I am the business and accounting manager (volunteer role) for a local sports league classified as a 501c3 we are considering being a fiscal sponsor for two smaller sports clubs with a diversity emphasis who do not have a 501c3 status in order to allow them to fundraise for the purpose of attending an international competition. Are there any downsides to this? I don’t have a background in non for profit accounting at my day job.

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Posting as :
works at
You are currently posting as works at

One thing to watch out for is the added administrative and legal responsibility.. your league would be on the hook for compliance, reporting, and making sure funds are used properly. Might be worth consulting a nonprofit accountant just to cover all bases..

Don’t do it.

Why do you say don’t?

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