Ribbon's platform serves as a catalyst for organizations seeking an alternative to filing for nonprofit status with the IRS.
Ribbon does not assist users in filing for 501(c)(3) nonprofit status with the IRS. Instead, it offers an alternative route through fiscal sponsorship, which allows organizations to operate under the umbrella of an existing nonprofit, known as the fiscal sponsor.
A fiscal sponsorship agreement is a contractual relationship between an existing nonprofit (the fiscal sponsor) and a sponsored organization. The fiscal sponsor agrees to accept tax-deductible donations on behalf of the sponsored organization and provides oversight to ensure funds are used for the charitable purposes outlined by the sponsored organization.
Ribbon streamlines the fiscal sponsorship application process, making it more accessible and efficient for organizations seeking sponsorship. Through the platform, groups can apply to various established 501(c)(3) organizations actively seeking new sponsored programs.
Once approved, Ribbon provides a comprehensive platform for both the fiscal sponsor and the sponsored program. The platform facilitates efficient management of fundraising, reimbursements, bill payments, and thorough accounting of all expenditures by the sponsored program.
Key Features of Ribbon in Fiscal Sponsorship:
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Fundraising Management: Ribbon enables organized and transparent fundraising efforts for sponsored programs.
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Expense Oversight: The platform ensures oversight of expenses, providing transparency and accountability for fund utilization.
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Financial Tracking: Ribbon's accounting features enable precise tracking of funds associated with sponsored programs.