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
Are international applicants eligible to apply?
Yes. French in Motion welcomes applications from international filmmakers and producers.
However, as a U.S.-based nonprofit organization, French in Motion is required to comply with U.S. laws and regulations. This includes restrictions related to countries, territories, or individuals subject to sanctions administered by the U.S. government.
As a result, projects involving sanctioned countries or individuals may not be eligible to participate in the program, except where permitted under applicable U.S. law.
For detailed info you can consult this website.
I do not live in the U.S. and do not have a U.S. tax ID — can I still apply?
Yes. A U.S. tax identification number is not required to apply for fiscal sponsorship.
However, depending on how funds are disbursed, French in Motion may require certain tax forms or documentation from non-U.S. individuals or entities in order to comply with U.S. tax regulations.
What is an EIN, and do I need one?
An Employer Identification Number (EIN) is a nine-digit number issued by the U.S. Internal Revenue Service (IRS) for tax identification purposes. It is used by entities such as companies, partnerships, and in some cases individuals, to report financial activity.
While French in Motion does not require applicants to have an EIN, some projects choose to obtain one for administrative, banking, or tax-related reasons.
In general, non-U.S. individuals or entities may be able to apply for an EIN through the IRS, depending on their situation.
More information here
Do I need to create a U.S. company to participate in the program?
No. Creating a U.S. company or legal entity is not required to apply for or participate in the fiscal sponsorship program.
However, some project teams choose to establish a U.S. entity (such as an LLC) for practical reasons related to banking, contracting, or taxation.
The appropriate structure depends on your specific circumstances. French in Motion does not provide legal or tax advice, and we recommend consulting a qualified professional before making this decision.
If I am a U.S. resident, do I need an EIN or can I use my SSN?
U.S. residents may use their Social Security Number (SSN) or an EIN, depending on how they structure their project.
While creating a separate legal entity is not required, it is generally recommended to maintain a separate bank account for project-related funds, regardless of whether you operate as an individual or through a company.
What type of business entity should I register?
There is no single required structure. The type of entity you choose (if any) should be appropriate for your project’s needs and your personal or professional situation.
Because this decision can have legal and tax implications, we recommend consulting a tax advisor or legal professional.
General information on U.S. business structures is available through the IRS and other official resources.
Are funds received through fiscal sponsorship considered taxable income?
In many cases, funds received through fiscal sponsorship — including donations and grants — may be considered taxable income, depending on your status, your structure, and the country in which you are based.
French in Motion does not provide tax advice. We strongly recommend consulting a tax professional to understand how these funds will be treated in your specific situation.