Definition of Fiscal agent:
Fiscal agents (or fiscal sponsors) are most often seen in the non-profit sector. Many non-profit organizations don't have a lot of experience managing the administrative aspects of a business, while others do not have the required 501(c)(3) status needed to legally operate one. In both cases, a fiscal agent can help by providing limited financial and legal oversight for groups and individuals. Those seeking a fiscal agent should do their homework, however, as the IRS rules governing such arrangements can be tricky.
A fiscal agent is an organization, such as a bank or trust company, that acts on behalf of another party performing various financial duties. A fiscal agent may assist in the redemption of bonds or coupons, handle tax issues, replace lost or damaged securities and perform various other finance-related tasks.
Person or firm (such as a bank) who, as a fiduciary agent of a principal, services debts, pays rents, distributes dividend payments, etc.
How to use Fiscal agent in a sentence?
- Because fiscal agents most often handle the finances of philanthropic organizations, the IRS has established strict guidelines in order so they maintain their tax status and do not break the rules.
- Often a bank or trust company, fiscal agents are often utilized by non-profits or charities who do not have the experience or capacity to handle certain financial duties unaided.
- A fiscal agent is a third-party organization that handles various financial and administrative duties on behalf of some other party.
Meaning of Fiscal agent & Fiscal agent Definition