A fiscal sponsorship is an arrangement in which a 501(c)(3) nonprofit organization (the “fiscal sponsor”) offers its legal and tax-exempt status to another group for a project or an activity related to the work of the nonprofit organization (the fiscal sponsor).
The fiscal sponsor is the tax-exempt organization that agrees to share its tax-exempt status with another group for a specific project, grant or event. Typically this is because the other, sponsored group is not incorporated with its own tax-exempt status, or it could be that the organization has agreed to outsource certain administrative functions. Each relationship is unique.
A number of the groups that Patagonia funds are sponsored by tax-exempt fiscal sponsor organizations.
Donations to any US organization on Patagonia Action Works are made to a donor advised fund at Network for Good, Inc. (NFG), a Delaware nonprofit corporation and a Section (501)(c)(3) tax-exempt organization (EIN: 68-0480736). 100% of your contribution is tax-deductible to the extent otherwise allowed by law. Network for Good then grants the funds to the fiscal sponsor. The individual fiscal sponsor is responsible for regranting the unrestricted funds from NFG to the fiscally sponsored organization listed.