Research Library › Belden Woodshop

Fractured Atlas Fiscal Sponsorship

Current Research · 2026 Belden Woodshop

BW qualifies, $0 to apply, 8% fee. Unlocks DCASE NAP ($5-50K), CCT, MacArthur/Field.

Key Data Points

$0 to apply
8% fee on funds received
2-week processing
Unlocks DCASE NAP, CCT, MacArthur, Field
Enables tax-deductible donations
Minimal risk -- no cost until funds flow

FRACTURED ATLAS FISCAL SPONSORSHIP — DEEP RESEARCH

Prepared for Belden Woodshop / JLF Projects

March 3, 2026

---

EXECUTIVE SUMMARY

Fractured Atlas fiscal sponsorship is a viable and recommended path for Belden Woodshop's education program. The program qualifies under FA's broad definition of artistic work, and the Model C structure cleanly separates the education mission from JLF's commercial operations. The 8% fee on donations is reasonable, and the real value — access to tax-deductible donations and grant eligibility — significantly outweighs the cost. However, class fees and workshop tuition cannot flow through the FA fund (they are earned income, not donations), so FA sponsorship is specifically useful for grant funding and charitable donations, not for processing the education program's core revenue.

The strongest recommendation: apply to Fractured Atlas now for the Belden Woodshop education program, while simultaneously pursuing the individual artist grants (IACA Creative Accelerator, DCASE IAP, 3Arts) that don't require nonprofit status at all. The two strategies are complementary, not competing.

---

1. APPLICATION PROCESS

What the Application Looks Like

The application is submitted online at fracturedatlas.org and takes approximately 30-45 minutes to complete.

Required information:

Personal name, address, phone number
Name of the legal entity responsible for tax obligations
Either SSN (for individuals) or EIN (for legal entities like LLCs or S-Corps)
Residency status of the legal entity

Key questions the application asks:

Project description — what you do AND why (mission vs. activity distinction is critical)
Audience — who will interact with or experience your work
Budget — annual estimates if the project is ongoing; doesn't need to match their template exactly
Whether your project involves political activity or lobbying
Whether you have investor relationships or commercial distribution arrangements
Geographic locations where you'll fundraise and spend money
Whether you've previously had or applied for 501(c)(3) status
Timeline — is this a one-time project or ongoing work

Application tips from FA staff:

Clearly distinguish your mission (the change you want to make) from your activities (how you do it)
If your work isn't obviously in the arts, make the case — FA is receptive to non-traditional definitions
Most flagged questions aren't automatic rejections — FA wants applicants to succeed
Set up your online profile before receiving approval to be ready immediately upon acceptance

Review Timeline

Applications reviewed on an ongoing basis — no submission deadline
Standard response: within 10 business days
Some applications require additional Board of Directors review: up to 6 weeks
Rush service available (fee not specified in public materials)
Once approved, expect to be up and running within 1-2 weeks of submission

Pre-Approval Membership

FA requires membership before applying for fiscal sponsorship:

Professional membership: $10/month (1 user)
Organizational membership: $20/month (up to 3 users, $2.50/month each for additional)

Sources:

---

2. ELIGIBILITY CRITERIA

The Three Requirements

1. Your project must be artistic — FA is "very broad in its criteria of what defines art" and the review process is "not curatorial." They do not judge artistic quality. They believe in providing equal access to funding through fiscal sponsorship for as many artistic projects as possible.

2. Your project must have public benefit — By law, charitable activities must provide some benefit to the public. FA asks who will interact with or experience your work and how you'll distribute it.

3. Your project must be non-commercial in nature — The project cannot be "produced for commercial gain." This is the criterion that requires the most careful framing.

How Strictly Is "Non-Commercial" Interpreted?

This is the critical question for Belden Woodshop.

FA's interpretation is more nuanced than it appears. "Non-commercial" means the project itself is not structured to generate private profit. It does NOT mean:

You can't charge admission to events (you can — FA has ticket-selling tools)
You can't have earned income from your artistic practice (you can — but that income is managed separately, not through the FA fund)
You can't operate a for-profit business alongside a sponsored project (you can — thousands of FA-sponsored artists do exactly this)

What it DOES mean:

The FA-sponsored project cannot be a vehicle for private enrichment
Donations and grants flowing through FA must be used for the charitable/educational mission
If investors or profit-sharing arrangements exist, FA requires an additional addendum to the agreement

Does Craft Education Qualify?

