Fiscal sponsorship

How to use fiscal sponsors for your XR group

A fiscal sponsor is a legal entity that holds money on behalf of a project / local group / working group that doesn't have a legal entity. It allows you to focus on fundraising and spending the money without having to worry about setting up and maintaining a legal entity which can be tiresome.

It depends. If you are just collecting a few hundred quids / dollars / euros, you probably don't need one. It's fine to collect that on a rebel's bank account (or better, create a new bank account with multiple signatories).

If you plan to collect thousands, it can become a problem as this will be considered as personal income for which you can be taxed. It may also raise a trust issue within the community. In those cases, it's better to have a legal entity that can hold the money on behalf of the community. It could be an entity that you create yourself with a few other rebels (that will effectively act as a fiscal sponsor for the group), or it could be an existing one that will offer that service for you. We are listing below a few of those entities.