectives
We understand that you probably do not have the staff, material and resources right now to execute your project. Our goal is to help you fund, scale and have the impact you want. So like any new venture where you lack a resource you need to have a plan to get it. That is what we want to know and we will work with you to define and fill in those gaps.
Your project should plan to be with GCA for at least two years.
Legal fit
The law in the US requires that Global Caring Alliance’s Board of Directors has full governing authority, and full legal and fiduciary responsibility, for all fiscally sponsored projects, employees, and activities.
We don’t want to and will not run your organization, we just need to be sure the donations we are collecting on your behalf are being used for what they are intended.
To uphold GCA’s legal nonprofit status, to ensure all fiscally sponsored projects follow the IRS regulations, and to maintain compliance with the law, The GCA staff monitors the project’s finances, human resources, payroll, leases, contracts, and insurance.
We are very glad to host charities and NGO’s from around the world that align with our mission. However, the US Internal Revenue Service (IRS) has special requirements to protect US donors.
There are two options for an international charity to have direct funding from the United States Equivalency Determination or Expenditure Responsibility.
Sounds scary, but it is really simple.
Equivalency Determination
The funder, Fiscal Sponsor, must conduct an “equivalency determination” (ED) to show the U.S. government that the NGO is the equivalent of a U.S. public charity.
This review process can be done by the foundation or the lawyer of the nonprofit applying for the grant. The cost of using outside counsel for a single ED can range from US$5,000 to US$15,000.
Expenditure Responsibility
Expenditure responsibility, or ER, describes a set of monitoring and oversight procedures that a U.S. private foundation must follow when making grants to organizations that are not 501(c)(3) public charities or their foreign equivalents.
The purpose of ER is to ensure that the donated funds are used exclusively for charitable purposes. Also, to be sure that any charity does not use any of the funds to carry on propaganda, influence legislation, influence the outcome of any public elections, or carry on voter registration drives.
This responsibility falls to the Fiscal Sponsor or if you decide to do your own funding then you would have to meet these qualifications on your own. When working with us your responsibility is simply to understand what we need, have good accounting and spend the donations on the right things.
Read more here
The answer is yes but …
https://learning.candid.org/resources/knowledge-base/ngos-raising-funds-in-u-s/
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