Yes, with high confidence. FA explicitly states: "If your work isn't obviously in the arts but you think it's still a good fit, let us know. If the creative and artistic aspect of your work is more about the process than the result, you can lay out the case."

Community woodworking education — teaching craft skills, preserving traditional joinery techniques, providing public access to professional tools and instruction — fits squarely within FA's mission. The Belden Woodshop program has clear public benefit (community education, skill-building, cultural preservation) and is not produced for commercial gain (the classes serve the community, not JLF's bottom line).

FA sponsors 4,000+ projects including craft-adjacent work. One approved project example: Bushakan, which makes individually crafted hardwood glasses stands. Craft is not a stretch.

Comparable Programs

Dallas Makerspace — 501(c)(3) nonprofit community workshop, 36,000 sq ft
Open Works (Baltimore) — Nonprofit makerspace founded 2016, rebuilding manufacturing economy through maker education
Make Nashville — Nonprofit makerspace, 12,000 sq ft of workshops
School Factory — Has provided fiscal sponsorship to over 75 collaborative maker spaces and hands-on learning communities

Sources:

---

3. FEE STRUCTURE

Administrative Fee: 8% on All Donations

Flat 8% on all contributed revenue (donations, grants)
No additional credit card processing fees
Covers: website maintenance, staff time, bank fees, tax receipts, donor management
In certain cases, additional fees may apply for grants administration
If FA is charged a fee by a vendor on your behalf (e.g., returned check fee), they pass it through

Membership Dues (Required)

Professional: $10/month
Organizational: $20/month (up to 3 users)
Annual cost: $120-$240/year

Grant Application Review Fees

When submitting grants through FA, they must review all proposals:

Standard review: 10 business days, no additional cost
Rush review: 5 business days, $75 fee
Expedited review: Next day, $250 fee

Does FA Take 8% of Grants?

Yes. The 8% administrative fee applies to all donations AND grants received through the fund. If Belden Woodshop receives a $10,000 grant through FA, $800 goes to FA and $9,200 goes to the project.

What the 8% Buys You

501(c)(3) umbrella status for grant applications
Tax-deductible donation receipts for donors
Online fundraising platform (Fundraising by Fractured Atlas)
Fiscal sponsorship dashboard (fund balance, donation history, donor contacts)
Grant application review and endorsement letters
IRS determination letter for grant applications
Nonprofit rate request letters (for discounted venues, services)
Staff support

Total Annual Cost at Various Funding Levels

|------------------|--------|------------|------------|

| $5,000 | $400 | $120 | $520 |

| $10,000 | $800 | $120 | $920 |

| $25,000 | $2,000 | $120 | $2,120 |

| $50,000 | $4,000 | $120 | $4,120 |

Sources:

---

4. STRUCTURING REQUIREMENTS

The Core Question: How Does Jason Run Both JLF and a FA-Sponsored Program?

This is common and well-established in the arts world. The structure:

JLF (S-Corp) — Jason's commercial woodworking business. Makes furniture, serves clients, generates profit. No changes needed.

Belden Woodshop Education Program (FA-Sponsored Project) — A separate, non-commercial project that provides community woodworking education. Receives grants and tax-deductible donations through FA. Jason is the project lead.

Legal Entity Options

The FA application asks for a "legal entity" that will be responsible for receiving and reporting grant funds. Options include:

Individual / sole proprietor (Jason personally)
DBA / sole proprietorship
LLC
Corporation (including S-Corp)
Informal group
Partnership

Recommended approach: Apply as Jason Lewis individually, NOT as the JLF S-Corp. This creates the clearest separation between commercial operations and the education program.

Tax Implications

All funds released from FA are considered taxable grant income
The legal entity listed on the application is responsible for IRS reporting
FA sends fund release documentation; the project/individual files taxes accordingly
Funds are released daily by electronic fund transfer to a designated bank account

What Must Stay Separate

FA funds can ONLY be used for the education program's charitable purposes
Money released for project expenses must remain under your direct control
Class fees, workshop tuition, and other earned income CANNOT flow through FA (see Section 6 below)
FA exercises oversight over expenditures to ensure IRS charitability compliance
All grant applications and solicitation materials must be reviewed and approved by FA staff

Can Jason Personally Benefit?

