Charities
Under the New Mexico Charitable Solicitations Act, NMSA 1978 § 57-22, charitable organizations existing, operating, or soliciting in the state must register with the New Mexico Department of Justice and file annual reports with our office. In addition, professional fundraisers working on behalf of a charitable organization must register with the NMDOJ.
Please review our FAQs below to determine whether charity registration is appropriate in your organization and how to register in full compliance with the Act.
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.
If you need any information you cannot find here, please contact us.
Auditor and Auditor’s Report Requirements - Effective January 1, 2024
During the New Mexico 2023 Legislative Session, SB240 (Tax Exempt Organization Tax Audits) made changes to Chapter 57 – Trade Practices and Regulations, ARTICLE 22 – Charitable Solicitations, effective 1/1/2024.
SB240 amends the Charitable Solicitations Act (CSA) by changing the threshold from $500,000 in total revenue to $750,000 in total expenses for organizations that currently are required to provide an annual audit. Please refer to the Charitable Organization Auditor and Auditor’s Report Requirements Guide.
Which organizations are required to register with the NMDOJ?
Charitable organizations that exist, operate or solicit contributions in New Mexico are required to register and file annual reports with the New Mexico Department of Justice unless otherwise exempt pursuant to the Charitable Solicitations Act.
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. “Charitable purpose” means a benevolent, social welfare, scientific, educational, environmental, philanthropic, humane, patriotic, public health, civic or other eleemosynary objective, or an activity conducted in support of or in the name of law enforcement officers, firefighters or other persons who protect public safety.
For the purposes of registration and annual reporting, only charitable organizations which are not otherwise exempt under the Act are required to register and report to the New Mexico Department of Justice.
Exemptions under the Act include religious organizations, educational institutions and their auxiliary groups.
Religious organization is defined 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 institution is defined 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.”
When must an organization register and file its annual reports?
Organizations must register with the New Mexico Department of Justice before soliciting funds in New Mexico. Organizations that exist and operate in New Mexico must also register within thirty days of the organization’s creation even if they do not begin soliciting.
Annual reports are due to be filed with the New Mexico Department of Justice Charities Unit within six months following the close of an organization’s fiscal year. The due date is calculated for each charity on the registration home page.
How does an organization register?
Organizations register using the New Mexico Charitable Organization Registration Online System (NM-COROS).
Full registration on NM-COROS includes:
- Answering all questions, entering all information, uploading all required documents and finally submitting and certifying the registration or report through formal agreement to the statement on the “Submit Registration” page.
- A complete electronic copy of the lawfully submitted 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 lawfully enacted articles of incorporation and by-laws.
- A complete and accurate electronic copy of the organization’s lawfully submitted IRS Form 990 (any version including the e-postcard), Schedule A and all attachments (if applicable), or a complete and accurate electronic copy of the organization’s IRS Form 990-PF and attachments (if applicable), or a complete and accurate copy of the NMDOJ’s electronic annual report form (it is rare that an organization will file this report in lieu of a tax form).
- Copies of the schedule of contributors attached to IRS Form 990 or IRS Form 990-EZ are not required. Organizations registering before completing their first year of operation are not required to file IRS Form 990, IRS Form 990-PF on the NMDOJ’s annual report form.
- Organizations that file IRS Form 990 and have more than $500,000 in total revenue (defined as gross revenue prior to any deductions or losses), or more than $750,000 in total expenses effective Jan 1, 2024, are required to perform an independent audit and file an electronic copy with the NMDOJ.
Registration with the New Mexico Department of Justice Charity Unit requires electronic submission of copies of the original, legally enacted (signed, certified, notarized etc.) documents. Tax forms which were e-filed with the IRS must be accompanied by a copy of the signed e-file signature page. Unsigned documents or documents signed after the fact rather than upon original enactment will be rejected.
How does an organization complete the annual filing?
The annual financial report is also completed using NM-COROS. Annual filings require certified submission of financial information for the relevant tax year and complete and accurate electronic copies of the organization’s tax form for that year, and audit if applicable.
- Organizations which have less than $50,000 in total revenue (defined as gross revenue prior to any deductions or losses) are required to submit a copy of the IRS 990 electronic postcard.
- Organizations that file IRS Form 990 and have more than $500,000 in total revenue, or more than $750,000 in total expenses effective Jan 1, 2024, are required to perform and independent audit and file an electronic copy with the NMDOJ.
Can the time to file an annual report by extened?
Extensions of time to file the annual report with the NMDOJ must be requested through the electronic registration system and must be done before the due date. On the registration home page for each organization immediately under the due date there is a link entitled “request or view extensions,” which will navigate to the extension request function.
Filing for an extension with the Internal Revenue Service is a separate matter and does not fulfill the requirement for an organization to request an extension of the due date to file its annual reports with the NMDOJ. However, an extension which has been granted by the IRS may be cited as the reason for the request on NM-COROS, and should include the specific dates of the IRS extension.
May a charity still file its registration or documents by mail?
Generally, no. However, those charities that are unable to file all or part of their registration/report electronically for reasons such as a disability or lack of electronic resources in their locality may request an exception. To request an exception, send a letter to our mailing address describing the basis for the request along with an affidavit affirming under oath that the charity is unable to file its registration or report electronically. We will review the request and upon good cause shown, grant exception from all or part of the electronic registration/reporting functions.
Organizations without in-house electronic resources should use services and facilities in their areas including public libraries or businesses that provide copy, fax, and other services for a fee.
How does a charity check the status of its registration?
The status of the registration can be checked within NM-COROS.
The status area at the bottom of the registration home page will show a complete history of due dates, extensions, delinquencies and submittals for the organization’s registration. Once an organization has submitted a registration, an entry of “registration submitted” will appear next to the relevant tax year with an underlined registration number. This link generates a printable registration confirmation page.
Full compliance consists of the organization’s timely submittal of the registration and/or annual report and document approval. The organization may refer to the required documents page and determine the approval/rejection status of each document at any time. Additionally, an e-mail is automatically sent to the charity’s agent when the Charities Unit approves or rejects any document. If the document still shows as “uploaded” it has not yet been reviewed.
The NMDOJ Charities Unit reserves the right to reject filings when they are incomplete, falsified or not made in compliance with applicable instructions regardless of when the deficiency is discovered.
