Sep 22, 2020
The Center for Nonprofit Excellence, United Way of Central New Mexico, Santa Fe Community Foundation, Albuquerque Community Foundation and New Mexico Association of Grantmakers share in the concern and confusion our local, New Mexico nonprofit sector has about potential consequences of HB 412. Together, we collectively fund and support nonprofit organizations around the state. As 501c3 organizations ourselves, we are intimately acquainted with the challenges facing our sector.
Our nonprofit sector employs approximately 8% of New Mexico’s workforce, provides vital health and human services that improve the lives of individuals and families, and important programming that strengthens communities around the state. We are concerned that HB 412 has the potential to impede the delivery of services that vulnerable members of our communities desperately need.
While we understand the need for increased state revenue, the New Mexico nonprofit sector is the wrong place to get it. Nonprofits are simply unable to bear an increased tax burden as every dollar syphoned from nonprofit service delivery creates challenges unique to our sector.
Nonprofit organizations are held to a higher standard of accountability than other sectors. We are charged with raising funds for programming and administrative costs while working tirelessly to deliver quality services, measure and report outcomes and maintain donor trust. If fewer dollars are available for services, there is a natural negative impact on donor and public perception of our sector.
New Mexico nonprofits are uniquely positioned to fill gaps that the most disenfranchised populations around the state fall into. At a time when New Mexico community needs are high and funding sources are scarce, nonprofits around the state are dependent on tax-exemption and our communities are dependent on the services we provide.
If you share in our concern, please contact your Senator. It has already passed the House.
UPDATE - 3/17 9:00pm: Parts of HB 412 were put into SB 191 and it is confirmed that nonprofits, schools, and healthcare are still exempt from taxes. We will continue to monitor and assess impact of such a bill should it find its way to a special session.
UPDATE - 3/17 1:30pm: HB 412 has been picked apart and pieces without nonprofit implications have moved to a different bill which has been approved in both chambers and is headed to the Governor. The measures for gaining additional revenue for the state in the bill will come from "eliminating exemptions for commercial trucks, online sales and certain hospitals".