Yes, within limits. Project leads commonly pay themselves for time spent on the project. Jason could receive a reasonable stipend or salary from the Belden Woodshop fund for teaching and program administration. The key: compensation must be reasonable and documented, and the project's primary purpose must be public benefit, not personal income.

Sources:

---

5. WHAT FA PROVIDES

The 501(c)(3) Umbrella

This is the headline benefit. FA's Model C (Pre-Approved Grant Relationship) extends their nonprofit status to your project for specific purposes:

Tax-deductible donations — donors get receipts, FA handles IRS compliance
Grant eligibility — your project can apply for grants requiring 501(c)(3) status
Foundation fundraising — access to corporate and foundation donors

Online Fundraising Platform

"Fundraising by Fractured Atlas" — in-house crowdfunding exclusively for FA-sponsored projects:

Tax-deductible donations with automatic receipts
Funds available for release 7 days after donation
Accepts credit cards, checks, wire transfers, ACH, stock donations, and noncash donations
Video embedding (Vimeo/YouTube)
Donor contact information accessible through dashboard
Campaign types: crowdfunding, general support, recurring support

Fund Management Dashboard

Check fund balance
View donation and fund release history
Access donor contact information
Process new donations
Submit fund release requests
Submit grants for review

Grant Application Support

FA provides:

Endorsement letters certifying fiscal sponsorship
IRS determination letter confirming nonprofit status
Staff review of grant applications for compliance
Upload of required documents to grant portals
NOT: grant writing, research, or donor databases

Nonprofit Rate Letters

FA can issue letters confirming your nonprofit rate eligibility for discounted venues, services, and equipment.

What FA Does NOT Provide (Common Misconceptions)

NOT a grant (approval doesn't come with money)
NOT tax-exempt status (you still pay income tax on disbursed funds)
NOT a bank account (funds must go through FA first for tax deductibility)
NOT grant writing services (they review, they don't write)
NOT a development department (you lead your own fundraising)
NOT a donor database (you build your own donor relationships)
NOT insurance (FA ended its insurance program December 31, 2019)

Sources:

---

6. CRITICAL NUANCE: EARNED INCOME VS. CONTRIBUTED REVENUE

This is the most important structural detail for Belden Woodshop.

FA Cannot Process Earned Income

FA's fiscal sponsorship can ONLY process contributed revenue (donations, grants, sponsorships). It CANNOT process earned revenue. Earned revenue includes:

Class fees / tuition
Workshop fees
Membership dues
Ticket sales
Merchandise sales
Payment for services

This means: if Belden Woodshop charges $75/person for a beginner class, that money does NOT go through FA. Jason handles class fees directly, outside the FA relationship, as regular business income.

What DOES Go Through FA

Tax-deductible donations from individuals who want to support the education mission
Foundation grants for community education, craft preservation, workforce development
Corporate sponsorships structured as donations
Crowdfunding campaign contributions

Why This Matters for Belden Woodshop

The education program has two revenue streams that need separate treatment:

1. Earned income (class fees, workshop tuition) — managed by Jason directly, reported as business income, NOT through FA

2. Contributed income (grants, donations) — managed through FA, provides the 501(c)(3) benefits

The FA sponsorship doesn't replace the education program's commercial revenue model. It SUPPLEMENTS it by opening access to grant funding and charitable donations that would otherwise be inaccessible.

Practical example: Jason charges $75/student for a beginner class (earned income, handled directly). Meanwhile, the Belden Woodshop FA fund receives a $10,000 grant from the Chicago Community Trust to provide subsidized classes for low-income residents (contributed income, through FA). Both can exist simultaneously.

Sources:

---

7. COMPARABLE PROGRAMS AND EXAMPLES

Maker Spaces Using Fiscal Sponsorship

School Factory — Provided fiscal sponsorship to 75+ collaborative maker spaces and hands-on learning communities nationwide. Identified Social Good Fund and Inquiring Systems Inc. as additional providers for smaller groups.

Dallas Makerspace — 501(c)(3) nonprofit community workshop in Texas. 36,000 sq ft. Model for community woodworking education at scale.

