What is fiscal sponsorship?
Fiscal sponsorship lets a project operate under the tax-exempt status of an established 501(c)(3) nonprofit, without the project needing to incorporate separately. Donations to the project are tax-deductible, grants can be received and administered through the sponsor, and the project gets the legal and financial infrastructure of a nonprofit without spending months (and thousands of dollars) setting one up.
For GCR researchers and organisers, this means you can go from "fundable idea" to "operating project" in weeks rather than 6–12 months. You focus on the work; Beacon handles compliance, financial administration, and reporting.
What Beacon provides
- 501(c)(3) tax-exempt status for donations to your project
- Financial administration (receiving grants, disbursing funds, reporting)
- Compliance and governance support
- Access to Beacon's GCR network and knowledge base
What Beacon does not provide
- General operational support outside financial administration
- Fundraising (though Beacon may facilitate introductions)
- Guaranteed ongoing support; projects must meet periodic review criteria
Costs your project is responsible for
Beyond Beacon's admin fee, sponsored projects bear their own operational costs. Some of these catch people unaware if they haven't budgeted for them:
- Employment overhead. Under Model A, project personnel are legally employed through Beacon. Employer-side payroll taxes, statutory contributions, and Employer of Record (EOR) fees for staff outside the US add 12–35% on top of gross salary depending on country. This is not a Beacon fee — it's a legal requirement of employment that applies regardless of sponsor.
- Contractor administration. Independent contractors have lower overhead but still incur administrative costs for invoicing, compliance, and payment processing.
- Project-specific costs. Insurance, travel, compute, software, and other operational expenses are borne by the project, not by Beacon.
Our Budget Reference Data page publishes the overhead rates by country, and the Grant Budget Builder will walk you through estimating these costs before you apply.
Fee structure
Beacon charges an administrative fee on gross revenue received by each sponsored project:
- 10% on the first $500,000 per calendar year
- 5% on revenue above $500,000
This fee covers financial administration, compliance, tax-exempt status, banking, reporting, and access to Beacon's operational infrastructure. There are no setup fees or hidden charges. The fee is calculated on funds at deposit, not on expenditures.
Sponsorship model
Beacon operates under Model A (comprehensive) fiscal sponsorship. Under this model:
- The sponsored project is a programme of Beacon, not a separate legal entity
- All project assets, funds, and intellectual property are held by Beacon
- Project personnel are employees or contractors of Beacon for legal and tax purposes
- Beacon retains oversight responsibility and fiduciary control
- The project operates with day-to-day autonomy within agreed parameters
Model A is the standard for fiscal sponsors serving research and field-building projects. It provides the strongest legal protection for both the sponsor and the project, and is the model expected by most institutional funders.
Projects that outgrow fiscal sponsorship or need full independence can transition to their own 501(c)(3) status. Beacon supports this transition and does not create lock-in.