# New Mexico Booster Club Filing Requirements

> New Mexico booster club rules: $25 incorporation, $10 annual report, gross receipts NTTCs, the school-support charity exemption, and a two-year raffle rule.

- URL: https://boosterclub.org/states/new-mexico/
- Section: States
- Updated: 2026-10-08

Three New Mexico rules surprise booster clubs. Its gross receipts tax exempts purchases only with a certificate given to each vendor. A nonprofit supporting a single public school district may fall under NMSA 6-5A-1, which exempts it from charity registration but ties it to the district by written agreement. And no organization may hold a raffle until it has existed in New Mexico for two continuous years.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State, Business Services | Articles of Incorporation (Nonprofit) | $25 | once |
| Annual report | Secretary of State | Nonprofit annual report | $10 | first within 30 days, then yearly |
| State income/franchise tax exemption | Taxation and Revenue Department (TRD) | None (CIT-1 only for unrelated income) | $0 | automatic |
| Gross receipts tax exemption on purchases | TRD | Type 9 NTTC, after ACD-31015 registration | $0 | per vendor |
| Gross receipts tax on fundraiser sales | TRD | None if exempt under 7-9-29 | $0 | n/a |
| Charitable solicitation registration | NM Department of Justice (Attorney General) | Registry filing and annual report | Confirm with agency | annual, unless exempt |
| Raffle permit/registration | Gaming Control Board | License, unless exempt (four raffles a year or fewer) | Confirm with agency | per license |

## Forming a Nonprofit Corporation in New Mexico

A booster club incorporates under the Nonprofit Corporation Act (NMSA 53-8) by filing Articles of Incorporation online with the Secretary of State's Business Services Division. The fee is $25 (NMSA 53-8-85). The articles name a New Mexico registered agent and need IRS-required purpose and dissolution language for 501(c)(3) status (federal tax exemption for charitable and educational organizations). See [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/).

The first annual report is due within 30 days after incorporation. After that, the $10 report is due by the 15th day of the 5th month after the club's taxable year ends (NMSA 53-8-83): May 15 for a calendar year, November 15 for a June 30 fiscal year. That matches the federal Form 990-N deadline, so the treasurer can file both the same week.

## State Tax Exemption

Federal 501(c)(3) status carries over automatically for New Mexico corporate income and franchise tax. A 501(c)(3) files Form CIT-1 only when it has unrelated business income.

## Sales Tax

New Mexico's gross receipts tax (GRT) is imposed on the seller, who passes it along in the price. TRD publications FYI-103 and QG-004 set these rules for a 501(c)(3):

**Purchases.** Only purchases of tangible personal property for exempt functions escape passed-on GRT, and only when the club gives the vendor a Type 9 Nontaxable Transaction Certificate (NTTC). To issue NTTCs, the club registers with TRD on Form ACD-31015, attaching its IRS determination letter. Services, rentals, hotel rooms, and banquet halls remain taxable.

**Sales.** Under NMSA 7-9-29, a 501(c)(3)'s receipts are exempt from GRT except receipts from an unrelated trade or business as defined federally. Volunteer-run fundraisers are generally not an unrelated business (see [Unrelated Business Income Tax](https://boosterclub.org/taxes/ubit/)), so most booster fundraiser receipts are exempt. Raffle receipts fall under a separate tax instead of GRT.

## Charitable Solicitation Registration

The Charitable Solicitations Act (NMSA 57-22) requires charities operating or soliciting in New Mexico to register with the Attorney General's office (now the New Mexico Department of Justice) and file an annual report within six months after the fiscal year ends. A Form 990 or 990-EZ filer submits a copy; a 990-N filer submits an alternate report under oath. Total expenses over $750,000 require an audit by an independent certified public accountant (CPA). The statute sets a $100 late fee and has no small-organization dollar exemption.

