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The Hidden Engine Behind Collaborative Philanthropy: Fiscal Sponsors

Aug 1, 2025

Fiscal sponsors provide operational infrastructure for funder collaboratives to accelerate social change.

In recent years, collaborative funds have emerged as one of the most promising vehicles for advancing equity, justice, and systems change. A landscape scan of this fast-growing field by Bridgespan noted 35% of collaborative funds are fiscally sponsored or hosted collaborations. For example, Wildseeds Fund - a collaborative fund in Kansas that aims to protect food and agricultural systems – uses a fiscal sponsor to manage their collective funding operation. According to a 2024 report by Ganguli Associates funder collaboratives now deploy between $4–7 billion annually with more than 400 active funds operating globally. Yet, as the report makes clear, the success of these efforts hinges not just on pooled capital—but on the infrastructure that supports it.

The Infrastructure Gap

Ganguli’s report, Strengthening and Supporting the Enabling Infrastructure for Collaborative Funds, identifies a critical blind spot: while funders are increasingly eager to collaborate, many underestimate the operational complexity of doing so. From grant administration and legal compliance to financial reporting and HR, collaborative funds require a robust back-end to function effectively.

Yet, many collaboratives are launched without a clear plan for how this infrastructure will be built or sustained. The result? Delays, inefficiencies, and burnout among the very leaders these funds aim to empower.

Fiscal Sponsors: The Unsung Heros

This is where fiscal sponsors like Evergreen Social Impact (ESI) come in. As a nonprofit dedicated to providing shared infrastructure for mission-driven initiatives, fiscal sponsors can help collaborative funds:

  • Launch quickly without waiting for IRS 501(c)(3) status
  • Manage grants and donor funds with full compliance and transparency
  • Support community-led governance through participatory grantmaking models

In short, sponsors provide the enabling infrastructure that Ganguli’s report calls for—so funders and community leaders can focus on strategy and impact, not administration.

A Call to Action for Funders

The Ganguli report urges funders to invest not only in the “what” of collaboratives, but in the “how”. That means:

  • Budgeting for infrastructure from the start
  • Partnering with experienced fiscal sponsors
  • Recognizing that operational support is not overhead—it’s mission-critical

When Infrastructure is Strong the Pacific Northwest Thrives

The Pacific Northwest is home to some of the most innovative and equity-focused philanthropic efforts in the country. As funders in the region explore new collaboratives—whether focused on climate justice, housing, or racial equity - Evergreen Social Impact has the infrastructure and expertise to help the Pacific Northwest thrive.

Whether you're launching a new collaborative fund, reimagining an existing effort, or seeking a more sustainable approach to managing operations, Evergreen Social Impact’s fiscal sponsorship can provide the necessary infrastructure and flexibility to help you succeed.

At Evergreen Social Impact, we take pride in offering hands-on, values-aligned support to a select group of mission-driven, social impact Sponsored Partners. With deep expertise in nonprofit operations and a strong track record of managing complex public funding, we’re here to help you stay focused on what matters most: creating a better society in your community.

Ready to explore if fiscal sponsorship is the right fit for your work? Get in touch with us — we’d love to start a conversation.

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