May 10, 2016
Charitable organizations existing, operating, or soliciting in the state, except for churches and schools, have to register with the New Mexico Attorney General via its online registration system at COROS. If your organization has already completed its registration, congratulations! However, registration is only the first step. Going forward, non-financial information must be updated regularly, financial information must be reported annually, and extension requests must be made using COROS.
Federal 990 Extension Not Accepted by New Mexico Attorney General
(1) The federal extension request your organization files with the IRS for its annual report (Form 990-N, 990-EZ, 990, or 990-PF) is not a substitute for the NM A/G extension. An extension can only be requested via COROS.
(2) This is NOT something your accountant will do for you, unless they are your representative on COROS. Your accountant can still request a federal extension from the IRS on your behalf, but you are responsible for obtaining the A/G extension.
(3) The extension request should be made before the filing deadline to allow time to resolve any problems.
In the past, the A/G was insufficiently staffed to enforce the requirement that an extension be requested. Since the introduction of the electronic registration system, each organization is required to request an extension electronically; the system monitors the deadlines. Although an IRS extension is considered good cause for the A/G to approve an extension of your deadline to report under the Charitable Solicitations Act, you still have to ask. The A/G very rarely turns down a request for extension when made before the due date. The deadline is under a separate statute and an entirely separate branch of government and the A/G's office has no way of knowing that you need an extension if you do not ask it for one.
Financial Information Must be Reported Annually
(1) The organization must report its financial information within six months of its fiscal year end (for example, a December 31, 2010 year-end report is due June 30, 2011). A $100 late fee will be assessed if the report is late and no A/G extension was obtained.
(2) The copy of the federal return that is provided to the A/G must contain either the signed and dated signature page or the signed and dated e-file signature authorization form. They must be the signatures made at the time the documents were originally filed.
(3) An organization with total revenue exceeding $500,000 (defined as gross, not adjusted or net) must provide a copy of its independent auditor's report. The A/G may waive the audit requirement for good cause, but the waiver must be requested well in advance of the due date. It is highly unlikely that a waiver request will be granted if it is made too close to the filing deadline, because that shows a lack of foresight and planning on the part of the organization.
Database Must be Updated Regularly
(1) You must update the information in your account when anything substantial changes. This includes updating your board member listing and duties, bank information, and accountant information. All of these requirements have been in the Charitable Solicitations Act since 1993. There are no new requirements, they are simply
being enforced now. While you will not be penalized for incomplete reporting in prior years, you will be held to the full reporting requirements beginning February 2010. The A/G is being generous with extensions, have waived late fees for good cause, and granted an amnesty from late fees for a full year (from February 2010 to February 2011).
Contact your accountant or the New Mexico Charitable Organizations Registrar for additional information.
A special thank you goes to Elizabeth Korsmo, Assistant Attorney General, Esq., BA, JD, Director, Charities Unit, Civil Division, for her contributions to this article. Special thanks to Rhonda Williams, CPA, who is a treasured resource to New Mexico Nonprofits. You can reach Rhonda at Barraclough & Associates. PO Box 1847. Santa Fe 87504. 505.983.3387. And special thanks to Jean Block with Jean Block Consuting Inc & Social Enterprises Ventures LLC.