❓ What if I want to start my own nonprofit later? Can I transfer my fiscal sponsorship and funds to the new nonprofit?

Yes—you can absolutely start your own nonprofit in the future, and in many cases, Pure Charity can help you transfer your project and remaining funds once your new organization is officially established and recognized by the IRS.

In fact, for many organizers, fiscal sponsorship is a great first step before forming a nonprofit. It allows you to build momentum, raise funds, and prove your impact before taking on the administrative and legal responsibilities of a 501(c)(3).

🔄 How does the transfer process work?

Here’s what typically happens when you're ready to transition:

1. Form Your Own Nonprofit
   You’ll need to form a legal entity (usually a nonprofit corporation in your state), apply for your own 501(c)(3) tax-exempt status with the IRS, and receive your IRS determination letter.

2. Notify Pure Charity
   Once your new nonprofit is approved, you’ll submit a formal request to transfer the remaining balance in your Donor Advised Fund to your new 501(c)(3).

3. Verification & Review
   We’ll verify your IRS determination letter, confirm that the new nonprofit’s mission is aligned with the original charitable purpose of the sponsored project, and ensure the transfer complies with IRS and charitable use regulations.

4. Fund Disbursement
   Once approved, Pure Charity can grant the remaining funds to your new nonprofit, and you’ll take over management of those funds and ongoing operations.

🧭 A few things to keep in mind:

• The funds must continue to be used for charitable purposes, consistent with your original project’s mission.
• We’re here to help you prepare for this transition when you're ready—including sharing guidance, timelines, and financial reporting best practices.
• You’ll still need to take on ongoing responsibilities like annual IRS filings, board management, and financial oversight once your nonprofit is established.

🌱 Starting with Fiscal Sponsorship, Growing into a Nonprofit

Using fiscal sponsorship with Pure Charity lets you test your idea, build your community, and raise funds confidently before going through the complex process of launching a standalone nonprofit. If and when you're ready to take that next step, we’ll help you make a smooth and responsible transition.