The Lead Partner on a proposed project is responsible for submitting the application to FAJE and will be the recipient of grant funds if selected for support. There are financial implications to be considered by Lead Partners awarded grants through the program that are not legally incorporated as nonprofit organizations in their respective countries.
For American Lead Partners:
American Lead Partners who are individual artists or ensembles that are not incorporated as a nonprofit organizations under Section 501(c)(3) of the Internal Revenue Code may want to consider using an United States-based fiscal sponsor with 501(c)(3) nonprofit status to apply on their behalf. American Lead Partners without nonprofit status that are awarded funds through FAJE and do not utilize a fiscal sponsor will be responsible for all applicable United States taxes related to the grant. FAJE grant funds cannot be used towards payment of grant-related taxes. If the Lead Partner uses a fiscal sponsor, the fiscal sponsor would be the recipient of grant funds.
- Fiscal sponsors that are willing to assume full responsibility for the grant may sponsor one or more organizations that do not yet have their own nonprofit Internal Revenue Service 501(c)(3) status but otherwise meet the criteria for eligibility.
- The fiscal sponsor will be legally, financially, administratively, and programmatically responsible for all aspects of the award. As the official grantee, the fiscal sponsor will be the organization that must submit all documentation, final reports, and any amendment request that would affect the terms and conditions of the award.
For French Lead Partners:
United States law requires that payments to non-United States citizens be subject to a 30% withholding tax, unless the payee obtains a United States Tax Identification Number. French Lead Presenters may want to consider applying to the program through a fiscal sponsor or a French nonprofit organization, such as Association Loi 1901. If a grant is awarded, payments will be made to the fiscal sponsor or nonprofit organization and not the French Lead Partner.
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