Infrastructure & Leader Support (ILS)
Values-aligned fiscal sponsorship (without the baggage).
HNC's Infrastructure & Leader Support (ILS) program is a values-aligned approach to Fiscal Sponsorship that enables nonprofits to receive philanthropic funding. Our unique approach to fiscal sponsorship also frees up organizations to run things the way they want to because the ILS program was designed by nonprofit leaders, for nonprofit leaders (particularly leaders of color). We mention this because often, nonprofit leaders tell us that it sometimes feels like other fiscal sponsors set things up more for their own benefit than for the nonprofit’s.
Wait, what is fiscal sponsorship?
In general, unless an organization has 501(c)3 status with the IRS, they cannot accept tax-deductible funding from foundations or individuals. It’s important to understand that not all nonprofits have a 501(c)3 status, some are ‘nonprofit corporations’ which are still legal entities formed for a charitable purpose but aren’t exempt from tax.The term “fiscal sponsor” refers to an organization (like HNC) that does have this status with the IRS and “shares” that status with other organizations to help them gain access to philanthropic funding - of which there is about $500 billion dollars in the United States each year. Many fiscal sponsors also provide operational infrastructure like payroll, benefits, accounting, taxes, etc. As you might guess, this summary is way oversimplified, but the basic idea is there.
How ILS Works
1
Set Up Infrastructure
First, we set up all of the things you'd rather not spend hours figuring out: payroll, accounts, benefits, taxes, bank transfer systems, and some other stuff.
2
Automate Systems
We get you up to speed so you have the control over yours systems that you want, but without the hours of maintenance you don’t.
3
Sleep at Night
Finally, you can rest easy knowing that everything is taken care of. Leaders often tell us that they feel like a weight was lifted off their shoulders!
For more information on ILS, check out this 2-page info sheet!
FAQs
How Much Does ILS Cost?
Most fiscal sponsors charge 10-20% of an organization’s income each year. Not HNC.
ILS costs between $8k - $10k/year flat, depending on a few factors, and it actually gets cheaper after the first year. If you’d like to know a specific price for your organization, click the 'Learn More' button below. But don’t let cost stand in the way. The whole reason that HNC created the ILS program was to solve issues of equity and access for community-focused organizations (especially those led by people of color), so we never want price to be a barrier.
What exactly is ‘infrastructure?’
For a nonprofit, its the things that keep you running as an organization: your ability accept funding, your accounting system and your HR platform come under this category. A solid infrastructure is important because it allows your organization to run efficiently, allowing you to focus on the most important things: your programming and serving your community.
Why is ILS so much cheaper than other Fiscal Sponsors?
Many fiscal sponsors employ large teams of full-time accountants, legal, benefits, and other ops specialists specialists. Instead, we set up largely automated operational systems and put our accountants, attorneys, and other ops professionals to work on only the things we really need them for…which means you only pay for what you use.
How long does it take to get Fiscally Sponsored?
Roughly 4-6 weeks, after we know we’re a good fit. It depends on where your organization is at but the process typically involves getting your organization incorporated as a nonprofit organization and setting up your insurance, accounting, and HR systems.
What happens if I already have a Fiscal Sponsor?
It depends on the current agreement that you have but, if you choose to, we’d work alongside you to get your Fiscal Sponsorship arrangements transferred over. This would include transferring your accounting systems and setting up benefits if necessary.