Why Partner with American Giving Charitable Trust?

• Save Thousands on State Registrations – Avoid annual multi-state charitable registration costs (approx. $11,000 per year) that most nonprofits face.

• Stay Below Audit Thresholds – Professional fundraising fees don’t appear as part of your revenue, helping you stay below certain state audit triggers.

• Avoid Costly Audit Fees – Skip the burden of annual audit costs that can run $14,000 or more per year.

• Legal & Compliance Covered – We handle all multi-state registrations, compliance filings, and IRS requirements so you can focus on your mission.

• Cleaner, Stronger Form 990 – No professional fundraising fees on your 990, making your efficiency ratios look better to donors, foundations, and grantmakers.

• Increase Grant Eligibility – A cleaner 990 and lower administrative overhead improve your chances of securing grant funding.

• More Money for Your Mission – By removing high fundraising firm fees (often 80–90%), a greater percentage of every donation goes directly to your programs.

• Faster & Easier Fundraising – Accept tax-deductible donations immediately without waiting months for independent 501(c)(3) approval.

• Built-In Administrative Support – Gain fiduciary oversight, financial management, and donor processing without having to build your own costly infrastructure.

Charities that smaller organizations can use to raise money are called fiscal sponsors. A fiscal sponsor is an established, tax-exempt 501(c)(3) nonprofit that lends its legal and administrative infrastructure to smaller projects or groups that lack their own tax-exempt status. 

This arrangement, known as fiscal sponsorship, allows a smaller project to accept tax-deductible donations immediately, even if it is still in the startup phase. The fiscal sponsor also provides fiduciary oversight, financial management, and other support services. 

How fiscal sponsorship works

• Process: The smaller charity or project enters a legal, contractual relationship with the fiscal sponsor, an existing 501(c)(3) organization.

• Donations: The larger sponsor receives and processes all charitable contributions on behalf of the smaller group.

• Control: The IRS requires that the fiscal sponsor maintains legal control and discretion over how the donated funds are used to ensure they are for charitable purposes.

• Fees: Fiscal sponsors typically charge an administrative fee, usually a percentage of the funds raised, to cover their services.

• Benefits: Fiscal sponsorship reduces administrative burden for the smaller group, enhances its credibility with donors, and is faster than applying for independent 501(c)(3) status.