The nonprofit partner administrative agreement is partnership between NMCF and a nonprofit partner, typically a New Mexico nonprofit corporation that may have federal 501(c)(3) charitable tax status with the Internal Revenue Service. However, having a 501(c)(3) status is not a requirement.

These agreements are not sources of funding. Rather, these partnerships are special arrangements where NMCF provides support services such as banking, bookkeeping, financial reporting, so that project directors can focus on the actual project.

Operationally, the services provided by NMCF to a nonprofit partner are similar to those of a fiscal sponsorship. However, a nonprofit partner, as a legal entity, has some authorities that a fiscal sponsorship doesn’t have, such as being able to enter into contracts, obtain business insurance, and hire employees. Typically, NMCF maintains custody of the received funding and provides disbursement and accounting services for which it assesses a fee on the project’s funding.

Like fiscal sponsorships, a nonprofit partner administrative agreement between NMCF and a nonprofit partner must comply with the IRS tax code. Each project operating under this agreement must have as its objective a charitable purpose that is consistent with NMCF’s mission “to serve and invest in New Mexico’s communities and their people.”

The following are not eligible for a nonprofit partner administrative agreement.

• A for-profit entity
• Services of an individual which are the sole expenditures of the project and which provide the basis for that individual’s livelihood
• A project that 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