Fiscal Agent - it is an external organization acting as a broker of the site (Office of the Federal Register 2013, s. 64176). "When lawyers talk about agency, they are talking about situations in which an agent acts on behalf of someone, usually called the principal. The agent is under the principal's direction and control" (J. Nober 2010, s. 1). The agent can be, for example, a bank or a trust company. The agent's task is to help in the purchase of bonds or coupons, dealing with tax matters, the redemption of bonds, replacing lost or damaged securities. All of his tasks are related to finance and administration. Fiscal agents are usually employed by charities or non-profit organizations. They do not have participation or the competence to independently carry out certain economic accountability. Due to the fact that fiscal agents are often employed by charities to deal with their finances, the IRS has set very harsh regulation, so that tax status is kept and all rules are not broken (Office of the Federal Register 2013, s. 64176).
Fiscal Agent versus Fiscal Sponsor
Very often "fiscal agent" and "fiscal sponsor" are used mutually. However, they don't mean the same thing. There are crucial differences separating these two items. The main difference applies "depends on which entity holds variance power over the applicable funds". Variance power is described as having analogous unrestricted power how assets are used. Below are the main characteristics of both representatives (Fiscal sponsor vs financial agency 2017): Fiscal Agent
- Funds for the fiscal agent are received on behalf of the program, the agent is fully responsible for the doping by the funds were used for a charitable purpose in accordance with the purpose.
- Accepting funds, the fiscal agent does not bear control for the funds received. This is a temporary relationship.
- For services may expect the earned fee, because the costs and revenues of the project are separate from the activities of the charity.
- Donations for the project cannot be deducted from the former tax, although the project has no charity exemptions.
- Funds for the fiscal sponsorship are received on behalf of a charity project. The fiscal sponsor is s trying to make the funds spend on a charitable purpose.
- "Sponsorships are cheaper, faster, easier and more efficient than setting up a seperate".
- The sponsoring organization is exempt from tax has the highest authority in terms of available funds, it is necessary to recognize temporarily the available revenues at the time of receiving the funds, and then to recognize and distribute the costs depending on the coverage.
- Fiscal sponsorship is for future sponsors who are not always willing to invest in new projects, a trustworthy project. Donations from investors are deducted from the donor's tax.
- Fiscal sponsor vs financial agency (2017), Jones & Associates LLC
- Nober J. (2010), Fiscal Agency versus Fiscal Sponsorship, Council on Foundations
- Office of the Federal Register (2013), Federal Register, Tom 78,Wydanie 208, National Archives and Records Service, General Services Administration
- Oceana Editorial Board (2011), CTIA: Consolidated Treaties & International Agreements 2010 Vol 2: Issued October 2011, OUP USA s. 327
Author: Sandra Kaczara