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Fiscal Sponsorships

What is a fiscal sponsorship?

A fiscal sponsorship (operating under a fiscal sponsorship agreement) is distinguished from a non-profit partner (operating under an administrative agreement).

A fiscal sponsorship is a relationship between New Mexico Community Foundation as a charitable organization having a 501(c)(3) tax-exempt status and a project operated by a third party (an individual or a group without legal standing) which does not have the tax-exempt status needed to attract qualified charitable funding otherwise.

What a fiscal sponsorship is not. Our fiscal sponsorship program is not a source of funding. It is, instead, an arrangement whereby we provide a sort of banking, bookkeeping, financial reporting service which enables project directors to focus their efforts on the operating aspects of their projects while we do the back office work.

For this arrangement to be in compliance with the IRS tax code, the project must have as its objective a charitable purpose that is consistent with the mission of New Mexico Community Foundation as the fiscal sponsor – “to serve and invest in New Mexico’s communities and their people”.

New Mexico Community Foundation maintains custody of the project account and provides disbursement and accounting services for which it assesses a fee to the project.

The project could be short-term (as in the case of an event) or long-term (as in the case of a project having eventual autonomy as its goal). It could be operated by an individual or a group of individuals.

The following are NOT eligible for fiscal sponsorship.

  • A for-profit entity.
  • A non-profit corporation. (These organizations might be eligible for an administrative agreement as a non-profit partner.)
  • Services of an individual which are the sole expenditures of the project and which provide the basis for that individual’s livelihood.
  • A project which has as its objective the advancement of a religion or religious doctrine.
  • An entity whose purpose is to engage in electioneering and prohibited lobbying activities.

Give to a Fiscal Sponsorship Project

You can donate online to a fiscal sponsorship project of your choice.