I get the opportunity to meet many bloggers who are passionate about social good. One of the most common questions is: “Do I need a 501c3 to get started?”

The answer to that question depends on your goals. Do you want to:

1. Raise money for an existing charity.
2. Start your own organization.

If you want to raise money for an existing charitable organization, you do not need your own 501c3. If you just want to encourage your readers to donate to a specific charity, it’s easy to link to the charities website or to provide donation information. If you’d like to get more involved, contact the charity and ask if you can volunteer or organize a fundraiser on its behalf.

If you want to start your own organization, determine if the organization will have fundraising needs. If you want to ask others to donate or apply for most grants, you will need either a 501c3 status for your organization or a fiscal sponsor.

If your organization/cause  has no expenses (for example: it consists of you organizing a monthly blog carnival or regular Twitter discussion using a specific hashtag), you may not need either a 501c3 status or a fiscal sponsor.

You might be wondering what a “fiscal sponsor” is.  A fiscal sponsor is a 501c3 that lends their legal status to your project. Obtaining and maintaining a 501c3 status is a lot of work. It requires a board and often an accountant, and it can be expensive to get started.

If you have a great idea but lack the funds to pay start-up costs, a “fiscal sponsor” may be the best option. There are different kinds of fiscal sponsorship: “projects” and separate entities. If you are incorporated/registered, you could qualify as a separate entity. Otherwise, a “project” may be a good option for you. You will want to define a formal agreement with your fiscal sponsor regardless. To learn more about “fiscal sponsorship,” check out the Fiscal Sponsorship Directory.