Fiscal Sponsorship for Parkour Events

Fiscal sponsorship is a legal agreement between a nonprofit organization and project organizers. Starting 2024, USPK will offer sponsorship specifically for parkour jams, conferences, and other non-competitive events.
Non-competitive events are the backbone of parkour culture, and as the national governing body, USPK seeks to provide resources to support the leadership of jams and events. Sponsorship benefits the event in a handful of ways, including providing insurance coverage, recognition as a nonprofit entity under USPK’s umbrella (providing tax deductions to donors, and ability to apply for grants), plus handling backend administrative tasks such as basic bookkeeping, some event promotion, and handling registrations.

While most parkour events operate informally, this is an opportunity for event organizers interested in running a more professional event. It’s projected that USPK can handle up to 5 sponsored events in 2024.

Benefits include:

  • Participant Event insurance provided at $5/day per attendee
  • Recognition as a nonprofit entity under USPK’s fiscal sponsor umbrella
  • Paperwork for volunteers, eg. documentation of hours, parent/guardian consent form for minors
  • Assistance with fundraising, and donations are tax-deductible
  • Ability to apply for grants only available to nonprofits
  • All federal and state tax filings (990s and 1099s) handled
  • Accounting and bookkeeping service, financial reports (profit & loss statements) available as requested
  • Usage of USPK’s registration and fundraising software
  • Front costs for location rental and/or permits, with repayment agreement (eg. from ticket sales and/or funds raised)
  • Marketing on USPK’s social media, website, and email newsletters
  • Overall professionalization of services and stamp of credibility
  • Potential for long term partnership with USPK

Frequent Asked Questions

When is the right time to approach a fiscal sponsor?

The best time for a project to approach a fiscal sponsor is after having developed a functional program plan and after having researched viable funding options but before soliciting funders and foundations for donations. Having a clear mission, advisory board and action plan in place will expedite your application to work with a fiscal sponsor. In turn, having a relationship with an established fiscal sponsor prior to opening a conversation with a funding source will demonstrate to the funder that the infrastructure is already in place to put the funding to use immediately, which will lend credibility to the project effort and streamline the fundraising process.

What are the Event Organizer’s responsibilities?
  • Develop budget for review and approval by USPK
  • Decide if the event will do ticket sales and/or fundraising
  • Create event swag as needed, determine what event swag goes to what tier of donors
  • Create, update, and maintain event website and social media
    • Post link to the digital waiver and registration form
    • Share fundraising campaign on social media, Facebook event and event website
    • Provide USPK with the event logo, event website URL, facebook event URL and any marketing photos/graphic design
  • Handle email communications with participants (answering questions, etc.)
  • Handle housing for out-of-towners as needed
  • Create event schedule
    • Organize any speakers, teachers, and volunteers for the event
    • Schedule event location
      • Let USPK know if need to list the location as additional insured
  • Make individual donor asks
  • Ensure all participants have a digital waiver signed
  • Organizing and supervising activities during the event
  • Take photos and videos of activities
  • Manage volunteers
  • Hand out event swag
  • Clean up locations before and after
  • Follow through with any other location/permitting agreement needs
  • Provide USPK with photos of the event, after the event
  • Call and thank major event donors, as needed
  • Provide USPK with a list of all attendees (first name, last name, email address)
Why does USPK need to oversee the work of the project?

USPK’s Board of Directors accepts significant financial and legal liability when it embraces a project under its 501(c)3 designation. As the fiscal sponsor, USPK’s Board of Directors is required to set expectations and monitor the project’s activities.

Do the funds I raise for my project belong to me or to USPK?

All funds received and raised by the sponsored event for the express purpose of operating the project are the property of USPK. This is because tax-deductible donations must be given to a 501(c)(3) organization. Funds raised for the project are the property of the Sponsored Organization only as an operating unit of USPK. The disbursement of funds to cover expenses of the project is subject to the approval and review of the USPK Board of Directors or their designee. Under the fiscal sponsor agreement, USPK is obligated to restrict those funds to the Sponsored Organization with the exception of administrative expense fees used to cover shared costs for the projects and programs of USPK. Projects are required to submit an operating project budget which must be received prior fundraising and disbursement of funds.

If the fiscal sponsor is the recipient of donations and grants, how does the project maintain control of its funding?

While a Sponsored Organization is not a separate legal entity, it is distinguished by its name and purpose. Funding received for the event is restricted for the purpose of engaging in the activities of the specific project as stated in its mission and as approved by the USPK Board of Directors. Project funding received from grants is also restricted by the conditions under which the grant was made.

How do I get reimbursed or invoices paid?

Submitting your disbursement requests electronically is the fastest way to receive your reimbursement or an invoice paid. All requests for disbursements must be made in writing. A disbursement form with receipts or invoice attached should be emailed to USPK for processing. The disbursement form must be approved by a designated person authorized to represent Sponsored Organization as specified on the fiscal sponsor agreement.

How do I deposit funds?

Once funds have been received, whether through outreach or a fundraiser, they need to be transmitted to USPK. Contact the USPK Treasurer for instructions. Once the funds have been received by USPK, they will be deposited and entered into our accounting database. You can then begin submitting project expenses for reimbursement or payment. 

How much does fiscal sponsorship cost?

Sponsorship costs 5-15% of total revenue (minimum $200). The exact amount will be agreed upon during the application approval process. When applying for grants, be sure to include fiscal sponsorship costs in your budget.