Ask an AI Accountant

Since your organization received the grant through a non-profit fiscal sponsor, it's typically the fiscal sponsor's responsibility to account for the grant funds on their own tax filings. The grant income is usually reported on the fiscal sponsor's Form 990 or another appropriate form, depending on the non-profit's tax-exempt status. Your organization may not need to report these funds as non-taxable income, as the funds are essentially managed and reported by the fiscal sponsor. However, it's essential to maintain clear financial records and documentation regarding the grant funds and how they were used, in case the need arises for verification. As every situation is unique, it's crucial to discuss your specific circumstances with your organization's tax professional to ensure accurate reporting and compliance with tax laws.