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Fiscal Sponsorship
Program Description
How It Works
Eligibility Requirements
Download a Fiscal Sponsorship Program Application and Guidelines
(PDF file)
Are you currently seeking funding for your film production? If so, Third
World Newsreel can provide you some of the benefits of tax-exempt status. Read below
to learn about our Fiscal Sponsorship program and how tax-exempt status can facilitate
fund raising efforts.
In accordance with its mission, TWN serves as a fiscal sponsor of independent film
and electronic media productions, as well as artistic, educational and cultural
projects emphasizing the issues of people, groups, and nations outside of the economic
mainstream.
Camera News, Inc. dba Third World Newsreel (TWN) is a non-profit organization as
determined by the IRS under code 501(c)3. It is also a registered New York State
Charity. Under the TWN Fiscal Sponsorship program, TWN acts as an umbrella agency
for your project, allowing the project to share some of the benefits of non-profit
status that include:
- Tax deductible donations to your project from individuals and other entities that
may be able to benefit from the tax deduction.
- Eligibility for funding from entities, such as foundations, government agencies,
and other parties that may only provide grants and funding to non-profit entities.
As a project’s umbrella agency, TWN is the recipient of any funds donated or granted
to the project. TWN maintains the funds in an account for the project. Account funds
are disbursed to the project representative for the payment of legitimate project
related expenses and services. As such, TWN is responsible for ensuring that funds
are used for project purposes and used in accordance with donors’ and grantees’
intent. This arrangement with TWN can be as sole recipient of all project donations
and grant funds or as recipient of only the funds associated with a specific grant.
In either case, TWN will issue the necessary project related 1099’s in accordance
with IRS guidelines.
If TWN is to be sole recipient of all project funds, then TWN is the exclusive agent
for receiving and disbursing project related funds. In this arrangement, the project’s
representative is responsible to account for expenditures by providing TWN receipts
evidencing payment for project goods and services. TWN will also provide the service
of letters of thanks and acknowledgment to donors, ensure project representatives
complete any required donation or grant related reports, and issue any required
1099’s to the project’s independent contractors and the project representative.
The Fiscal Sponsorship program does not provide any fund raising services, grant
application services, or distribution services. Nor does acceptance into the Fiscal
Sponsorship include TWN distribution of the finished product. TWN distribution requires
a separate application, review, and approval. TWN does not have any ownership or
rights in the production at any time, nor is TWN responsible for project content.
The project’s producers and/or directors are responsible for the content.
TWN charges an administrative fee of 5% of the project income (donations and grants)
and 7% of grant amounts received from National Endowment for the Humanities and
State Humanities Council grants. These amounts cover the expenses of TWN’s services
to maintain an accounting of donations and grants, send acknowledgment letters to
donors and grantees, reconcile project receipts with project cash disbursements,
generate and file IRS 1099 forms, and other services TWN must perform as the umbrella
agency for the project.
There is a $25 application fee for each project submitted for consideration for
TWN Fiscal Sponsorship. This fee is waived for NYSCA individual artist applicants
pending funding. Additional fees will be charged to individual projects for specific
services such as messengers, mailings, cash advances, etc. Fees charged against
contributed income are based on a uniform sliding scale.
You can download an application for Fiscal Sponsorship in Adobe PDF format. Requests
for applications via US mail should be directed to:
Fiscal Sponsorship Program
Third World Newsreel
545 8th Avenue Floor 10
New York, New York 10018
Applications are usually processed within ten (10) business days. Upon approval
of the project and payment of the application fee, the project representative will
be mailed a formal contract for execution and return to TWN. Questions about the
program and application status should be directed to the
Fiscal Sponsorship Officer at fiscal_sponsorship@twn.org.
The brief overview below will give an understanding of how the fiscal sponsorship
program operates. This overview is not all inclusive, abbreviating the process and
omitting some other steps or requirements that may be part of the process.
- Upon acceptance into the program, TWN and the project representative sign a contract,
establishing a contractual relationship for the project. TWN sets up an account
for the project.
- The project representative and associated parties continue their own fund raising
and application for grant funds. TWN does not do any fund raising or grant applications
on behalf of the project.
- As funds are received from donors and from grants, they are paid to TWN on behalf
of the project. TWN maintains the funds in an account. TWN sends out letters to
donors, with copies to the project representative, acknowledging their contributions.
TWN also makes a record of any reports the donors and grantees require and the due
dates for the reports. TWN is not responsible for preparing and sending the reports
to donors or to grantees. That is the project representative’s responsibility. The
project representative is responsible for providing TWN the dates reporting requirements
have been fulfilled. Failure to meet a reporting requirement can cause funds from
the connected contributor to be withheld pending completion of requirements to the
contributor’s satisfaction.
- As the project director incurs expenses or has needs for funds to purchase project
related goods and services, the project director requests that TWN release specific
amounts of funds to the project director. TWN releases the funds to the project
director in a check made payable to the project director. TWN does not pay any vendors,
contractors, or other parties for goods and services. It is the project director’s
responsibility to pay for goods and services using the funds TWN releases to the
project representative.
- Periodically, the project representative accounts for the expenditure of released
funds by submitting receipts documenting project expenditures. Generally, TWN will
not release additional funds for the project until all prior released funds have
been accounted for with receipts. If any of the services involve independent contractors,
the project representative provides TWN with the names, addresses, and Social Security
Numbers of the independent contractors for tax reporting purposes.
- At the end of each calendar year, TWN issues IRS 1099 forms to any independent contractors
paid for project related services during the year. If the project representative
has not accounted for all funds released during the year with receipts, then the
amount above the total of receipts is considered to be income to the project representative,
and TWN also issues an IRS 1099 to the project director.
- The project must be a documentary or fictional work about issues, people, countries,
or groups that society treats or perceives as being outside of the economic mainstream.
- The project must be a non-commercial film, video, or multimedia work.
- The project representative payee (the person responsible to receive funds and pay
expenses) must be a U.S. citizen with a tax identification number (Social Security
Number or Federal Employee ID number).
- The project cannot promote any racism, sexism, or hate toward any person or group
of people.
- The project representative must demonstrate, through the TWN Fiscal Sponsorship
application, an ability to raise project funds and produce a work through completion.
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