Fiscally sponsored organizations can apply for grants through Grant Lifecycle Manager (GLM) without holding their own 501(c)(3) status. In this workflow, the applying organization registers and submits applications as usual in GLM. When a grant is approved and synced to CommunitySuite, the applying organization becomes the grantee of record, and the 501(c)(3) fiscal sponsor is added to the Sponsored Org field on the grant. If the check is issued to the fiscal sponsor rather than the applying organization, the Pay the Sponsored Org field is set to Yes.
Who: Grants managers and administrators managing fiscally sponsored organization applications and grant processing across GLM and CommunitySuite.
When to Use a Fiscal Sponsor Workflow
Use a fiscal sponsor workflow when:
- Grant applications come from organizations that are not registered 501(c)(3) nonprofits but are partnering with a fiscal sponsor.
- Grant history should be tracked under the applying organization rather than the fiscal sponsor so program officers can see an accurate record of who is doing the work.
- An applying organization may eventually obtain its own 501(c)(3) status and grant history should carry over without manual cleanup.
- GLM registration, application forms, and CommunitySuite profiles need to be configured to support fiscally sponsored applicants before grants begin syncing.
The workflow described in this article uses CommunitySuite functionality in a non-standard way. It is optimized for tracking the applying organization (the organization doing the work) and preserving that organization's grant history. An alternative approach exists in which grants are processed under the fiscal sponsor's profile instead, which is more aligned with how CommunitySuite is designed to work natively. See Alternative Methods below for details on both approaches.
Before implementing any fiscal sponsorship workflow, the full organization team should align on which approach to use. This is a one-time, organization-wide decision. Changing approaches mid-history will affect grant reporting in both GLM and CommunitySuite. Choose one approach and stay with it.
What Is a Fiscal Sponsor?
Some organizations have an EIN but are not registered 501(c)(3) nonprofits. To qualify for grant funding, they partner with a qualified 501(c)(3), a fiscal sponsor, who agrees to receive and administer grant funds on their behalf.
- Fiscal sponsor: The organization that holds legal and financial responsibility for the grant.
- Applying organization (AppOrg): The organization doing the work.
To receive a grant, any organization without 501(c)(3) status must have a fiscal sponsor. This requirement should be clearly communicated on the registration page.
Key Terms
| Term | Definition |
|---|---|
| Fiscal Sponsor | The 501(c)(3) organization that receives grant funds on behalf of the applying organization. |
| Applying Organization (AppOrg) | The organization doing the work. This is whose history is tracked in GLM and CommunitySuite under the standard workflow. |
| EIN | Tax ID number used to identify organizations. |
| Charity Check | Verification of an organization's nonprofit status in CommunitySuite, run against the grantee's EIN. |
| Sponsored Org Field | A CommunitySuite grant field used to link the fiscal sponsor to a grant. Note: used differently than the field label suggests. See Sync Grants to CommunitySuite below. |
Why the Applying Organization Stays the Applicant
The recommended approach ties all application history and reporting to the applying organization, not the fiscal sponsor. This approach is the standard for the vast majority of workflows.
Benefits of this structure:
- Grant history accurately reflects who is doing the work, making it easy for program officers to track applicant relationships over time.
- If the fiscal sponsor also applies for their own grants, their history remains separate and unaffected.
- If the applying organization eventually gets its own 501(c)(3) status, simply update the EIN in GLM and CommunitySuite. The full grant history carries over intact.
- Reporting in GLM is cleaner and more accurate for all parties.
Because grants are recorded under the applying organization's profile (which is not a 501(c)(3)), CommunitySuite's built-in 990 report will not work correctly for these grants. Organizations using this approach must run 990 reporting through Custom Reports or manually adjust the output from CommunitySuite's 990 report before filing. Confirm this tradeoff is acceptable to your team before committing to this workflow.
Workflow Summary
The steps below outline the full recommended sequence for setting up and processing fiscally sponsored grants under the applying organization approach. Complete these steps in order. The pre-sync setup in CommunitySuite is especially important and should be done before any grants arrive from GLM.
