Many organizations active in New Orleans are not 501(c)(3) tax-exempt nonprofits. Some are in the process of applying, and some are simply not interested. It is still possible for these organizations to apply for the same grants as nonprofits. To do this, the organization partners with an existing 501(c)(3), this organization is called the fiscal agent. This is a service that NPN provides to Basic Level members.
Having a fiscal agent allows small organizations to apply for the same grants as other organizations without the burden of applying for 501(c)(3) status and administrative costs of maintaining a nonprofit staff.
Many nonprofits are willing to act as a fiscal agent for organizations that are in the process of applying for 501(c)(3) status, or who are not interested. Here's how it works: If your organization is interested in a grant, you send in the proposal to the foundation or donor and identify your fiscal agent, providing all the necessary documentation. A contract is written between your group and the fiscal agent, and goes into effect when the grant money is released by the donor. The fiscal agent is responsible for giving the money to your organization in a timely manner, maintaining the needed documentation for the donor, and ensuring the grant money is used in the way it was intended. Your organization is responsible for implementing the project described in the grant, and giving regular reports to the fiscal agent. Fiscal agents often charge a small administrative fee to cover the expense of managing the grant.
If you are interested in learning more about how NPN can act as the fiscal agent for your organization, contact Timolynn Sams Sumter at timolynn@npnnola.com.