It's easier to start a .org than you think.

Until recently, I thought that every “[name].org” was in reference to a registered nonprofit or 501(c)3 - similar to how a .edu is used in reference to an educational institution and .gov for a governmental agency. 

However, it’s actually nothing more than a domain name. Anyone can register for a “.org” these days. There are some for-profit organizations that hold .org domains - Classy.org, for example, is a company that offers an online and mobile platform that enables socially good organizations to raise funds for various causes. And although it operates in the nonprofit fundraising space, it is very much a venture-backed, for-profit organization. I could theoretically buy kasey.org today for the bargain price of $7,411! 

But that’s not the main point of my post. 

For companies wanting to participate in their own unique philanthropic efforts, or “.org” capabilities, many will create and manage their own nonprofit arm, usually via a foundation (with a 501(c)3 status). For example, Cotopaxi 🩳 has their own private foundation out of which they make grants to nonprofits fighting poverty (you can donate here in fact); benandjerrysfoundation.org 🍦 supports communities in Vermont; and the Starbucks Foundation ☕️ supports youth empowerment, inclusion, hunger relief and economic opportunity initiatives across the globe. 

However, starting a 501(c)3 is a long and cumbersome process, potentially taking up to a year just to get registered; and then you need to hire people to manage it and make public filings. It is no surprise that the wide majority of “startups” - or not yet public behemoths like Starbucks - avoid this path altogether (Cotopaxi, still a relatively early stage company, is an exception). 

But there is an often overlooked option that has recently gained momentum: Fiscal Sponsorship.  

According to MissionBox, Fiscal Sponsorship is a formal partnership between an established nonprofit and an individual or group that wants to carry out a new charitable project, but hasn't yet received 501(c)(3) status. The sponsor supports the new project, allowing it to fundraise and to benefit from the sponsor's oversight, management and administrative resources. 

OnDeck is a venture-backed, for-profit company that provides fellowship programs intended to accelerate ideas and careers of upcoming entrepreneurs; they also have a scholarship fund (called the “Access Initiative”) to support people who have the talent and drive to build great startups, but lack the typical background or resources to do so - kind of like their own mini .org. Instead of creating their own foundation to fund this initiative, they partnered with Impact Foundation, a fiscal sponsor, to collect tax-deductible donations on their behalf. 

Fiscal sponsorship is an efficient, accessible way for companies to engage in philanthropic efforts without the hassle of creating their own nonprofit. Tides.org and ImpactAssets are two fiscal sponsors that can help a startup achieve their philanthropic goals. 

And one of our favorite new platforms called GetRibbon.org to spin up a fiscal sponsorship within 48 hours, for a fraction of the price of the incumbents.