Open Works (Baltimore) — Nonprofit makerspace connecting makers to manufacturing equipment, space, education, and community. Founded 2016.

Make Nashville — Nonprofit makerspace in 12,000 sq ft of workshops.

Craft Education Programs

Center for Furniture Craftsmanship (Maine) — Teaching the Teachers program awards scholarships to organizations teaching woodworking to disadvantaged communities. Nonprofit model.

Rebuilding Exchange (Chicago) — Nonprofit offering affordable woodworking classes ($50-$150). Community-focused.

Sam Beauford Woodworking Institute — Offers multiple scholarships for woodworking education.

Artists Running Both Commercial and Sponsored Work

This is extremely common. Thousands of FA-sponsored artists maintain commercial practices (selling art, taking commissions, freelancing) while simultaneously running fiscally sponsored projects. The key is clean separation: commercial income stays separate, FA funds go only to the charitable project.

Example: The Lesbian Bar Project — became FA-sponsored after receiving a corporate donation requiring tax-deductibility. The project leaders maintained their separate careers and commercial activities.

Example: Third Rail Projects — FA members since 2008, creating immersive theater. Operate commercially for ticketed events while using FA sponsorship for grant-funded community work.

Sources:

---

8. ALTERNATIVES TO FRACTURED ATLAS

New York Foundation for the Arts (NYFA)

One of the oldest and most reputable fiscal sponsors in the country
Helps artists raise and manage an average of $4 million annually
Fee structure: 8% on $0-$500K, 6% on $501K-$2M, 4% on $2M+
Better for large-scale projects; similar to FA for smaller ones
More selective than FA
URL: NYFA

Social Good Fund

6-8% fiscal sponsorship fee (sliding scale based on project size)
$29/month admin cost (refunded after raising $5,000/year)
No application fee
Broader mission than arts — environmental, social justice, education
Model A and Model C options
URL: Social Good Fund

Inquiring Systems Inc.

8% fee on first $100,000; 7% on amounts exceeding $100,000
Focused on environmental regeneration, social justice, social/economic re-envisioning
Marginal fit for craft education
URL: Inquiring Systems Inc.

Allied Media Projects (AMP)

Detroit-based, 150+ sponsored projects across the U.S.
Media and liberation focus — less aligned with craft education
URL: Allied Media Projects

Intersection for the Arts (San Francisco)

Long-standing fiscal sponsor for artists
Earned income doesn't need to flow through the sponsor
Issues 1099s for contracted artist services
URL: Intersection for the Arts

Chicago-Specific Options

Chicago Community Trust (CCT) — Not a fiscal sponsor itself, but accepts grant applications from organizations that HAVE a fiscal sponsor. Using FA as the sponsor would make Belden Woodshop eligible for CCT grants.

3Arts (Chicago) — Not a fiscal sponsor, but awards $30,000 unrestricted grants to individual Chicago artists. Nomination-based. Woodworking/craft qualifies under visual arts.

Arts Work Fund (Chicago) — Focused on capacity-building for small and mid-sized arts organizations. Requires established nonprofit status.

Recommendation

Fractured Atlas remains the best fit for Belden Woodshop because:

1. Broadest definition of art — craft education qualifies easily

2. Fastest approval — 1-2 weeks vs. months for others

3. National scope — no geographic restrictions on the project

4. Largest network — 4,000+ projects, well-known to funders

5. Reasonable fees — 8% flat, no minimums

6. Self-service dashboard — minimal administrative burden

7. No application fee

Sources:

---

9. RISKS AND LIMITATIONS

FA Can Terminate Your Sponsorship

FA can end the relationship at their discretion. While they don't publish detailed termination policies, likely causes include:

Using funds for non-charitable purposes
Failing to comply with reporting requirements
Activities that conflict with FA's 501(c)(3) status (lobbying, private benefit)
Inactivity

90-Day Fund Retrieval Window

If your sponsorship ends (voluntarily or involuntarily) while funds remain in your balance:

You have 90 days to request release of remaining funds for eligible project expenses
FA sends multiple emails during this window
After 90 days, remaining funds are permanently absorbed into FA's General Fund
This is non-negotiable — you lose the money

