What is Fiscal Sponsorship? Fiscal Sponsorship allows your non-commercial project to apply for funding from organizations that require non-profit status. Non-profit tax-exempt status is required by many foundations, corporations and government agencies in order to be eligible for funding since many do no accept application proposals from individuals. Additionally, 501(c)(3) status allows you to receive charitable deductible contributions from individuals—a major incentive for individuals considering making a donation to your project.