Charities Frequently Asked Questions
The Charities unit has prepared the following answers to frequently asked questions
to assist organizations with the registration and reporting requirements pursuant
to the Charitable Solicitations Act,
NMSA 1978 §57-22-1 et seq and its regulations.
1. Who is required to register with the New Mexico Attorney General’s
Office?
2. When must an organization register and file its annual financial reports?
3. How do I register and file reports with the Attorney General’s
Office?
4. I do not have the capability to file electronically. May I still
file by mail?
5. What documents are required to register with the Attorney General and
what is required for an annual financial report?
6. What documents do I need to file for my organization?
7. How can I check the status of my organization's registration?
8. I tried to find information about a charitable organization by using
the Charities E-Search but I couldn't find any. What does this mean? What should
I do next?
9. How do I know if I qualify as a professional fundraiser or professional
fundraising counsel?
1. Who is required to register with the New Mexico Attorney
General's Charity Unit?
Charitable organizations that exist, operate or solicit contributions in New Mexico
are required to register and file annual
reports with the Attorney General unless
otherwise exempt pursuant to the Charitable Solicitations Act.
Exemptions under the Act include religious organizations, educational institutions
and their auxiliary groups. The Act defines a "religious organization"
as "a church, organization or group organized for the purpose of divine worship
or religious teaching or other specific religious activity or any other organization
that is formed in association with or to primarily encourage, support or promote
the work, worship, fellowship or teaching of the church, organization or group."
Educational institutions and their auxiliary groups are exempt from the registration
and annual reporting requirements. The Act defines an "educational institution"
as "an entity organized and operated primarily as a school, college or other
instructional institution with a defined curriculum, student body and faculty, conducting
classes on a regular basis." The Act further defines an "auxiliary entity"
to include "parent-teacher organizations, booster and support clubs that support,
encourage or promote a school, college or other instructional institution and its
defined curriculum, student body, faculty, facilities or activities."
Charitable organizations are organizations recognized under section 501(c)3 of the
Internal Revenue Code and/or groups that hold themselves out to the public as operating
for a "charitable purpose." For purposes of registration and annual reporting,
only organizations, not otherwise exempt, that are recognized under section 501(c)3
of the Internal Revenue Code, organizations which hold themselves out as having
a charitable purpose and organizations soliciting funds for police, firefighters
and other public protection purposes must register with the Attorney General and
file annual reports. top
2. When must an organization register and file its annual reports?
Organizations must register with the Attorney
General before soliciting funds in
New Mexico. Organizations that exist and operate in New Mexico must also register
within thirty days of filing their IRS Form 1023 or IRS Form 1024 Application for
Exempt Status.
Annual reports are required to be filed with the Attorney General's Charities unit
within six months following the close of an organization's fiscal year. Requests
for extensions of time to file required documents will be granted for good cause
shown. Filing a request for extension (IRS Form 8868) with the Internal Revenue
Service is considered "good cause."
The maximum time allowed under an extension to file is 11 months and 15 days after
the close of an organization's fiscal year. Requests for extension must be filed
within six months following the close of an organization's fiscal year. A copy of
the IRS Form 8868 may be uploaded electronically on the Attorney General’s
electronic registration system or if exempted from electronic filing, filed by facsimile
at 505-222-9006.
Organizations are subject to a $100 penalty for failure to register and/or failure
to file annual reports on time, and/or failure to make a timely request for an extension
of time to file annual reports. top
3. How do I register and file reports with the Attorney General’s
Office?
Organizations are now required to register and file reports electronically using
NM-COROS at https://secure.nmag.gov/coros/. The
electronic filing system allows you to fulfill all registration and filing requirements
including filling out the electronic registration form, uploading documents, filing
annual reports and getting immediate confirmation of receipt. top
4. I do not have the capability to file electronically.
May I still file by mail?
In order to file with hard copies by mail rather than electronically you must send
a letter requesting exemption from electronic filing along with an affidavit affirming
under oath that you are unable to file electronically and a brief description of
the reason you are unable to do so. The Charities unit staff will review the
request and upon good cause shown, grant exemption from electronic filing and mail
the required forms in hard copy. top
5. What documents are organizations required to submit to the
Attorney General in order to meet registration requirements and what is required
for an annual financial report?
Registration with the Attorney General's Charity Unit requires
electronic submission,
unless granted an exemption from electronic filing (See Q. 4 above), of the following
documents:
-
A completed electronic registration form.
-
A complete electronic copy of IRS Form 1023 or IRS Form 1024 Application for Exempt
Status (as applicable under the Internal Revenue Code).
-
An electronic copy of the organization's articles of incorporation and by-laws.
-
A complete and accurate electronic copy of the organization's IRS Form 990, Schedule
A and all attachments (if applicable), or a complete and accurate electronic copy
of the organization's IRS Form 990-PF (if applicable) or a complete and accurate
copy of the Attorney General's electronic annual report form (if applicable). Copies
of the schedule of contributors attached to IRS Form 990 or IRS Form 990-EZ are
not required to be filed.
-
Organizations registering before completing their first year of operation are not
required to file IRS Form 990, IRS Form 990-PF or the Attorney General's annual
report form.
-
Organizations that file IRS Form 990 and have more than $500,000 in "total
revenue" are required to also file an electronic copy of the organization's
audit performed by an independent certified public accountant. (Consult the regulations
for more details). top
6. What documents do I need to file for my organizations annual
report?
The annual financial reporting requires that financial information is updated for
the tax year at issue on the electronic registration
system. Including the submission
of the following documents:
-
A complete and accurate electronic copy of the organization's IRS Form 990, Schedule
A and all attachments (if applicable), or a complete and accurate electronic copy
of the organization's IRS Form 990-PF (if applicable) or a complete and accurate
electronic copy of the. Copies of the schedule of contributors attached to the IRS
Form 990 or IRS Form 990-EZ are not required to be filed.
