Scaling Our Impact Through Fiscal Sponsorship

The Challenge

Africa-based nonprofit initiatives often struggle to secure funding due to a lack of formal structures and back-office capabilities, while donors and foundations avoid direct support citing high risk and administrative challenges. 

This creates a bottleneck that leaves these local initiatives underfunded despite their proximity to community issues and solutions.

Our Solution

Through our fiscal sponsorship program, we provide the financial and operational
infrastructure that donors, foundations, and NGOs need, so they can focus on their missions.
Though our roots are in health, we have expanded our fiscal sponsorship program to
accommodate projects in other impact sectors, including education, livelihoods, climate &
environment, gender, economic empowerment, WASH, and nutrition.

African-Led & Locally Rooted

We have a deep understanding of the regional landscape. We are headquartered in Nairobi, Kenya and have worked in 16 countries across the continent.

Dual Registration

We are registered as a 501(c)(3) charity in the USA and as an NGO in Kenya with an Equivalency Determination, ensuring both global and local compliance.

Flexible and competitive fees

Our revenue model balances donor affordability with long-term sustainability for sponsored programs to drive impact. Our fees are more cost-effective than international fiscal sponsors.

Simplified Compliance

We have a proven track record in governance and compliance. We manage funding, reporting, and compliance, reducing administrative burdens for both donors and recipients.

Efficient Fund Disbursement

Rapid, compliant, and well-tracked financial disbursements distribution. (Low transaction costs, lower staff/admin costs for donors).

Capacity Building

Beyond fund management, we equip organizations with financial and operational skills.

Our Service Offerings

How we collaborate with Donors and Foundations

We make it simple and low-risk for you to fund promising African initiatives directly

How we partner with Donor Collaboratives

We provide the financial and compliance infrastructure so you can pool capital efficiently and disburse it faster to local organizations.

How we collaborate with NGOs

We handle your back-office operations, grant management, and capacity building, while also giving you instant access to 501(c)(3) status. This frees you to focus entirely on scaling your impact on the ground.

How we collaborate with Philanthropic and Nonprofit Advisors

We act as a reliable fiscal sponsor partner you can confidently recommend to your clients seeking efficient ways to fund Africa-led work.

How we collaborate with Corporations

We help you deploy your CSR and sustainability grants directly to vetted and credible local organizations with full compliance and transparent reporting.

Learn More

Fiscally Sponsored Projects

Sectors We Support

Health
Education
Environment
Climate and Sustainability
Nutrition
Water, Sanitation, and Hygiene (WASH)
Gender & Youth
Economic Empowerment

Interested? Reach Out to Us

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FAQs On Fiscal Sponsorship

What is Fiscal Sponsorship?

What is Fiscal Sponsorship?

Fiscal Sponsorship is a legal and financial arrangement where a 501(c)(3) public charity, known as the fiscal sponsor, lends its tax-exempt status to a nonprofit, group or initiative (known as project) that does not have its own. This enables the sponsored project to solicit and receive grants and tax-deductible donations. The fiscal sponsor also manages the administrative, financial, and legal responsibilities that come with the donated funds.

What are the benefits of using a fiscal sponsor?

Using a fiscal sponsor allows a project to start fundraising right away without the time and costs associated with applying for its own 501(c)(3) status. It gives access to the fiscal sponsor's established financial management and administrative systems. Also, the fiscal sponsor’s credibility with donors and foundations often makes it easier for projects to get funding. For projects that have already secured funding or have funding commitments, fiscal sponsorship makes it possible to immediately move into program implementation while ensuring all financial activities are fully compliant and tax-deductible.

How is Fiscal Sponsorship different from registering my own non-profit entity?

Registering your own non-profit requires a lengthy, expensive, and complex process. This includes legal incorporation and an extensive application for 501(c)(3) tax-exempt status with the IRS, which can take many months. Fiscal sponsorship allows you to avoid this waiting period and administrative hassle. You can begin raising funds, implementing programs, and accepting tax-deductible donations immediately while operating under the fiscal sponsor’s existing tax-exempt registration. It provides the advantages of non-profit status without the significant overhead costs and legal responsibilities of establishing and managing a separate registered organization.

Who is eligible for Fiscal Sponsorship?

