Legal Definitions - fiscal agent

Definition: A fiscal agent is a bank or financial institution that collects and disburses money on behalf of another entity. They act as a depository of private and public funds and provide services to manage those funds.

Example: A non-profit organization may hire a fiscal agent to manage their donations and expenses. The fiscal agent would collect donations on behalf of the non-profit, manage their bank accounts, and disburse funds for expenses such as rent and salaries.

Explanation: The example illustrates how a fiscal agent acts as a third-party intermediary to manage funds on behalf of another entity. The non-profit organization entrusts their funds to the fiscal agent, who then manages those funds according to the non-profit's instructions. This arrangement allows the non-profit to focus on their mission while the fiscal agent handles the financial management.