- Decide on your approach. Align the full team on whether to use the applying organization workflow (this article) or the fiscal sponsor as grantee approach (see Alternative Methods). Make this decision once and stay with it.
- Configure GLM registration. Contact Support to add language to the registration page directing organizations without an EIN to enter 00-0000000 and contact the organization.
- Configure the application form. The standard yes/no 501(c)(3) question is acceptable, or replace it with a multiple-choice question and add branching logic for fiscal sponsor follow-up questions. An admin-only review status question can also be added.
- Link profiles from GLM to CommunitySuite proactively. Before grants begin syncing, navigate to the Profiles page in CommunitySuite and click Create in the left-side menu. Click Search GLM in the left-side menu, select the GLM site, search for unlinked profiles, and either create new CommunitySuite profiles or link existing ones. Alternatively, use a bulk profile import into CommunitySuite to create profiles in advance, then link them to GLM.
- Run a bulk profile update to disable charity checks. In CommunitySuite, use the bulk profile update to set No Charity Check for all fiscally sponsored organizations. Do this before any grants arrive, not on a grant-by-grant basis.
- Run a bulk note and alert import on grants. Use the bulk import to add a note and alert to each fiscally sponsored grant record. When creating the note, set the alert type to Grants so it appears at the top of the grant when opened. Include the fiscal sponsor's org Profile ID in the alert text to make it easy to locate the fiscal sponsor record. The alert should note that a fiscal sponsored org must be linked and that the charity check is disabled. See Link and Prepare Profiles Before Syncing for details.
- Manage award letters and contracts. Award letters and contracts can be sent from GLM before syncing to CommunitySuite, or from CommunitySuite after the grant is synced. If sending from GLM, update the letter to reflect the fiscal sponsor's name and executive director before sending. See Manage Award Letters and Contracts below.
- Sync grants to CommunitySuite. Map each grant's grantee profile to the applying organization. Add the fiscal sponsor to the Sponsored Org field. Set Pay the Sponsored Org to Yes if the check is issued to the fiscal sponsor.
Set Up Registration for Fiscally Sponsored Organizations
When a fiscally sponsored organization registers in GLM, they may or may not have their own EIN. Handle each case as follows:
- If the organization has an EIN, they enter it as normal, even if they are not a 501(c)(3).
- If the organization does not have an EIN, instruct them to enter 00-0000000 in the EIN field and contact the organization.
Recommended Registration Page Language
Add language similar to the following to the registration page:
If your organization does not have an EIN, please enter 00-0000000 and contact the Organization. You must have a fiscal sponsor if you are not a registered nonprofit.
The specific wording can be placed in an instruction field at the top of the registration form or alongside the EIN field, wherever it is most visible to applicants.
Configure the Application Form
This section covers collecting information about the fiscal sponsor on the application form.
Yes/No 501(c)(3) Question or Multiple Choice Question
The standard "Is your organization a 501(c)(3)?" yes/no question is acceptable, or it can be replaced with a multiple-choice question that captures more useful data for reporting. Example options for multiple choice questions:
- We are a registered 501(c)(3)
- We are a church or other religious entity
- We are applying with a fiscal sponsor
- Other
Configure Branching Logic
Configure branching on the question so that each selection routes the applicant appropriately:
- Applying with a fiscal sponsor: Display follow-up questions asking for:
- Fiscal sponsor name and EIN
- Signed fiscal sponsor agreement (upload question type)
- Fiscal sponsor budget (upload question type)
- Other: Display a message indicating the applicant is not eligible to apply.
If branching is not available in the GLM license, make the fiscal sponsor fields optional questions rather than branched ones. Applicants will see them regardless of their selection, but they will not be required.
Track Fiscal Sponsor Review Status
Consider adding an administrator-only question to the application (for example, "Has the fiscal sponsor been reviewed and approved?" Yes/No) to track internal review status without exposing it to applicants.
