Illinois Prairie Community Foundation provides fiscal sponsorship for a number of organizations and projects. In some cases, the organizations are new nonprofits that have not yet received a 501(c)3 designation. Shorter term charitable projects may choose to hold their funds at the Community Foundation rather than establish themselves as a separate charitable organization. By virtue of being a component fund in the Community Foundation, the organization and project funds are eligible to receive tax-deductible donations.

An organization or project must meet requirements to become a component fund of the Community Foundation. The Community Foundation manages the gifts made to the fund, writes thank you letters to donors, provides regular fund reports to the organization or project group and provides information about the organization or project on its website. In addition, the Community Foundation manages the expenses from the funds, assuring donors that all gifts are being properly used for charitable purposes.