Frequently Asked Questions

Everything you need to know about APC. We've answered the questions we hear most often below. If you don't find what you're looking for, reach out at and we'll be happy to help.

About Fiscal Sponsorship
Fiscal sponsorship is a formal arrangement where an established 501(c)(3) nonprofit — like APC — provides its tax-exempt status to another organization. This allows the sponsored organization to receive tax-deductible donations and apply for grants that require a 501(c)(3) sponsor, without needing their own nonprofit status yet. Think of it as operating under our legal and financial umbrella while you build, grow, or pursue your own status.
Once approved, both your organization and APC sign a Fiscal Sponsorship Agreement — a Memorandum of Understanding (MOU) that is renewed annually. Under this agreement, APC accepts donations and grants on your behalf, processes the funds, and forwards them to your organization minus our 5% administrative fee. In return, your organization submits a simple quarterly report on activities, programs, and expenditures. APC handles the annual 990 filing and CPA audit. The relationship is designed to be lightweight for you and fully compliant for your funders.
A few things set APC apart. We're a true partner, not just a processor — we show up as a coach and a resource, not just a back-office function. We prioritize equity, with a specific and intentional commitment to organizations led by and serving Black, Brown, and other underserved communities. We're a flow-through sponsor, meaning we don't hold or control your spending. Our fee is flat and transparent at 5% on all gifts received, with no hidden costs or surprises. And through our relationship with Access Philanthropy, Inc., sponsored organizations can access fundraising assistance, grant writing support, and foundation outreach.
Beyond the standard fiscal sponsorship infrastructure, APC-sponsored organizations benefit from:
  • Annual CPA audit and 990 filing handled entirely by APC
  • Immediate grant-readiness — funders can direct gifts to APC on your behalf right away
  • Access to fundraising and grant writing support through Access Philanthropy, Inc.
  • A hands-on team available to answer operational and fundraising questions
  • A pathway to grow — APC functions as an incubator, supporting organizations from early vision through to independence
  • Connection to a broader network of philanthropic leaders locally, regionally, and nationally
Eligibility & Getting Started
No. APC specifically serves emerging groups that are in the process of pursuing their own 501(c)(3) status, as well as established organizations that want the support of a fiscal sponsor. Whether you're just starting out or already operating, we welcome your application.
Yes. Having your own 501(c)(3) doesn't disqualify you from working with APC. Some organizations choose to work with a fiscal sponsor even after receiving their own status — particularly for specific projects or initiatives that benefit from additional administrative support, or to access fundraising assistance through our relationship with Access Philanthropy, Inc. If you're wondering whether APC is a good fit for your situation, reach out and we'll talk it through.
APC works with a wide range of mission-driven organizations across the United States. We have a particular focus on organizations committed to serving Black, Brown, and other underserved communities. We work with organizations at all stages — from those with a bold idea and no funding, to those with grants in hand who need a compliant fiscal home.
Yes. While APC was founded in Minnesota and is registered with the MN Attorney General, our fiscal sponsorship services are available to select charitable organizations across the United States. We welcome inquiries from organizations operating locally, regionally, and nationally.
The Agreement & Ongoing Relationship
There is no fixed time limit. The Fiscal Sponsorship Agreement (MOU) is signed annually and renewed each year as long as both parties are aligned. Some organizations work with APC for a year or two while pursuing their own 501(c)(3) status. Others maintain a long-term ongoing relationship. The timeline is driven by your organization's goals, not a deadline we impose.
Sponsored organizations submit a simple quarterly report covering activities, programs, and expenditures. This keeps APC informed of your work and supports our annual audit and 990 filing. The reporting is intentionally minimal — our clients consistently describe it as low-burden. There are no lengthy grant reports or complex financial statements required from your end.
No. APC operates as a flow-through fiscal sponsor, not a pre-approval model. When donations or grants are received on your behalf, we process the funds and forward them directly to your organization minus the 5% fee. Your organization is responsible for managing, spending, and accounting for the funds in accordance with your mission and donor intent. We provide the compliance infrastructure, not oversight of your day-to-day decisions.
We celebrate it. One of APC's goals is to help organizations grow to the point where they're ready to stand on their own. When you receive your own 501(c)(3) status and are ready to transition, we work with you to ensure a smooth handoff of any outstanding funds, relationships, and reporting obligations. Graduating from APC sponsorship is a success story, not a departure.
Fees & Finances
When APC receives a donation or grant on your behalf, we retain 5% as an administrative fee and forward the remaining 95% to your organization. For example, a $10,000 grant results in a $9,500 payment to you. This fee covers banking, accounting, reporting, foundation interaction, CPA audit costs, and technical services. It is flat and consistent — no additional charges, no setup fees, and no tiered pricing.
APC is transitioning to a model that includes a monthly fee for sponsored organizations, in addition to the 5% fee on funds received. The monthly fee helps ensure that APC can continue to provide hands-on support and administrative services regardless of gift volume in any given month. Details on current pricing are available when you apply — reach out if you'd like to discuss before submitting.
Yes — through our relationship with Access Philanthropy, Inc., certain service tiers include access to fundraising assistance, grant writing support, and foundation outreach. This is one of the ways APC goes beyond standard fiscal sponsorship. Ask about fundraising support when you apply and we'll walk you through what's available for your organization.

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