Any project with a charitable purpose can receive fiscal sponsorship. This includes various activities, such as health initiatives, arts projects, educational programs, community initiatives, and scientific research, as long as they fit with the fiscal sponsor's mission and the IRS definition of a tax-exempt activity. Fiscal sponsorship is also available to registered nonprofits that are waiting for their own 501(c)(3) determination from the IRS and those that need to raise money from donors who only give to established public charities.

How does a Fiscal Sponsorship arrangement work?

There are several legal models in fiscal sponsorship. The first, known as Model A (Direct Project Sponsorship), is the most common. In this model, the sponsored project becomes an internal program of the fiscal sponsor. The second, less common model, is Model C (Pre-Approved Grant Relationship), where the fiscal sponsor accepts donations on behalf of a project and then makes a grant to it while the project remains a separate legal entity. It is mostly suitable for nonprofits that have their own legal registration. In a customized model, the Fiscal Sponsor offers value-added technical, administrative, and strategic services to the project. This can include grant strategy support, capacity building, and access to networks. The Fiscal Sponsor chooses the model that best suits the project's maturity and specific needs. This ensures the project gets the right mix of compliance and strategic support.

Can a sponsored project apply for grants from foundations and donors?

Yes. Fiscal sponsorship allows sponsored projects to apply for grants from foundations and donors without needing their own 501(c)(3) status. The grant application is submitted under the fiscal sponsor's name and tax ID, making the fiscal sponsor legally responsible for all grant reporting and compliance.

How are donations handled?

All donations are made to the fiscal sponsor, which keeps the funds in a designated account for the project. The fiscal sponsor issues a tax-deductible receipt to the donor. The sponsored project can access the funds for its approved charitable activities, usually through an expense request or reimbursement process managed by the fiscal sponsor.

Who handles the administrative, financial reporting, and donor relation requirements in fiscal sponsorship?

This depends on the fiscal sponsorship model the project uses. For projects under Model A fiscal sponsorship, the fiscal sponsor is legally responsible for all administrative, financial, and donor-related functions, including bookkeeping, tax filing, and issuing donor receipts. However, the project director and team maintain control over the project's daily operations and programming.

How does he Fiscal Sponsor recover its costs?

Fiscal sponsors usually charge an administrative fee based on a percentage of the funds they receive for a project. This fee covers the costs of providing financial management, legal oversight, and other administrative services. The range is between 10-15% of all funds raised; depending on the fiscal sponsorship model and the range of services offered

What types of projects does the Financing Alliance for Health (FAH) fiscally sponsor?

We sponsor projects that support our mission to strengthen the health sector in Africa. This includes initiatives focused on empowering community health workers, improving health literacy, digital health, and delivering primary healthcare. Projects should have a clear mission, a defined plan, and a dedicated team.

Why Choose FAH?

The Financing Alliance for Health is a leading global organization that is dedicated to strengthening health systems and improving health outcomes across Africa. Our unique value proposition in fiscal sponsorship at FAH centers on providing a supportive ecosystem for innovative and high-impact projects, built on deep sector expertise and a robust network. We are African-led and locally rooted, with a dual 501(c)(3) registration in the United States of America. By becoming our fiscally sponsored project, you get the best of both worlds: the ability to attract and manage tax-deductible donations from global funders and the confidence that your project complies with local regulations. We take care of the complexities of both global and local financial and legal requirements, so your project runs smoothly.

Do I lose control of my project?

No. You have complete control over the program and the creative aspects of your project. As your fiscal sponsor, we take care of the financial, legal, and administrative tasks. This lets you focus entirely on your main mission and on carrying out your work.

What are my responsibilities as a fiscally sponsored project?

Your main duties are to focus on your mission, manage your programs well, and give us timely updates and reports on your work. This includes sharing required financial documents and submitting grant reports on schedule.

Can I be located outside of Africa to apply for fiscal sponsorship?

Yes. Our mission focuses on improving the health sector in Africa. However, we welcome applications from innovative projects worldwide that are dedicated to working in the region. The organization must have at least 70% of its work implemented in Africa.

How can a project apply for fiscal sponsorship with FAH?

The process starts with filling out our online inquiry form below. After we review your initial submission, we might schedule a short introductory call to understand your vision and mission better. If it looks like a good fit, we will ask for a complete proposal and budget for a formal review.
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