FAQ

SIMA is a 501(c)(3) tax-exempt nonprofit organization dedicated to supporting creative projects with cultural, civic, and social relevance. Contributions made through SIMA are tax-deductible to the extent permitted by law.

Approved projects may receive fiscal sponsorship, enabling them to raise funds through grants, donations, and philanthropic contributions, with SIMA providing oversight, compliance, and fund administration.

How can my project benefit from Fiscal Sponsorship?

Fiscal Sponsorship is an alternative fundraising and hybrid financing tool that broadens your funding options. Many individual donors, foundations, and corporate funders can only donate to an established 501(c)(3) nonprofit that can issue a tax receipt. Fiscal sponsorship allows you to apply for and accept this type of funding without establishing your own nonprofit.

What type of fiscal sponsorship does SIMA offer?

SIMA offers a Model C fiscal sponsorship arrangement, a pre-approved grantor-grantee relationship. This means SIMA can accept tax-deductible grants and donations on behalf of your project and disburse those funds to you as grants to fund your project.

Does SIMA fundraise on my project’s behalf?

No. You are responsible for raising funds for your project. SIMA does not fundraise or submit grant applications on your behalf. We provide the infrastructure to support your efforts, including a designated donation page, a featured project page on SIMA’s website, and periodic editorial support through our newsletter and social platforms.

If I find a grant that does not require a fiscal sponsor can I apply on my own?

Yes. You are free to pursue multiple sources of funding. If you qualify for a grant independently, you may apply for and accept those funds outside of your fiscal sponsorship arrangement with SIMA.

When should I apply for fiscal sponsorship with SIMA?

SIMA sponsors projects at any stage, including development, pre-production, production, post-production, distribution, exhibition, or campaign. Applications are open to projects that are actively fundraising or preparing to fundraise. A fundraising strategy is required.

FUNDRAISING REQUIREMENTS

We consider projects with a minimum fundraising goal of $50,000. Applicants must have at least $5,000 secured prior to applying, along with a fundraising strategy and a complete, itemized project budget.

Do I need to sign a contract with SIMA?

By submitting an application to be considered for Fiscal Sponsorship with SIMA, you agree to be legally bound by this fiscal sponsorship grant agreement. Please review it carefully before applying.

How long does the review process take?

Most applications are reviewed within 2 weeks. Priority review is available for time-sensitive projects.

How detailed and complete does my budget need to be?

You should submit a complete, itemized budget. Do not include line items marked “To be Determined” or “Unknown”. You may submit amendments as your project progresses. If you are applying for a specific stage only, such as development or distribution, your budget should reflect the associated costs.

My project is in the middle of a crowdfunding campaign. Can I still apply?

Projects need to be fully approved and onboarded before the start of your crowdfunding campaign. If you are already in the middle of a crowdfunding campaign, we are unable to fiscally sponsor your campaign. However, if you have additional donors who would like to donate to your project separately from your crowdfunding campaign, you can apply to facilitate those donations.

Can I apply for fiscal sponsorship with SIMA if I am not a U.S. citizen?

Yes. You do not need to be a U.S. citizen to apply for fiscal sponsorship with SIMA. However, our services would be most beneficial to you if you are seeking donations from entities in the United States. The tax receipt we provide to grant-makers or donors is only valid for entities with US tax residency. You will be responsible for reporting the donations in accordance with the laws of your country and should consult a local tax attorney to ensure accuracy.

CAN fiscal sponsorship assist with obtaining a u.s. visa?

Fiscal Sponsorship does NOT assist with obtaining a U.S. visa. It does not provide immigration status, nor does it influence visa eligibility with USCIS or consular officers.

DOES SIMA ACCEPT IN-KIND OR NON-CASH CONTRIBUTIONS FOR MY PROJECT?

Yes, depending on the nature of the contribution.

SIMA may issue tax receipts for certain non-cash, tangible goods donated directly to your project, such as equipment or office supplies. In accordance with IRS regulations, receipts will not assign a dollar value. Donors are responsible for determining the fair market value of their contribution and confirming deductibility with a tax professional. Project leads are responsible for tracking and reporting how donated goods are used.

