Fiscal Agent

AAA

DEFINITION of 'Fiscal Agent'

An organization, such as a bank or trust company, that acts on behalf of another party performing various financial duties. A fiscal agent may assist in the redemption of bonds or coupons, handle tax issues, replace lost or damaged securities and perform various other finance-related tasks.

INVESTOPEDIA EXPLAINS 'Fiscal Agent'

Fiscal agents (or fiscal sponsors) are most often seen in the non-profit sector. Many non-profit organizations don't have a lot of experience managing the administrative aspects of a business, while others do not have the required 501(c)(3) status needed to legally operate one. In both cases, a fiscal agent can help by providing limited financial and legal oversight for groups and individuals. Those seeking a fiscal agent should do their homework, however, as the IRS rules governing such arrangements can be tricky.




RELATED TERMS
  1. Not For Profit

    A not for profit organization is a type of organization that ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  4. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  5. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  6. Security

    A financial instrument that represents: an ownership position ...
Related Articles
  1. How Influential Economists Changed Our ...
    Fundamental Analysis

    How Influential Economists Changed Our ...

  2. The Dark Side Of The WTO
    Economics

    The Dark Side Of The WTO

  3. Investment Misselling A Global Problem
    Personal Finance

    Investment Misselling A Global Problem

  4. Coping With Inflation Risk
    Bonds & Fixed Income

    Coping With Inflation Risk

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center