Is fiscal hosting right for you?
Imagine a community group, social movement, or project that is making a real impact, but lacks the legal structure to hold funds. That's where fiscal hosting comes in. Fiscal hosts are legally registered non-profit that steps in to hold the money and do the paperwork, so you can focus on making a difference. With fiscal hosting, anyone can make a difference, regardless of their legal status.
Are you part of a grassroots movement, community group, or organization that is making a real impact but lacks the legal structure to hold funds? Fiscal hosting is might be the solution for you. Here are the top three reasons why.
Before funders can give out grants, they require a level of accountability that is normally provided by legal status e.g. a registered charity is legally obligated to use their money for their charitable cause.
A fiscal host acts as a guarantor for groups that are not formalised as a legal entity. In acting as a guarantor, fiscal hosts provide funders with legal assurance that the money will be spent according to the funding terms agreed.
Many funders require a level of accountability that is provided by legal status, but with a fiscal host acting as a guarantor, you can apply for grants and funding opportunities without being a formal legal entity.
Many grassroot groups emerge through the need to respond quickly to a crisis. Registering as a nonprofit, on the other hand, can take several months. Even if you do plan to become a constituted group, a fiscal host can offer immediate credibility in the meantime.
Move at the speed of change. Grassroots groups often emerge in response to crisis and need to act fast. Registering as a nonprofit can take months, but with a fiscal host, you can gain immediate credibility and support.
Having thousands of pounds going into someone’s personal bank account can quickly become problematic. Not only could it be taxed as personal income, but it can also lead to questions of trust and become a burden for the person responsible for keeping track of all of the incoming and outgoing money.
A fiscal host will safely hold your money in their bank account while still allowing you to access the money when you need to.Some fiscal hosts (including us), will provide you with a platform where transactions (income and expenses) are transparently logged meaning you won’t have to spend time on reporting.For larger groups, a fiscal host can help with bigger back office administration tasks such as managing payroll.
Managing lots of money in a personal bank account can be a headache, but with a fiscal host, you can safely hold your money in our bank account, access it when you need it, and spend less time on admin. Some fiscal hosts, like Open Collective Europe, even provide a platform for transparent transactions and back office administration tasks like managing payroll.
We meet the compliance and accountability requirements of funders, so you can apply for and access funding that may not be available to unincorporated groups.
We take on the admin burden and process all transactions on your behalf, so you can stay focused on your mission and not waste time on bank transfers, invoices, and reimbursements.
We provide digital fiscal hosting through Open Collective, making it easy to keep transparent financial records and be accountable to your group, funders, and community.
With Open Collective Europe, you can collaborate with multiple admins and rotate responsibilities, so no one person is shouldering the burden alone. We have lots of experience with participatory process and can also advise you on complimentary tools and methods for your group.
Whether you're a local group or an international movement, we're here to help. We can advise you on funding opportunities, connect you to an international network, and provide your donors with documents for international tax deductibility when possible.