Not all in-kind contributions qualify for tax receipts. SIMA cannot issue tax receipts for:

• Sponsorships (considered mutual benefit arrangements)
• Loaned or rented items, such as equipment or space
• Access to venues or property, which the IRS considers to have subjective value
• Consumables, including food, catering, or groceries
• High-value items such as airline tickets, vehicles, or boats
• Raffles or auctions
• Time, labor, or professional services

All in-kind contributions are reviewed on a case-by-case basis.

CAN I APPLY TO THE SIMA AWARDS?

As a fiscally sponsored project, you are welcome to submit to the annual SIMA Awards; however, eligibility, entry, or short-list selection is not guaranteed.

What fees are involved?

SIMA collects a 7% administrative fee on disbursements up to $250,000, with a sliding scale for larger amounts. For production companies or organizations fundraising for multiple projects within the same calendar year, a flat 5% fee is applied to each disbursement. If you anticipate raising more than $250,000, please contact us to discuss the graduated fee structure.

For disbursement processing, you may choose between receiving funds by check, mailed at no additional cost, or by wire transfer for a $30 fee. If you are collecting donations via crowdfunding platforms or PayPal, additional third-party processing fees will apply. All fees are clearly outlined prior to disbursement.

WHY DOES SIMA CHARGE AN ADMINISTRATIVE FEE?

The administrative fee supports the staffing, legal, and accounting infrastructure required to operate the fiscal sponsorship program. It also contributes to SIMA’s broader work across education and community engagement globally.

How does the disbursement process work?

Once funds have been received, you may request a disbursement at any time by contacting your SIMA representative. Disbursements are typically processed within 5–7 business days, though timing may vary depending on banking and postal systems.

Can I disburse funds into multiple accounts?

No. Each project must designate one legal entity and one bank account to receive disbursements. If you anticipate changes to this information during your fundraising period, please notify us in advance.

Does SIMA offer accounting services?

SIMA does not provide accounting services to individual projects. While we can answer general questions, our staff cannot offer tax advice. We strongly recommend working with an accountant or tax professional to manage your project’s finances and ensure compliance with IRS regulations.

Can SIMA pay contractors or vendors on my behalf?

No. Fiscally sponsored projects are responsible for paying contractors and vendors directly, including issuing any required tax documentation. SIMA only provides tax documentation related to donations.

What do I need to report to SIMA?

You are responsible for maintaining accurate and complete financial records for your project, and for reporting any significant changes to your budget. All fiscally sponsored projects must submit an annual report, including a brief update on project status, progress, and expenses. You will also be required to provide an itemized budget showing how funds received through SIMA were used. SIMA reserves the right to request additional documentation to verify project expenses. You are responsible for reporting all income, including funds received through fiscal sponsorship, to the IRS or the appropriate authority in your country.

Do I need to have a separate bank account to accept fiscal sponsorship funds or can the checks be made directly to me?

A separate bank account is not required, but it is strongly recommended. Maintaining a dedicated account can simplify financial tracking and tax reporting. Even if you are managing your project as an individual, you may be able to open a separate account for project use.

What tax documents will I receive from SIMA?

For U.S.-based projects, SIMA will issue a Form 1099-MISC to the project’s legal entity in January, reflecting all funds disbursed in the previous year.

When will donors get their tax receipts?

SIMA issues donor tax receipts in January, following the year in which the donation was made. If a donor requires a receipt earlier, it can be issued upon request.

I’m not a U.S. citizen. Can I still benefit from fiscal sponsorship with SIMA?

Yes. You do not need to be a U.S. citizen to apply for fiscal sponsorship with SIMA. However, our services would be most beneficial to you if you are seeking donations or are fundraising in the United States. The tax receipt we provide to donors is only valid in the United States. Please seek assistance from a local tax attorney to inform yourself about any potential withholding requirements.

Does SIMA accept donations internationally?

SIMA can accept international donations on behalf of your project. However, tax receipts or deductions are generally only available for U.S. donors, and in some cases Germany. If you anticipate donations from Germany, please contact us in advance, as additional documentation may be required.

Are the funds I receive through SIMA’s fiscal sponsorship program taxable?

Yes. Funds disbursed to your project are considered income and may be taxable for the project’s legal entity. You are responsible for reporting this income to the appropriate tax authority. For specific guidance, please consult a qualified tax professional.