Fiscal Sponsorship Program
Understanding Fiscal Sponsorship
What is fiscal sponsorship?
Fiscal sponsorship allows a project to receive tax-deductible donations through a U.S. nonprofit organization, without having to create its own nonprofit structure. French in Motion acts as the fiscal sponsor by receiving and managing funds on behalf of approved projects, and ensuring they are used in accordance with the agreed budget and applicable regulations.
Does French in Motion fund my project?
No. Fiscal sponsorship does not provide funding directly.
It provides a framework that allows you to raise funds, particularly from U.S. donors and foundations.
Does fiscal sponsorship make my project a nonprofit?
No. Your project remains independent.
Fiscal sponsorship allows your project to benefit from French in Motion’s nonprofit status for fundraising purposes, but it does not change your legal structure.
Funding Structure
What is the difference between a donor and an investor? What are “sofT money” and “hard money”?
A donor contributes money to support your project and may receive a charitable tax deduction (in the U.S.) in return. Donors do not receive any financial return.
An investor contributes money with the expectation of repayment and potential profit.
Investments are part of the project’s commercial financing and are not eligible for charitable tax deductions.
In film financing, these are often referred to as:
Soft money: non-recoupable funding that does not need to be repaid, such as donations, grants, tax credits, and rebates.
Hard money: funding that must be repaid, often with a return, such as equity investments or loans.
Fiscal sponsorship specifically applies to the “soft money” portion of a project’s financing.
Can I combine fiscal sponsorship with other sources of financing?
Yes. Fiscal sponsorship can be used alongside other financing sources, including broadcaster financing, private investment, grants, pre-sales, or crowdfunding.
Only donations made through French in Motion are eligible for U.S. tax-deductible treatment.
Donations & Fundraising
How do donations work?
Donations are made to French in Motion, with your project clearly identified.
French in Motion issues tax receipts and ensures that funds are used to support the approved project in accordance with the agreed budget.
Can donors give directly to my production company?
Yes, but those contributions would not go through French in Motion and would not be tax- deductible under its 501(c)(3) status. To benefit from U.S. tax deductibility, donations must be made to French in Motion.
Can I use crowdfunding platforms like Kickstarter or Seed&Spark?
You may run crowdfunding campaigns independently.
However, French in Motion cannot receive tax-deductible donations through third-party crowdfunding platforms such as Kickstarter or Seed&Spark. Funds raised through those platforms are not eligible for the same tax treatment.
Why is there an administrative fee?
The administrative fee covers the costs of managing the program, including:
financial administration
compliance and reporting
donor processing and tax receipting
platform and operational costs
French in Motion’s administrative fee is aligned with industry standards.
INTERNATIONAL APPLICANTS
What happened to my property rights in fiscal sponsorship?
Fiscal sponsorship does not transfer any intellectual property rights to French in Motion.