HydroHarvestAbout Fiscal Sponsorship
What is fiscal sponsorship?
Fiscal sponsorship lets a project operate under an established nonprofit's 501(c)(3) tax-exempt status, without having to form and maintain its own nonprofit corporation. HydroHarvest offers two forms of this relationship: Model A (comprehensive sponsorship, where your project becomes a HydroHarvest program) and Model C (a pre-approved grant relationship, where your project stays its own legal entity and HydroHarvest re-grants funds to it). See our Model Comparison page for the difference.
HydroHarvest's Legal Responsibility
HydroHarvest is responsible for all funds raised under its EIN. Sponsored projects must operate exclusively for charitable, educational, or food-security purposes, and may not engage in political campaign activity, operate for private benefit or profit, conduct substantial lobbying, or run commercial ventures without a charitable distribution model.
HydroHarvest's discretion and control
HydroHarvest maintains discretion and control over all donated funds. This includes what's called [missing glossary term: “variance power”] — HydroHarvest's right to redirect a project's remaining funds to another charitable use if the project stops operating, changes direction away from its stated purpose, or doesn't meet its compliance obligations.
For Model C grant relationships, HydroHarvest also maintains an [missing glossary term: “anti-conduit safeguard”]: every grant reflects HydroHarvest's own independent charitable judgment, confirmed before any public fundraising for that project begins — not a donor's direction.
What we ask of sponsored projects
Sponsored projects submit regular activity and financial reports. For Model C projects specifically, this includes [missing glossary term: “expenditure evidence”] — documentation showing funds were actually used for their charitable purpose, not just a narrative summary.
What Is Not Allowed
- For-profit businesses
- Political organizations or PACs
- Religious proselytizing
- Projects primarily benefiting a single individual or family
- Commercial farming operations without a charitable distribution model
- Any activity inconsistent with HydroHarvest's mission
Projects with earned income may still be eligible, but undergo an additional review for [missing glossary term: “UBIT”] exposure.
Ready to see if your project is a fit? Start with our eligibility checklist, or go straight to the application.