What’s in a Name? Grants, Sponsorship, and Fiscal Sponsorship

What’s in a Name? Grants, Sponsorship, and Fiscal Sponsorship Fundraising for projects is more of an art than a science in more ways than one—including the way people refer to the funds they’ve received or hope to receive. Becoming familiar with some basic terms will help you make sure you’re making the right request to the right person: “Restricted” vs. “Unrestricted”: Any kind of cash donated to a project is going to be one of these two things, and fortunately, they mean just what they sound like! Restricted gifts MUST be used for their intended purpose from the donor. If someone gives you $100 for supplies, you need to spend it on supplies and nothing else, even if you have a much greater need elsewhere. Unrestricted funds (or “general operating support”) don’t have that restriction, so you can spend it where you need it (though it still needs to be spent on the project in some way). When accepting a gift, you should always be clear with the donor as to whether it is restricted or unrestricted. Having a donation form can help with this! In-Kind Donation: An in-kind donation is a gift of tangible goods or services that the donor otherwise would charge for. Donors may request a receipt showing the value of their donation; if your organization is a 501c3 nonprofit, or has a fiscal sponsor, you can offer them a tax-deduction. Direct donations are some of the best ways to get what you need—much easier than trying to raise cash to buy something outright. Grant: A grant is a cash gift from a private foundation or government agency (like the Missouri Arts Council or Regional Arts Commission) expressly given...

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