-
Organizations that file IRS Form 990 and have more than $500,000 in "total
revenue" are required to also file an electronic copy of the organization’s
audit performed by an independent certified public accountant.
-
Organizations that have less that $25,000 in “total revenue” are not
required to submit an IRS Form 990, If an organization has total revenue less that
$25,000, but has contracted with a professional solicitor, the organization must
upload an electronic copy of the complete IRS 990. top
7. How can I check the status of my organization's registration?
The Charitable Solicitations Act states that registration and annual reports become
effective ten days after being submitted to the Attorney General's office.
Ten days after completing electronic registration, unless otherwise notified, your
registration becomes effective. A printout of your confirmation page provided
at the end of electronic registration
or reporting will show your submission date
from which the ten days are to be counted.
Organizations may upload documents to the electronic registration system or may
be granted exemption from electronic registration upon request and showing of inability
to electronically register and may then file documents with the Attorney General
by registered mail. However, the Attorney General does not accept registered mail
as proof that required filings have been made.
In order to obtain verification that required documents have been filed, a printout
confirmation is available at the end of the electronic registration process.
The Attorney General reserves the right to reject filings when they are incomplete,
falsified or not made in compliance with applicable instructions.
Organizations can access their electronic account to check status, or if exempted
from filing electronically can call 505-222-9046 to check the organization's status. top
8. I tried to find information on a nonprofit by using the charity
search but I couldn't find any information. What does this mean? What should I do
next?
In the future, the Attorney General’s Office will be able to provide instant
electronic viewing of documents which become public record upon registration or
annual reporting. In the meantime, the user may conduct searches from the
entire GuideStar database of over 850,000 organizations. This allows the user to
check IRS Form 990 information as well as other organizational information. This
does not identify whether the charity is registered in good standing in New Mexico.
GuideStar provides search tips to assist the user. Review the search tips and try
again.
Still unsuccessful? Here are some common reasons your search may be unsuccessful
are:
- The organization's legal name is different from the one used in the solicitation.
- By law, the organization is not required to register with the Attorney General and,
therefore, it is not found in the database.
- The database is still being adapted to reflect the new electronic registration system.
- The organization is non-compliant in their filing requirements
- The organization is a scam.
Be aware that there can be very different reasons for an unsuccessful search. Don’t
jump to any conclusions if you are unable to find the information you are looking
for. However, we want to help. If you are unsuccessful in completing your
search, please send an email describing the information you are trying to find to
Char...(click to show)...@nmag.gov and let
us know about your difficulties. We will do our best to help locate more information
on the organization in question.
If you need to know if a charity is in good standing with the Attorney General’s
office, please either email Char...(click to show)...@nmag.gov or call
us at 505-222-9046. top
9. How do I know if I qualify as a professional fundraiser or
professional fundraising counsel?
Professional fundraisers include any person that solicits or employs or directs
other to solicit contributions from the public on behalf of a charitable organization
in exchange for compensation and has custody or control of the contributions; provided
that this person is not a director, officer, bona fide employee or salaried officer,
volunteer, attorney, accountant or investment counselor of a charitable organization.
*NOTE* The statutory definition of the term ‘contributions’ is very
important in determining professional fundraiser vs. professional fundraising counsel
status. Contribution does not only refer to money in this case. It means
also “ the promise, grant or pledge of any money, credit or property of any
kind…in response to a solicitation” So, even if your organization
makes the call and takes the pledge, but the actual money is sent to another operation,
you are still considered a professional fundraiser under New Mexico Statute and
required to register and report as such.
The New Mexico Attorney General’s Office is unable to accept electronic registration
and reporting from professional fundraisers at this time. You must file via
hard copy until the electronic registration system allows electronic registration
and reporting.
Professional Fundraiser Registration
- Registration Form
- A Surety Bond
- Certified Contract --Intended written contract(s) between the professional fundraiser
and the charitable organization on whose behalf the professional fundraiser intends
to conduct a solicitation campaign, including all copies of solicitation materials.
This contract must be certified by the charity. Any additional contracts or changes
in contracts must be submitted at least 15 days prior to soliciting in New Mexico.
A professional fundraiser who fails to register with the Attorney General may be
assessed a late registration fee of five hundred dollars ($500.00).
Annual Reporting
An annual report to the Attorney General's Office is not separately required.
However, professional fundraisers are required to account in writing at least every
six months to the charitable organization in accordance with NMSA 1978 § 57-22-6.4
Professional Fundraising Counsel
Professional fundraising counsel means a person that provides services or employs
or directs others to provide services for compensation to a charitable organization
on the solicitation of contributions, including management of preparing materials
to be used in conjunction with any solicitation; provided that person does not 1)
directly solicit contributions; or 2) receive, have access to or control any contribution
received in response to the solicitation provided that this person is not a director,
officer, bona fide employee or salaried officer, volunteer, attorney, accountant
or investment counselor of a charitable organization. *NOTE* Again, the statutory
definition of the term ‘contributions’ is very important in determining
professional fundraiser vs. professional fundraising counsel status. Contribution
does not only refer to money in this case. It means also “ the promise,
grant or pledge of any money, credit or property of any kind…in response
to a solicitation” So, even if your organization makes the call and
takes the pledge, but the actual money is sent to another operation, you are still
considered a professional fundraiser under New Mexico Statute and required to register
and report as such.
Professional fundraising counsel does not have to register separately in New Mexico,
but must be listed on the charities annual financial report. top