How do you know if an organization needs a fiscal sponsor? Are there certain requirements that an organization must meet in order to not use a fiscal sponsor?
As noted in the RFP, an eligible applicant must be either a 1) Nonprofit organization (i.e., 501c3 federally recognized or State-Incorporated), 2) Federally-recognized tribal government; or 3) Native American organizations (which includes Indian groups, cooperatives, partnerships, associations).
An ineligible organization might consider using an eligible fiscal sponsor because the ineligible organization does NOT have the required 501c(3) or state-incorporated non-profit status. The fiscal sponsor would then become the applicant, while the ineligible organization becomes a partner. See also our response to "Must Fiscal Sponsors be located in the same state as the project?"