New Mexico ranks #14 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations. New Mexico has several laws that facilitate the contributions of faith-based nonprofits, including an automatic exemption from state corporate income tax for religious organizations that have 501(c)(3) status and a broad and automatic exemption from charitable solicitation registration for religious organizations. New Mexico, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment and a lack of protection for religious exercise during a state of emergency.
The New Mexico Constitution follows in lockstep with the federal constitution’s protections, meeting but not exceeding the required minimum protections of the First Amendment (as currently interpreted by the US Supreme Court).
New Mexico has enacted a RFRA that protects the religious free exercise of all individuals and entities by requiring government burdens on religious exercise to satisfy strict scrutiny. Since the RFRA is a statute rather than a state constitutional provision, New Mexico does not receive the highest score for this factor.
New Mexico’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide only narrow accommodations or exemptions.
New Mexico’s nondiscrimination laws related to employment provide strong accommodations or exemptions to generally protect the autonomy of most religious organizations.
The New Mexico Constitution contains a Blaine Amendment that could prevent the participation of faith-based schools in generally available public benefit programs on the same terms as similarly situated secular schools. This is not as broad as a general Blaine Amendment, which prohibits all aid to faith-based institutions, but is still detrimental to the work of faith-based institutions. Current U.S. Supreme Court precedent has rendered this language ineffective in many cases, but it could become effective in the future if Court precedent changes.
New Mexico nonprofit corporation law does not have any law deferring to religious beliefs and structures in governance matters and does not have any special provisions specific to the internal governance or operations of religious organizations.
New Mexico law permits a director, in the fulfillment of the director’s fiduciary duties, to rely on the opinion of individuals who can reasonably be assumed to have expertise on a certain matter but does not expressly allow a director to rely on guidance from religious figures within his or her faith tradition.
As a condition of maintaining authorization to fundraise in the state, New Mexico generally requires the submission of reviewed or audited financials for organizations with total expenses of $750,000 or more.
New Mexico imposes a sales and use tax (in New Mexico this is called a gross receipts and compensating tax) on religious organizations’ sales but generally provides a broad and comprehensive, entity-based tax exemption for 501(c)(3) religious organizations’ sales upon application.
New Mexico imposes a sales and use tax (in New Mexico this is called a gross receipts and compensating tax) on religious organizations’ purchases but generally provides a broad and comprehensive, entity-based tax exemption for 501(c)(3) religious organizations’ purchases upon application.
New Mexico imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
