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Africa Impact Fundraising (AIF) Grants

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Fiscal Sponsorship

As an African organization, having a Fiscal Sponsor makes it exponentially easier for foreign donors from all over the world, and especially the US, to send you money. â€‹

The New Africa Fund aims to help you make yourself as accessible as possible to foreign donors, at a minimum cost, so that your organization can use the money for maximal impact. 

What is a Fiscal Sponsor

A fiscal sponsor is a nonprofit organization that provides fiduciary administrative services by sharing its 501(c)(3) status with unincorporated nonprofit projects. Fiscal sponsorship consequently allows NGO’s and CBO’s that are not recognized as tax-exempt by the IRS to receive grants and tax-exempt donations from foundations and individuals. 

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US Donors are eligible for tax deduction only when they donate to an organization that is recognized by the IRS as tax-exempt pursuant to IRS Code Section 501(c)(3). Additionally, the guidelines of most private US foundations explicitly require grantees to be recognized as tax-exempt by the IRS. Finally, sending money to Africa from the US involves a lot of bureaucracy, which unfortunately makes it less appealing to potential donors. The Fiscal Sponsor is the bridge through which donors can easily channel funds or grants to a respective NGO or CBO that is not itself recognized as tax-exempt by the IRS, while still receiving a tax deduction for the contribution. 
 

There are different models of Fiscal Sponsorship, which include different levels of collaboration and involvement of the fiscal sponsor in the project. The fiscal sponsorship model offered by the NAF is called the “Pre-Approved Grant Relationship”. In this model, the sponsored organization is a separate, legal entity that maintains ownership and liability of the project, and remains responsible for meeting its own legal and tax filings. The sponsored organization receives funds in the form of grants from the fiscal sponsor. 

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Using a fiscal sponsor satisfies IRS requirements as long as the fiscal sponsor maintains the right to decide, at its own discretion, how it will use contributions. The NAF is committed to honoring and directing funds to the respective organizations, as requested by the donors of said funds. 

How to use the NAF as a Fiscal Sponsor

To be sponsored by the NAF, you have to be an African NGO or CBO in good standing that is legally registered, and shares the values and visions of the NAF for civil society in Africa. 

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After you are vetted and approved, you will receive a memorandum of understanding valid for one year. Every year the NAF reevaluates its Fiscal Sponsorship grantees for continued support. 

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As mentioned, the NAF offers a Pre-Approved Grant Relationship model of Fiscal Sponsorship. 

  • You would receive a unique donation link, which anyone can use to donate money from anywhere in the world, in any currency. 

  • You would receive bank details for anyone who wants to donate via bank transfer.​

 

The donation is to the NAF, which grants the donations to the requested organization in Africa.  

Only US persons will receive a tax deduction for donations. US donors receive a tax receipt and tax benefits. 

Fees for Fiscal Sponsorship

There is no fee to apply for Fiscal Sponsorship with the NAF, and there is no fee to be vetted or approved. The NAF takes a 1% fee on funds raised to cover our administrative expenses.

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​Please note: 

  • Donations made by credit card are subject to an additional 2-4% fee from the credit processor, but your supporters are given the option to cover that fee for you. 

  • There is no additional fee for donation via bank transfer. 

  • The NAF cannot accept donations by check. 

When and how the funds are transferred

The NAF will inform you once a month of the donations you have received. The donations will be transferred by wire transfer to your account in local currency on the 4th Monday of every month.

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Please note that the minimum amount per transfer from the NAF would be $100 USD. If your monthly donations do not reach $100 USD, they will be accumulated by the NAF until they reach or surmount this amount, and then you will receive the accumulated donations by wire transfer. 

Application for Africa Impact Fundraising Grants will open in the coming months.

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