Tiny News Collective offers discounted fiscal sponsorship to LION members

*This post was originally published on April 5, 2023, and updated on January 23, 2026, to include new and refreshed information.

One of the benefits of being a 501(c)(3) nonprofit news organization in the U.S. is the ability to accept tax-deductible donations from foundations and other philanthropic givers. For organizations that have chosen to be for-profit (including many LION members) and new nonprofits waiting on their 501(c)(3) status, a fiscal sponsor can receive those donations on their behalf.

LION members can take advantage of discounted fiscal sponsorship as a member benefit through Tiny News Collective, which provides tools, resources, and expertise to help communities build sustainable news organizations.  

To get started, apply here. (If you are not currently a LION member, you can learn about LION’s membership criteria and apply to join here.)

The discounted fiscal sponsorship fee for LION members is 5% of all program grants and donations received (plus an initiation and annual administrative fee of $300). Upon signing a fiscal sponsorship contract with TNC, you would also pay an initial administrative fee of $300 and then a recurring annual administrative fee of $300. As a fiscal sponsor, TNC will accept grants and distribute payments, working with you to ensure proper documentation of payments for funders.

Tiny News Collective is fully committed to supporting the editorial independence of its fiscally sponsored projects.

If you’re interested in taking advantage of this membership benefit or learning more about how fiscal sponsorship can benefit your organization, feel free to reach out to Tiny News Collective at fiscalsponsorship@tinynewsco.org. Please put “Fiscal sponsorship request – LION” in the subject line.

Find answers to some frequently asked questions about fiscal sponsorship below. If you have additional questions about this member benefit, please email membership@lionpublishers.com.

FAQ

What is fiscal sponsorship?

Fiscal sponsorship is a practice that has evolved as an effective and efficient means of funding new charitable initiatives, delivering public services, and seeding social movements. In a typical fiscal sponsorship relationship, a nonprofit organization confers its 501(c)(3) tax-exempt status to groups that are engaged in activities that serve the host’s mission, typically for a fee. 

Donations to the projects are directed to the fiscal sponsor and are restricted by the fiscal sponsor to support activities of the project, and fiscal sponsor organizations are responsible for assuring the activities of the project fulfill their charitable purpose.

How does Tiny News Collective provide fiscal sponsorship?

Tiny News Collective provides a legal framework for their “Model C” fiscally sponsored projects and enables the movement of resources from funders and donors to projects.

What will fiscal sponsorship from Tiny News Collective cost my organization?

The discounted fiscal sponsorship fee for LION members is 5% of all program grants and donations received. For example, if your business receives a $25,000 grant, $1,250 (5%) of that grant would go to Tiny News Collective as the fiscal sponsor.

This fiscal sponsorship service is available to both for-profit LION members and members that are seeking, but have not yet received, a nonprofit designation from the IRS.

Why is fiscal sponsorship beneficial?

Fiscal sponsorship can provide: 

• Access to tax-deductible donations and grants that might not otherwise be available. Setting up a new nonprofit organization can be a time-intensive and expensive process, involving legal fees, paperwork, and other expenses. By working with a fiscal sponsor, organizations can avoid many of these costs and administrative burdens.  
• Administrative support and financial oversight directly related to managing the funds in the fiscal sponsorship
• Credibility for a new project or organization by associating with an established nonprofit organization.
• Fiscal sponsorship can provide a quick and easy approach to starting a new project or testing a new program without having to go through the lengthy and expensive process of forming a nonprofit organization.

Is fiscal sponsorship right for my organization?

Fiscal sponsorship is not a one-size-fits-all solution. You’re encouraged to reach out to Tiny News Collective at fiscalsponsorship@tinynewsco.org to discuss what option might be best for you. Please put “Fiscal sponsorship request – LION” in the subject line.

Here are some additional resources from LION:

• 5 Tips for Choosing a Fiscal Sponsor for Your Newsroom
• Non-Profit vs. For Profit: Which One is Right for You?