The fiscal sponsor question can also be pulled into the Application Submitted stage view so staff can see at a glance which incoming applications involve fiscal sponsorship. Custom columns can be used to surface the fiscal sponsor field directly on workload pages, giving staff quick visibility into fiscal sponsorship status without opening each individual request.
Enter fiscal sponsor information as discrete fields rather than in a single block to keep data reportable and to support export/import workflows into CommunitySuite.
Link and Prepare Profiles Before Syncing
Complete the following setup steps in CommunitySuite before syncing any fiscally sponsored grants from GLM. Doing this proactively prevents grants from arriving without the required fiscal sponsor information in place.
Link GLM Profiles to CommunitySuite
To proactively link applying organization profiles:
- Navigate to the Profiles page in CommunitySuite and click Create in the left-side menu.
- Click Search GLM in the left-side menu.
- Check the box next to the GLM site.
- Search for unlinked profiles.
- For each unlinked profile, either create a new CommunitySuite profile or link the GLM profile to an existing CommunitySuite record.
Alternatively, use a bulk profile import into CommunitySuite to create the profiles in advance, then link them to the corresponding GLM profiles.
Bulk-Disable Charity Checks
Use the CommunitySuite bulk profile update to set No Charity Check for all fiscally sponsored organizations before any grants arrive. This avoids addressing charity check failures one by one as grants sync. Put a "1" in the AO column to disable charity checks on the bulk profile update .csv.
Bulk-Import Notes and Alerts on Grants
Use the bulk import to add a note and alert to each fiscally sponsored grant record. When configuring the import:
- Set the alert area to Grants so the alert appears at the top of the grant when a staff member opens it.
- Include the fiscal sponsor's org Profile ID in the alert text so staff can quickly locate the fiscal sponsor record.
- The alert should note that a fiscal sponsored org must be linked to this grant and that the charity check is disabled.
Setting up profile alerts and disabling charity checks before syncing grants from GLM is strongly recommended. Proactive setup reduces the risk of grants being processed without the required fiscal sponsor link in place.
Manage Award Letters and Contracts
Award letters and contracts can be managed in GLM before the grant is synced to CommunitySuite, or sent directly from CommunitySuite after the sync. Either way, the letter must be adjusted before sending.
Because the applying organization is the grantee of record, the award letter or contract will default to the applying organization's information. Before sending:
- Update the award letter or contract to reflect the fiscal sponsor's name and executive director, not the applying organization's.
- The email notification for the award letter goes to the applying organization.
- The applying organization is responsible for getting the contract signed by the fiscal sponsor and uploading the signed copy to the portal.
The award letter adjustment is easy to miss. Build it into the grant approval checklist to ensure it is completed before documents are sent, regardless of whether sending from GLM or CommunitySuite.
Sync Grants to CommunitySuite
Once profiles are linked and pre-sync setup is complete, sync the grant from GLM to CommunitySuite and map the grantee profile to the applying organization, not the fiscal sponsor.
Steps to Sync a Fiscally Sponsored Grant
- Map the grantee profile to the applying organization as usual.
- If the charity check has not already been disabled via bulk update, the organization will fail the charity check. See Handle Charity Check Failures below.
- Once the grant is in the New bucket on the Grants page in CommunitySuite, click on the grant ID, and then click Add next to the Sponsored Org/Payee field.
- There is no bulk set option; this must be done one by one.
- There is no bulk set option; this must be done one by one.
- Search for and select the fiscal sponsor organization from the drop-down menu.
- If the check is being issued to the fiscal sponsor, click Change next to the Pay the Sponsored Org/Payee field to change the field to "Yes".
Handle Charity Check Failures
The charity check in CommunitySuite runs against the grantee's EIN. Because the applying organization may not be a registered 501(c)(3), the check will fail. This is expected and can be overridden manually.
Whenever possible, use the bulk profile update to disable charity checks before grants arrive (see Link and Prepare Profiles Before Syncing above). The steps below are for handling individual records as needed.
