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How Fiscal Sponsorship Helps Nonprofits Access Federal Grants
Organizations that have not yet completed their SAM.gov registration can still pursue federal funding through a fiscal sponsorship arrangement. A fiscal sponsor is a 501(c)(3) organization that already holds an active Unique Entity Identifier (UEI) and SAM.gov registration, allowing them to apply for and administer grant funds on behalf of a sponsored project. Therefore, emerging nonprofits and community groups can begin the grant application process while their own SAM.gov registration is pending.
3 Steps to Access Grants via Fiscal Sponsorship:
- Step 1: Identify a 501(c)(3) fiscal sponsor with an active UEI and SAM.gov registration that aligns with your mission.
- Step 2: Execute a Memorandum of Understanding (MOU) that defines roles, fund management, and compliance responsibilities.
- Step 3: Submit your grant application through the sponsor's verified entity while simultaneously completing your own SAM.gov registration for future independent applications.
Note: Fiscal sponsorship is a legitimate and well-established practice. However, all federal grant awards require full compliance with 2 CFR 200 (Uniform Guidance). Always verify requirements on Grants.gov.