State Matrix

UPDATES

WHAT YOU'LL LEARN

The following guidelines provide background information on the most common types of filings and the related exemptions in New Mexico.

Fundraising in this State

how to know (and what to do) if you're fundraising in this state

Under New Mexico state law, religious organizations are automatically exempt from charitable registration requirements. The state law has a broad definition of religious organization, including not only IRS Form 990 Non-Filers, such as churches, but also “organization(s) [and] group(s) organized for the purpose of divine worship or religious teaching or other specific religious activity [and] any other organization(s) that [are] formed in association with or to primarily encourage, support or promote the work, worship, fellowship or teaching of the church, organization or group.” Religious organizations seeking exemption from registration should work with an attorney to determine their eligibility.

if you're Fundraising in Multiple states, make sure you Understand the URS.

In this state, organizations which are required to register have the option of registering through the Unified Registration Statement, which is a standardized charitable registration accepted in many states.  Using the URS, rather than a state-specific registration form, has pros and cons. The URS typically must be submitted by mail. If the state has an online filing system, it may be more efficient to use that system, rather than complete and mail the URS manually. Additionally, states which requires charitable organizations to submit annual reports often use information from the state-specific initial registration to auto-populate annual reports, saving an organization time in the future.

evaluate whether you'll need a Registered agent

Note that out-of-state organizations that are not eligible for exemption from the charitable registration process must appoint an in-state registered agent as part of the charitable registration process. This can be done through a commercial service or by appointing a person or entity who is a supporter of your organization.

follow the rules about communicating with the public

This state does not require organizations to post specific language when conducting charitable solicitations.

Charitable REgistration statute

Charitable registration exemption statute

After you've registered–the Annual report requirement

Conducting Activities or Programs in this State

UNDERSTAND THE Business Registration REQUIREMENTS

Depending on the type and volume of activities an organization has in this state, the organization may also need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency. These foreign business registration requirements are separate from the charitable registration. Not every out-of-state organization needs to register. An attorney can assist the organization in determining whether its connections with this state are significant enough to trigger the foreign business registration requirement. Examples of activities which might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state.

Business registration statute

Get Acquainted with State and Local Tax Exemptions

State and local taxes

In this state, organizations which have received recognition of exempt status under IRC § 501(c)(3) are automatically exempt from state income tax. Some organizations may choose to send a copy of their IRS determination letter to the state department of revenue to indicate the organization's position that it qualifies for the exemption.

Note that if an otherwise tax-exempt organization has unrelated business taxable income (UBTI) that is subject to federal taxation, that UBTI may be subject to state income tax.[1] It is also important to consider whether applying for exemption from property tax and the state gross receipts tax would be appropriate for your organization. More information about the state gross receipts tax exemption is available in this guide to New Mexico gross receipts tax for 501(c)(3)s and in the New Mexico Code. Information about property tax exemption is available from the local county assessor’s office, such as this page from Bernalillo County. An accountant or attorney can provide specific answers about your organization’s eligibility for exemption.


[1]N.M.Stat. § 7-2A-4

Corporate Income Tax Statute

CORPORATE FRANCHISE TAX STATUTE

Sales and use tax

sales tax treatment of unrelated business income tax

state sales and use tax and required registrations

What This State Says about Nonprofits

A FINAL NOTE: OTHER HELPFUL INFORMATION

background

state nonprofit corporation law

conflict transactions

director standards of conduct

Members: Eligibility and Statutory Powers

indemnification

BEFORE YOU GO: OTHER SPECIAL REQUIREMENTS

useful links

Reviewed by

James Jay Mason

Legal disclaimer

This resource contains general educational information related to legal concepts, but this information does not constitute legal advice. Anyone seeking legal advice is strongly encouraged to consult with a licensed attorney regarding any of the matters discussed herein. Although licensed attorneys work with Napa Legal, Napa Legal is not a law firm and does not undertake legal representation on behalf of any clients. Further, no licensed attorney working with or on behalf of Napa Legal agrees to undertake legal representation on behalf of any client unless the terms of such representation are set forth in a separate, written representation agreement.