FISCAL SPONSORSHIP RESOURCES
• Information to Prospective NMDC Fiscal Agents
Very important: By becoming a fiscal agent, your activities are treated by the IRS and others as NMDC activities. That means that NMDC is financially and legally (as in liability) responsible for you.
• NMDC Fiscal Agent Annual Reporting Instructions
One of your responsibilities as a Fiscal Agent of NMDC is to provide annual reporting on your project. Submit this this form and attachments by the date due, after the year of your sponsored project. Why? NMDC includes your project in its IRS 990 Forms, because the IRS treats your project as an NMDC project.
• NMDC Fiscal Agent Guidelines from the IRS
In Revenue Ruling 68-489, 1969-2 C.B. 210, the IRS held that a 501(c)(3) organization can
distribute funds to organizations that have not, themselves, received IRS recognition of 501(c)(3)
status if certain steps are taken to insure that the funds are used only for charitable, educational
or other 501(c)(3) purposes.
• NMDC FISCAL SPONSORSHIP AGREEMENT
NMDC, for its sponsorship, will charge an administrative fee of 5% of the total amount received from
grants and/or donations. Funds should be made payable to the New Mexico Dance Coalition. Other NMDC services (i.e., audience liability insurance) are NOT included in this agreement.