As a fiscal sponsor, we are legally responsible for the funds received on behalf of your sponsored project. We must insure that the project uses the funds for charitable activities in accordance with the agreed upon terms between the donor and your project, and that the donor reporting requirements are met by the project in a timely fashion. In order to do this, we set up financial and database files to keep track of your project, acknowledge contributions to donors for tax purposes, and prepare End-of-the-Year reports.  Our accountants also must audit your files and we must pay them to do that. The 6% fee we charge for all grants, with the exception of the National Endowment for the Humanities (for which we charge 5%) and State Humanities Council grants (for which we charge 7%), is below the industry standard of 7-10%. As a result, the administrative fees barely cover the cost of running the program.