Fractured Atlas differentiates between Earned and Contributed revenue across our programs. Specifically, Fractured Atlas's Fiscal Sponsorship program can only process contributed revenue.
So what's the difference?
- Contributed revenue refers to gifts made freely without receiving any goods or services in exchange. Donations, grants, and noncash donations are examples of contributed revenue.
- Earned revenue are funds where the person providing money will receive a good or service of equal or greater value in exchange. This includes (but is not limited to) ticket sales, payment for services/work, advertising, class/camp/workshop fees, artwork sales, and merchandise fees. It is your responsibility to manage any income from ticket sales, fees for service, or other transactions independently of your fiscal sponsorship.
So, then where does my earned revenue go?
Income from ticketing, merchandise sales, service fees, etc. is earned revenue, which does not fall under the fiscal sponsorship program, and should be received and managed outside of our fiscal sponsorship program.
And what happens when I offer my donors perks through Giving Levels or crowdfunding Rewards?
As long as the market value of the perk is less than the total amount of the donation, then these are considered partially tax-deductible donations, and Fractured Atlas can process partially tax-deductible donations. You can read more about partially tax-deductible donations and how to calculate them here.