In a funding context, an auspice is an organisation who manages grant funding on your behalf. For example, a small community group with limited resources may use a larger Not-for-Profit Organisation as their auspice. The larger NFP will receive and manage the grant funding, with the community group undertaking the actual project work.
Auspice arrangements are reasonably common when a funding body requires applicants to have Deductible Gift Recipient (DGR) status. A community group may be able to find a larger NGO with DGR status to auspice their application so that they can still apply for funding.
When approaching an organisation to be your auspice, it's a good idea to:
Make sure you are on the same page philosophically and ethically
Check that you are both aiming for the same goals
Have a good working relationship before applying for funding.
For more tips on structuring your grants and improving your grant applications, take a look at our Grant Resources.