Model C - In a Pre-Approved Grant Relationship Sponsorship, the fiscally-sponsored project does not become a program of the sponsor, but is a separate entity responsible for managing its own tax reporting and liability issues. The sponsor provides the project the ability to apply for grants requiring 501(c)(3) status and receive tax-deductible contributions. The sponsor simply assures that the project uses the funds received to accomplish the ends described in the funding proposal.

Model F - This is a purely administrative service where the fiscal sponsor’s ability to receive tax-deductible contributions is not necessary. Under this model the fiscal sponsor can provide various professional business services, for example, accounting services, marketing, grant writing, and other back office services to another 501(c)(3) charity recognized by the IRS. Here, the fiscal sponsor lacks any discretion or liability over the spending of funds.