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Between the organizer and the sanctioning body, who does what?

The division of labor varies a little bit from event to event. But as an overview, here is what a setup with NASA Rally Sport might look like. Keep in mind that this is a gross simplification: the list of items a rally needs to do can be hundreds of items long, and the list for a sanctioning body is around fifty items per rally, in addition to the long term infrastructure development that never stops.

Task Event Organizer Sanctioning Body
Find and choose roads Y
Get official road permits/contracts Y
Recruit Volunteers Y
Create supp regs and road book Y
Provides stage notes Y
Get facilities for tech, registration, awards Y
Receives payment for entering the rally Y
Sells spectating tickets, t shirts Y
Write and manage the rules Y
Provide scoring equipment Y
Software for scoring, registration, volunteers Y
Handle licenses/memberships Y
Promote the series (flags, banners, videos) Y
Promote the event locallyY
Provide trophies Y Y
Provides insurance Y