Grants guide: understanding auspicing

Auspicing is when an eligible organisation applies for and manages a grant on behalf of another group or individual.

Published 13 August 2026

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This page explains how auspicing works, when you might need it and what both parties are responsible for.

If you’re an individual or unincorporated community group with a project idea but no Australian Business Number (ABN), auspicing can provide a pathway to apply. The right auspice can also provide access to experience, support and networks that may strengthen your project and build your capacity as a practitioner.

Auspicing allows individuals and unincorporated community groups to access some City of Sydney grant programs through a partnership with an eligible organisation.

What auspicing means

Auspicing is when an eligible incorporated organisation (the auspice) receives, administers and manages a grant on your behalf because you’re not able to apply directly.

For example, if you have a project idea but don’t have your own ABN and aren’t eligible to receive funding, an auspice organisation can apply for and receive the funds on your behalf.

The auspice provides financial accountability and may charge a fee between 5% and 10% of the project budget. They can also provide public liability insurance suitable for the project.

When you need an auspice

If you’re an individual without an ABN, you must be auspiced to apply for:

Aboriginal and Torres Strait Islander collaboration fund
social and community grants – social and community projects category
social and community grants – small-scale food support category
creative grants – creative projects category
creative grants – artists support category.

If you are an unincorporated community group, you must be auspiced by an eligible not-for-profit organisation to apply for:

quick response grants
Aboriginal and Torres Strait Islander collaboration fund
social and community grants – social and community projects category
social and community grants – small-scale food support category
creative grants – creative projects category
short-term empty properties grants
street banner support.

If you’re applying for the Aboriginal and Torres Strait Islander collaboration fund, your auspicing organisation doesn’t need to be Aboriginal or Torres Strait Islander-led or owned. It’s still important to choose an organisation that understands your community and can support your proposal.

Choose a suitable auspice

A suitable auspicing organisation:

has the knowledge, structure and availability to support you in completing your project
understands grant processes
has experience managing and supporting similar projects
agrees upfront –preferably in writing – how you will work together including key milestones, roles and responsibilities and payment timeframes.

Roles and responsibilities

The auspicing organisation is required to:
- enter into the funding agreement with the City of Sydney
- receive grant funds and pay the grant applicant
- manage funds throughout the project
- manage any value-in-kind support approved, including making bookings and entering into related agreements
- meet all obligations in the funding agreement, including arranging appropriate insurances on your behalf.
The auspice should also have the capability to support you throughout the project, while recognising that project decisions remain with you as the applicant.
As the applicant, you’re responsible for:
- completing the project
- completing all forms in our grant management system (SmartyGrants), including the application and final report (acquittal)
- providing a letter from the auspice confirming they agree to auspice the project (to be uploaded with your application).
The auspice may support you with reporting requirements, including the acquittal, where needed.

Your relationship with your auspice

To protect your interests, we recommend you have a separate written agreement with your auspice. This agreement sits alongside the funding agreement with the City of Sydney.

Your auspice agreement should cover:

when and how you will be paid
how the auspice will support you
where funds will be held, for example if you want them held in trust
any fee the auspice will charge.

If there is a service fee, you can negotiate this amount and include it in the agreement. The fee is usually paid once the project is complete and the auspice has met its obligations.

Important: GST registration

Your auspice must have the same GST status as you. If you’re registered for GST, your auspice must also be registered. Otherwise, you may lose 10% of your grant funding.

Letter of support from your auspice

You must upload a letter from your auspicing organisation with your SmartyGrants application. This letter confirms the organisation agrees to auspice your project. The letter must be on the organisation’s official letterhead.

What the letter must include

Organisation details: the full legal name of the auspicing organisation and their ABN
Project confirmation: a clear statement that the organisation agrees to auspice the specific project
Responsibilities: confirmation that the organisation understands and accepts the responsibilities of the auspice role, including receiving and managing funds and holding appropriate insurance
Authorised signatory: the letter must be signed by an authorised representative of the auspicing organisation (not the applicant)
Contact details: a name, position, email address, and phone number for the auspice contact

Sample letters

You can share this sample letter with your auspicing organisation as a guide.

[Auspice organisation letterhead]

[Date]

Grants team
City of Sydney

Re: Agreement to auspice – [project name]

I am writing on behalf of [auspice organisation name] (ABN: XX XXX XXX XXX) to confirm that we agree to act as the auspicing organisation for [applicant name] in their application to the City of Sydney [grant program, category name].

We understand that as the auspice, we are responsible for:
- entering into the grant agreement with the City of Sydney
- receiving, managing, and disbursing grant funds on behalf of the applicant
- maintaining appropriate insurance, including public liability insurance, for the duration of the project
- meeting all obligations under the funding agreement.
We have the skills and experience to support this project and will work with the applicant to ensure it is completed as proposed.

If you have any questions, please contact:

[Name], [Position]
[Auspice organisation name]
[Email] | [Phone]

Yours sincerely,

[Signature]
[Full name]
[Position]
[Auspice organisation name]
If you are applying as an unincorporated community group, use this version.

[Auspice organisation letterhead]

[Date]

Grants team
City of Sydney

Re: Agreement to auspice – [project name]

I am writing on behalf of [auspice organisation name] (ABN: XX XXX XXX XXX) to confirm that we agree to act as the auspicing organisation for [community group name], an unincorporated community group, in their application to the City of Sydney [grant program name].

We understand that as the auspice, we are responsible for:
- entering into the grant agreement with the City of Sydney
- receiving, managing, and disbursing grant funds on behalf of the community group
- maintaining appropriate insurance, including public liability insurance, for the duration of the project
- meeting all obligations under the funding agreement.
We have worked with the group to understand their project and are satisfied we have the capacity to support its completion.

If you have any questions, please contact:

[Name], [Position]
[Auspice organisation name]
[Email] | [Phone]

Yours sincerely,

[Signature]
[Full name]
[Position]
[Auspice organisation name]

Need help?

If you’re not sure whether you need an auspice, or you have questions about finding one, contact the grants team

: 02 9265 9333
: [email protected]

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Grants guide: understanding auspicing

What auspicing means

When you need an auspice

Choose a suitable auspice

Roles and responsibilities

Role of the auspice

Role of the applicant

Your relationship with your auspice

Important: GST registration

Letter of support from your auspice

What the letter must include

Sample letters

Individual applicant

Unincorporated community group

Need help?