We are fiscally sponsored by Manifund and just waiting for the IRS to process our 501(c)(3) application (which could still take several more months). So, for the donor it’s all the same—we have 501(c)(3) status via Manifund, and in exchange we give 5% of our income to them. Sometimes these arrangements are meant to be indefinite, and the fiscal sponsor does a lot of administration and handles the taxes and bookkeeping. PauseAI US has its own bookkeeper and tax preparer and we will end the fiscal sponsor relationship as soon as the IRS grants us our own 501(c)(3) status.
Additionally, we’ve applied for 501(c)(4) status for PauseAI US Action Fund, which will likely take even longer. Because Manifund (and PauseAI US, in our c3 application) have an election h, we are able to do lobbying as a c3 as long as it doesn’t exceed ~20% (actual formula is more complicated) of our expenditures, so we probably will not need the c4 for the lobbying money for a while, but the structure is being set up now so we can raise unrestricted lobbying money.
Is PauseAI US a 501(c)(3)?
We are fiscally sponsored by Manifund and just waiting for the IRS to process our 501(c)(3) application (which could still take several more months). So, for the donor it’s all the same—we have 501(c)(3) status via Manifund, and in exchange we give 5% of our income to them. Sometimes these arrangements are meant to be indefinite, and the fiscal sponsor does a lot of administration and handles the taxes and bookkeeping. PauseAI US has its own bookkeeper and tax preparer and we will end the fiscal sponsor relationship as soon as the IRS grants us our own 501(c)(3) status.
Additionally, we’ve applied for 501(c)(4) status for PauseAI US Action Fund, which will likely take even longer. Because Manifund (and PauseAI US, in our c3 application) have an election h, we are able to do lobbying as a c3 as long as it doesn’t exceed ~20% (actual formula is more complicated) of our expenditures, so we probably will not need the c4 for the lobbying money for a while, but the structure is being set up now so we can raise unrestricted lobbying money.