The Fractured Atlas fiscal sponsorship program is a grantor-grantee relationship and all funds released through our program are considered grants in the eyes of the IRS. The IRS has determined that all grant funds are considered taxable income under the tax law.
Funds released for the purposes of your sponsored project must be used for approved project-related activities only. Money that is disbursed to you for project-related expenses must remain under your direct control. You are certainly allowed to pay people for services they provide, but you are not allowed to give them a chunk of cash to use at their discretion without directly supervising the funds and restricting how they can be used. If you are planning on giving grants, scholarships or cash awards, please speak to our staff.
Funds must be fully expended within 90 days of the fund release approval. Projects may only reimburse themselves for expenses incurred while their fiscal sponsorship is active.