COLab as your Model C project-based fiscal sponsor

The Colorado News Collaborative (COLab) serves as a fiscal sponsor for some of its partners. Fiscal sponsorship is a contractual relationship that allows a for-profit entity to enact a project or program under the umbrella of a 501(c)(3) nonprofit, and raise philanthropic funds for projects aligned with that nonprofit’s mission.

COLab operates under a project-based, Model C fiscal sponsorship for select journalism-related projects for Colorado organizations that demonstrate genuine charitable or educational intent in line with COLab’s mission: to provide original journalistic reporting for the general public in Colorado for the purposes of educating and informing the public on various issues.

To cover the administrative, legal, financial and other overhead expenses incurred by COLab in connection with the fiscal sponsorship, COLab charges a flat administrative fee of $250 at the start of the fiscal sponsorship relationship.

In addition to the flat administrative fee, COLab charges a percentage-based administrative fee, based on the amount received during the life of the fiscal sponsorship by COLab on behalf of the project. The details of the percentage-based fee are as follows:

• 0% (zero percent) of the first $5,000 of funds received during the life of the fiscal sponsorship
• 5% (five percent) of any and all funds between $5,000 and $50,000 received during the life of the fiscal sponsorship
• 3% (three percent) of any and all funds at or above $50,000 received during the life of the fiscal sponsorship

These fees cover costs incurred by COLab as a fiscal sponsor, including accounting, processing donations, providing donation acknowledgment, administering the fund and ensuring legal compliance.

Fiscally sponsored partners producing original content will be required to show proof of active media liability insurance before COLab will release any funds raised on behalf of the fiscally sponsored project.

As part of our fiscal sponsorship program, sponsored projects receive the following services and benefits:

• The ability to solicit and receive tax-deductible donations.
• The ability to apply for and receive grants from organizations that will only give to nonprofits or to for-profit organizations with a fiscal sponsor.
• A custom fundraiser on the Colorado Gives platform. View custom fundraisers here for some of COLab’s current sponsored projects.
• Use of the Colorado Gives platform for soliciting and receiving donations. The Colorado Gives platform processes donations made via credit card, bank transfer, Donor Advised Fund (DAF), IRA, wire, PayPal, Google Pay and stock transfer.
• The ability to process check donations via COLab.
• Donor-acknowledgements letters via email for all donations.

View some of the projects fiscally sponsored by COLab here.

If you have additional questions, please reach out to us here.