Fund Use Restrictions

All disbursed funds must be used for approved project-related activities only
FA exercises oversight over expenditures for IRS compliance
Lobbying is prohibited
Profit-sharing or investor arrangements require additional addendums
All grant applications must be reviewed by FA staff before submission (10 business day standard timeline)

Tax Complexity

All fund releases are taxable income to the legal entity on the application
You're responsible for tracking and reporting this income
FA issues documentation but does not handle your tax filing
If the legal entity on the application differs from the bank account receiving funds, the legal entity still bears tax responsibility

Timing Risk

Getting FA-sponsored does NOT mean immediate grant eligibility
Many grants require a track record of programming before applying
FA's grant review process adds 10 business days to any grant deadline
Planning ahead is essential — a "few days" before a deadline is not enough

Commercial Activity Creep

The biggest risk for Belden Woodshop: allowing the line between JLF's commercial operations and the education program's charitable mission to blur. If FA (or the IRS) perceives that the education program is primarily benefiting JLF's commercial business rather than serving the public, the sponsorship could be revoked.

Mitigation: Maintain clear separation. The education program has its own mission statement, its own budget, and its own public benefit rationale. Jason can teach classes and be compensated, but the program's purpose is community education, not JLF revenue generation.

Sources:

---

10. GRANT ACCESS THROUGH FA SPONSORSHIP

Grants That Become Accessible

With FA sponsorship, Belden Woodshop could apply for the following grants that currently require 501(c)(3) status:

DCASE Neighborhood Access Program (NAP) — $5,000-$50,000

Explicitly accepts individuals/collectives with a nonprofit fiscal sponsor (501(c)(3) or 501(c)(6))
Supports arts/cultural activities serving specific neighborhood residents
Logan Square qualifies geographically
Project must engage neighborhood residents as participants or audiences
This is the most immediately actionable grant with FA sponsorship

Chicago Community Trust — Variable

CCT accepts applications from agencies with a nonprofit fiscal sponsor
For-profit entities are specifically required to use a fiscal sponsor to apply
Grants support arts, education, community organizations in the Chicago region

MacArthur Foundation — Culture, Equity, and the Arts — Variable

$3.2 million awarded in 2025 to fifteen organizations
Multi-year general operating support
Smaller organizations funded through A Road Together (ART) initiative with the Field Foundation
Requires established track record

Driehaus Foundation — Arts and Culture — Variable

Funds Chicago-based arts service initiatives
Builds business acumen, management capacity, and backbone structures for the arts ecosystem
Invitation-only, but welcomes aligned inquiries
Currently not taking first-time applications until early 2026 (may now be open)

Illinois Humanities — Project Grants — $2,000-$15,000

Public humanities programming
Good fit if framed around craft heritage, traditional woodworking preservation

Grants That STILL Won't Work Through FA

NEA — Grants for Arts Projects

IMPORTANT: Fiscally sponsored organizations are NOT eligible for NEA funding
An organization or individual "may not use a fiscal sponsor/agent for the purpose of applying"
This is a direct NEA policy — FA sponsorship does NOT unlock NEA grants
This contradicts the prior grant research document's assumption. The NEA is off the table regardless of FA status.

DCASE CityArts

Requires the applicant itself to be a 501(c)(3) nonprofit
Fiscal sponsorship not accepted

Grants That Don't Need FA (Individual Artist Awards)

These remain accessible regardless of FA sponsorship:

IACA Creative Accelerator Fund — $10,000 (October 2026)
DCASE Individual Artists Program — Up to $6,000 (January 2027)
3Arts Awards — $30,000 (nomination-based)
Center for Craft Teaching Artist Cohort — $10,000 + peer cohort
IACA Creative Projects Grant — Up to $12,000

Sources:

---

11. NEA CORRECTION — IMPORTANT UPDATE

The prior grant research document (grant_research.txt) listed NEA Grants for Arts Projects as accessible through FA fiscal sponsorship. This is INCORRECT.

Per the NEA's published eligibility requirements: "Fiscally sponsored organizations and projects are not eligible for NEA funding, and an organization or individual may not use a fiscal sponsor/agent for the purpose of applying."

The NEA requires applicants to be independent 501(c)(3) organizations with at least five years of arts programming history. FA sponsorship does not satisfy this requirement.