Turn Off the Charity Check for an Individual Organization
To turn off the charity check for an individual organization:
- Navigate to the grantee record in CommunitySuite.
- Click Edit in the Grantee section.
- Check the No Charity Status Check box, and then click Save.
After disabling the charity check, create a note on the grantee's profile. In the note, check the Alert box so the alert appears when a new grant record is opened for this profile. The alert text should note that the charity check is turned off and that staff should verify the fiscal sponsor's EIN instead. This creates an internal audit trail and helps future users understand why the check was bypassed.
Alternative Methods
Three alternative approaches are available for situations where the standard applying organization workflow does not fit the organization's needs.
Apply Under the Fiscal Sponsor's Profile
In this approach, the fiscal sponsor is the grantee of record in both GLM and CommunitySuite. The applying organization is noted in the application but is not the primary profile.
Benefits of this approach:
- Aligns with how CommunitySuite is designed to handle grant payments natively.
- CommunitySuite's built-in 990 reporting works correctly.
- No charity check failures. The fiscal sponsor's 501(c)(3) status is on file.
- The Sponsored Org field in CommunitySuite can be used as intended.
Tradeoffs to consider:
- Grant history accumulates under the fiscal sponsor, not the organization doing the work, making it harder to track the applying organization's history over time.
- If the fiscal sponsor administers multiple applying organizations, their grant history includes grants for all of them, which can obscure the fiscal sponsor's own grantmaking relationship.
- If the applying organization eventually obtains 501(c)(3) status, historical grants remain under the fiscal sponsor's profile and cannot be easily transferred.
The Dash Method
The Dash Method is a variation of the standard applying organization workflow. Instead of entering 00-0000000, the applying organization uses the fiscal sponsor's EIN and formats the organization name as:
Applying Organization Name - Fiscal Sponsor Name
Benefits of this method:
- The sync to CommunitySuite is cleaner.
- The charity check process is easier since the EIN on file belongs to the fiscal sponsor.
- Grant history for the applying organization is still preserved long-term.
- If the organization later obtains its own 501(c)(3), simply update the name and EIN in both GLM and CommunitySuite. Grant history stays intact.
The only limitation of this method is that the record does not explicitly indicate the organization was formerly fiscally sponsored. A note in the CommunitySuite profile can document this context for future reference.
This method also works well for city or university departments that need to be tracked separately while still rolling up to a parent record using the Parent-Child profile relationship.
Parent-Child Profile Relationship
In CommunitySuite, a non-501(c)(3) organization can be set up as a child organization under the fiscal sponsor's profile. This structure gives the organization consolidated visibility into all grants associated with a fiscal sponsor, including both grants awarded directly to the sponsor and grants awarded to the organizations they sponsor.
- The child organization's grant history rolls up to the parent record.
- Both organizations continue to function independently in the system.
- Reporting at the parent level reflects the full scope of related grants.
This approach is useful for organizations with multiple departments or programs that need separate tracking but shared parent-level reporting.
Quick Reference
Below is a quick reference for each scenario and the recommended approach for fiscally sponsored organizations.
| Scenario | Recommended Approach |
|---|---|
| Organization has no EIN | Enter 00-0000000; must have a fiscal sponsor to be eligible |
| Organization has an EIN but is not a 501(c)(3) | Use the Dash Method or standard sync with the Sponsored Org field |
| Charity check fails | Use bulk profile update to disable in advance; or override individually and add a profile alert |
| Check is issued to the fiscal sponsor | Set Pay the Sponsored Org to Yes on the grant |
| Organization may get its own 501(c)(3) later | Use the Dash Method; grant history is preserved when EIN is updated |
| Multiple departments under one organization | Use Parent-Child profile relationship in CommunitySuite |
| Organization needs built-in 990 reporting to work | Use the fiscal sponsor as grantee approach instead of the applying organization approach |
| Organization wants to see full grant value across a fiscal sponsor and its sponsored organizations | Use Parent-Child profile relationship in CommunitySuite |