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Arts in Milwaukee

A Public Service Of Milwaukee Artist Resource Network

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Fiscal Receivership FAQ

Q: Does fiscal receivership allow the project to be absolved from tax reporting?

No. Contributions received and disbursed by MARN will likely be treated as income by the IRS. MARN will issue Form 1099-MISC for total payments over $600 during the calendar year to each project, except if the project is a corporation. Note that an LLC is treated as a partnership and not as a corporation. Consult a tax advisor to determine your specific liability.

Q: Why does the Fiscal Receivership program have an application process?

MARN must insure project activities are conducted according to IRS regulations and must establish discretion and control over the project and the contributions received. This is accomplished through an application process, internal procedures regarding grants, and a receivership agreement between MARN and the project to govern the relationship.

Q: Why does MARN need to establish discretion and control over a sponsored project?

Technically speaking, your donor has made a contribution to MARN with a recommendation that MARN grant this contribution to your project while also monitoring that their funds are put to proper use and that all tax-reporting requirements are met.

Q: Once I am sponsored by a fiscal receivership, have I become a non-profit?

No. Being sponsored at MARN does not make the project or company a tax-exempt organization.

Q: Does MARN Fiscal Receivership process in-kind contributions?

No. MARN Fiscal Receivership is not able to accept or grant a charitable gift letter for in-kind contributions such as donations of goods or equipment.

Q: Does the project retain its own legal identity if it has a fiscal receivership?

Yes. Your project is a separate legal entity and not a part of MARN. You retain creative control, ownership and responsibility for tax reporting and liability.