This does not diminish the value of FA sponsorship — the Chicago-local grants (NAP, CCT, MacArthur/Field Foundation) are significant and directly accessible through FA. But the NEA should be removed from the "unlocked by FA" list.

---

12. RECOMMENDED STRATEGY

Immediate Action: Apply to Fractured Atlas (This Month)

Project name: Belden Woodshop Community Education Program (or similar)

Project description framework:

"Belden Woodshop is a community woodworking education program based in the Logan Square neighborhood of Chicago. Operating from a professional woodworking studio with 25 years of craft history, the program provides beginner and intermediate woodworking instruction, guest instructor workshops, and open shop access to community members. Our mission is to preserve and transmit traditional woodworking skills, provide hands-on creative education, and build a community of makers in an underserved neighborhood. All programming is designed for public benefit — making professional craft education accessible to people who otherwise would not have access to industrial woodworking tools, instruction, or mentorship."

Legal entity: Jason Lewis (individual) — NOT JLF the S-Corp

Budget: Start with Year 1 education program projections (~$16K) plus grant/donation targets

Public benefit framing:

Community access to professional woodworking instruction
Skill-building and workforce development
Preservation of traditional craft techniques
Accessible pricing / potential scholarship programs funded by grants
Neighborhood cultural programming in Logan Square

Short-Term: Apply for NAP (Next Cycle)

Once FA-sponsored, immediately apply for the DCASE Neighborhood Access Program:

$5,000-$50,000 grant
Fiscal sponsorship explicitly accepted
Logan Square location serves the program
Arts/cultural activities serving neighborhood residents — textbook Belden Woodshop

Medium-Term: Build Track Record for Larger Grants

Run classes for 6-12 months to establish programming history
Document participation, community impact, student outcomes
Apply to Chicago Community Trust, Field Foundation/A Road Together, Illinois Humanities
Build donor base through FA's fundraising platform

Parallel Track: Individual Artist Awards

These don't require FA and should be pursued independently:

IACA Creative Accelerator — $10,000 (October 2026)
DCASE Individual Artists Program — Up to $6,000 (January 2027)
3Arts — $30,000 (watch for next cycle)

Financial Model Impact

If Belden Woodshop secures even one $10,000 grant annually through FA sponsorship:

$10,000 grant - $800 FA fee = $9,200 net
Minus $120/year membership = $9,080 net
This nearly matches the projected Year 1 class revenue ($14,400)
Grant funding could subsidize scholarships, equipment, or instructor fees
Makes the education program financially viable faster

Long-Term Consideration: Own 501(c)(3)

If the education program grows significantly (multiple classes, significant grant revenue, open shop model), eventually incorporating Belden Woodshop as an independent 501(c)(3) nonprofit may make sense. This would:

Eliminate the 8% FA fee
Enable direct NEA applications (after 5 years of programming history)
Enable CityArts applications
Provide full organizational autonomy

But this is a 3-5 year decision. FA sponsorship is the right starting point.

---

SUMMARY OF KEY FINDINGS

| Question | Answer |

|----------|--------|

| Does Belden Woodshop qualify? | Yes — craft education with public benefit fits FA's broad criteria |

| Setup cost | $0 application + $10-20/month membership |

| Ongoing cost | 8% on donations/grants received |

| Setup time | 1-2 weeks after application |

| Can Jason run both JLF and the FA project? | Yes — thousands of artists do this; keep finances separate |

| Can class fees go through FA? | NO — earned income must be handled separately |

| Does FA unlock NEA grants? | NO — NEA explicitly excludes fiscally sponsored projects |

| Does FA unlock Chicago grants? | YES — NAP, CCT, and other local grants accept fiscal sponsorship |

| Biggest risk | Blurring the line between JLF commercial operations and the education program |

| Best alternative to FA | NYFA (similar fees, more selective) or Social Good Fund (broader mission) |

| Recommendation | Apply now; pursue individual artist grants in parallel |

---

ALL SOURCES

Application & Process:

Eligibility & Requirements:

Fee Structure:

Legal Structure & Model:

Earned vs. Contributed Revenue:

What FA Provides:

Fund Management & Closing:

Grant Access:

Alternatives:

Chicago Grant Programs:

Comparable Programs:

Claude