By Jasemen Hatcher, Program and Grantmaking Manager for Together Women Rise 

When we hear about nonprofits doing incredible work—delivering clean water, improving maternal health, or training young women in entrepreneurship—we often imagine large, well-established organizations. But many life-changing initiatives begin with a small team, a bold idea, and limited resources. For these emerging groups, especially those based in the Global South, getting access to international funding can be a steep climb. 

Enter fiscal sponsorship—a practical solution that opens doors. 

Together Women Rise occasionally funds Featured Grants through a fiscal sponsor—after carefully reviewing both the applicant and their sponsor to ensure transparency and alignment. In order to be eligible for a Together Women Rise Featured Grant, applicants must be registered as a U.S. 501(c)(3) nonprofit organization OR have a fiscal sponsor which is a U.S. 501(c)(3) corporation.  

What is Fiscal Sponsorship? 

At its core, a fiscal sponsor is a nonprofit organization that allows another project or group to operate under its legal and tax-exempt status. It’s like a nonprofit “umbrella” that helps you get started while ensuring you meet financial and legal standards. 

While some organizations are now using fiscal sponsorship as a longer-term solution, it’s typically intended as a temporary arrangement—allowing projects to operate under a sponsor’s 501(c)(3) status in the U.S. while they build toward becoming independent nonprofits. This means you can receive funding, build credibility with donors, and get support with things like accounting and reporting while increasing your efficiency. 

Since joining Together Women Rise in February, I’ve already seen how transformative fiscal sponsorship can be. I’ve encountered inspiring applications from grassroots organizations doing meaningful work—many of which wouldn’t have been eligible for our Featured Grants without the support of a fiscal sponsor. RHEST (Rural Health & Education Service Trust in Nepal), a grassroots organization in Nepal and a 2025 Featured Grantee, was able to access Rise funding by working through a fiscal sponsor. The sponsor provided compliance and back-office support, enabling RHEST to focus on its programmatic work. 

 This model has opened doors for them to access funding, amplify their impact, and bring their visions to life in ways that would otherwise be out of reach. 

How Does It Work? 

Think of it as a partnership. The sponsored group focuses on programming and impact. The fiscal sponsor handles administrative tasks like compliance, financial oversight, payroll and fund management to name a few. This arrangement typically involves a fee-based contractual arrangement between the established nonprofit and the project. 

This structure can be especially useful for:  

• Grassroots organizations without U.S. charitable status  

• Pilot initiatives testing new models 

• Community-led projects in regions where legal frameworks are complex or inaccessible 

Why It Matters for Global South Organizations 

In today’s landscape of shrinking global aid and rising barriers to funding, fiscal sponsorship offers a critical bridge. It allows local leaders—especially women and girls—to gain access to funding streams that would otherwise be closed off. 

Many groups in the Global South face structural hurdles such as complex banking systems, limited digital infrastructure, and political or legal constraints. Fiscal sponsorship helps them leap over these barriers. It’s a practical, nimble tool that gives credibility, builds networks, and ensures funders like Rise can trust that funds are well-managed. 

And let’s not forget the human impact. The mentorship, back-office support, and reporting guidance that a sponsor provides can be the difference between a good idea and a sustainable program. It allows our partners to focus on outcomes—like building schools, defending legal rights, or supporting women entrepreneurs. 

A Growing Practice 

According to a 2023 report by Social Impact Commons and the National Network of Fiscal Sponsors, nearly three times as many fiscal sponsors were established in the past 20 years than in all previous decades combined. These sponsors support over 12,000 charitable projects worldwide, representing $2.6 billion in philanthropic funding. 

Organizations surveyed included teams working at local (53%), national (38%), and international (9%) levels—demonstrating just how widespread and adaptable this model has become. 

Final Thoughts 

At Together Women Rise, we’re committed to equitable grantmaking. Fiscal sponsorship helps us live out that value by funding grassroots organizations doing meaningful and necessary work in their local communities, often unsung work. 

As the global funding environment continues to shift, this model becomes not just an alternative solution—but a vital channel for inclusion, access, and impact.