New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 239 - DEDUCTION - GROSS RECEIPTS TAX - FUNDRAISING
Section 3.2.239.11 - PERIOD FOR FUNDRAISING EVENT LIMITED

Universal Citation: 3 NM Admin Code 3.2.239.11

Current through Register Vol. 35, No. 18, September 24, 2024

A. A fundraising event must be of limited duration. A recurring, regularly scheduled activity, or any portion of a regularly scheduled activity, is not a fundraising event and the receipts are not deductible under Section 7-9-85 NMSA 1978. A fundraising event must have a specific commencement date and a specific ending date. The period of time between the commencement and ending dates may not exceed ten (10) consecutive calendar days except:

(1) fundraising events conducted in association with and coterminous with the annual state fair may be conducted for the period in which the state fair is held;

(2) planning, contracting, advertising and other organizational or administrative activities may take place at any time before the specific commencement date;

(3) ticket sales to a fundraising event may precede the specific commencement date by up to sixty (60) days before the specific commencement date but the department, upon written application from the organization showing good cause, may permit a longer period; and

(4) final accounting and similar administrative tasks may be conducted after the specific ending date.

B. Example 1: The local garden club, exempt from federal income tax under Section 501(c)(5) of the Internal Revenue Code, raises money for the club's selected charity by selling flower bulbs donated by club members on two consecutive weekends in the spring. Because two consecutive Saturday/Sunday periods fall within ten consecutive calendar days, the bulb sale is a single fundraising event and the receipts may be deducted under Section 7-9-85 NMSA 1978.

C. Example 2: The local post of a national veteran's organization, exempt from Federal income taxation under Section 501(c)(19) of the Internal Revenue Code, raises money for the post's exempt activities by selling pies at the local county fair. The fair runs for two weeks, beginning on a Wednesday. The local post, however, sells pies only from the first Friday through the second Sunday during the fair. Because this period does not exceed ten consecutive calendar days, the pie sale is a single fundraising event and the receipts may be deducted under Section 7-9-85 NMSA 1978.

D. Example 3: A local social welfare organization, exempt from federal income tax under Section 501(c)(4) of the Internal Revenue Code, conducts a car wash on donated property every Saturday, weather permitting, as a way to raise funds for the organization's exempt activities. Because the car wash is a regularly scheduled, recurring event, it is not a fundraising event and the receipts from the car wash may not be deducted under Section 7-9-85 NMSA 1978.

E. If the fundraising event involves the solicitation of orders for the subsequent delivery of tangible personal property or the subsequent performance of personal services, the period of time in which orders are solicited will be considered the fundraising event. Delivery of the ordered tangible personal property or performance of the ordered personal service may occur after the specific ending date of the fundraising event.

F. Example 4: The local chapter of a national sorority, exempt from federal income tax under Section 501(c)(7) of the Internal Revenue Code, sells calendars and appointment books to raise money to benefit a selected charity. Members of the sorority solicit orders for the calendars and appointment books during October, so the items can be delivered in time for use as holiday gifts. If the order solicitation period in October is limited to no more than ten consecutive calendar days, the activity is a single fundraising event and the receipts may be deducted under Section 7-9-85 NMSA 1978 even though the calendars and appointment books will not be delivered until December.

Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.