Sponsor Fee Allocation

Fiscal Sponsor Admin Fees

If your organization acts as a fiscal sponsor for other nonprofits, the Sponsor Fee Allocation tool automates the calculation and recording of administrative fees you charge each sponsored entity. No more manual spreadsheets at month-end.

How It Works

1. Set the fee percentage for each sponsored organization (commonly 5–15% of revenue)
2. Each month, Alignmint calculates the fee based on that entity's actual revenue for the period
3. Review the calculated fees in a summary screen
4. Confirm and post—Alignmint creates the journal entries automatically (Debit the sponsored org's account, Credit your admin fee revenue)

Fee Configuration

• Percentage-Based: Most common—a percentage of all revenue received by the sponsored org
• Flat Fee: A fixed monthly amount regardless of revenue
• Tiered Rates: Different percentages for different revenue levels (e.g., 10% on the first $50K, 8% above that)
• Per-Org Settings: Each sponsored entity can have its own fee arrangement

Monthly Review Process

At the end of each month, go to Tools → Sponsor Fee Allocation. You'll see a list of all sponsored entities with their revenue for the period and the calculated fee. Review for accuracy, then click "Post All" to create the journal entries in bulk.

Reporting

• Fee Summary: Total fees collected and outstanding by sponsored organization
• Revenue by Entity: See how much each sponsored org brought in
• Historical Fees: Track fee trends over time for each entity

Who Uses This

This feature is designed for fiscal sponsors managing multiple sponsored nonprofits on the Enterprise plan. It works alongside the Multi-Organization Management feature to keep each entity's finances completely separate while allowing consolidated reporting at the sponsor level.