NMSA 57-22-4(B), however, exempts from registration and reporting "educational institutions and organizations defined in Section 6-5A-1." That section covers a 501(c) organization whose principal purpose is supporting a single "agency," which expressly includes a public school district. A booster club supporting one district's program appears to fit, and takes on these duties:

1. Before the district accepts the club's funds or property, the two sign a written agreement covering purpose, financial reporting, and district review of the bylaws.
2. A club with $750,000 or less in annual expenditures files a balance sheet statement with the district.
3. A club above $750,000 is audited annually under governmental auditing standards.

A club unsure whether it qualifies should confirm with the Department of Justice before relying on the exemption.

## Raffles and Gaming

Raffles are legal for qualified organizations under the Bingo and Raffle Act (NMSA 60-2F), administered by the Gaming Control Board. A "qualified organization" is a bona fide charitable or educational nonprofit that **has existed in New Mexico continuously for two years** before conducting a raffle or applying for a license. A new booster club cannot hold a raffle until its second anniversary; the board has warned that unqualified raffles carry misdemeanor penalties.

Key rules:

- **Exempt raffles.** A qualified organization holding no more than one raffle (or bingo occasion) in any three consecutive calendar months, and no more than four in a calendar year, is exempt from the Act's licensing (NMSA 60-2F-26).
- **Licensed raffles.** More frequent raffles require a Gaming Control Board license, with fingerprinting. Confirm current fee with the agency.
- **Large prizes.** A raffle with an individual prize over $75,000 requires ten days' prior notice to the board and a report of winners afterward.
- **Raffle tax.** Licensed games pay a bingo and raffle tax of one-half percent of gross receipts, filed quarterly with TRD (Form RPD-41345).

The Act does not address online ticket sales directly; confirm with the Gaming Control Board before selling online.

## Annual Compliance Calendar for New Mexico

| Filing | Due date | Agency |
|---|---|---|
| First annual report | Within 30 days after incorporation | Secretary of State |
| Annual report ($10) | 15th day of 5th month after year end: May 15 (calendar year), November 15 (June 30 year) | Secretary of State |
| Form 990-N (federal) | Same rule: May 15 or November 15 | IRS |
| Charity annual report (if not exempt) | Six months after year end: June 30 or December 31 | NM Department of Justice |
| Balance sheet statement (6-5A-1 clubs) | Per the written agreement | School district |
| Bingo and raffle tax (licensed games) | Quarterly: April 25, July 25, October 25, January 25 | TRD |

## Common Mistakes in New Mexico

- **Raffling in year one.** A club that has not existed in New Mexico for two years is not a qualified organization, even for an exempt raffle.
- **Holding a fifth raffle.** The four-per-year exemption is lost on the fifth, and the club needs a license.
- **Skipping the first annual report.** It is due within 30 days of incorporation.
- **Ignoring the district agreement.** A club relying on the 6-5A-1 exemption needs the written agreement before the district accepts its gifts.

## Checklist

### Forming

- [ ] File Articles of Incorporation with the Secretary of State ($25), with IRS purpose and dissolution language
- [ ] File the first annual report (within 30 days after incorporation)
- [ ] Obtain an EIN (Employer Identification Number) and apply for federal 501(c)(3) status
- [ ] Register with TRD on Form ACD-31015 and obtain Type 9 NTTCs
- [ ] Decide with the district whether the club is a 6-5A-1 organization; sign the written agreement or register with the Department of Justice
- [ ] Calendar the club's two-year anniversary before planning any raffle

### Every Year

- [ ] File the $10 annual report and Form 990-N (by the 15th day of the 5th month after year end)
- [ ] File the charity annual report if registered (within six months after year end)
- [ ] Give the district its balance sheet statement if the club relies on 6-5A-1 (treasurer)
- [ ] Count raffles held in the calendar year before scheduling another
- [ ] File quarterly bingo and raffle tax returns if the club holds licensed games

## Related Pages

- [Filing Requirements by State](https://boosterclub.org/states/) compare other states
- [State Taxes for Booster Clubs](https://boosterclub.org/taxes/state-taxes/) how states treat 501(c)(3) income
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) purchases and fundraiser sales
- [Working With the School and District](https://boosterclub.org/governance/working-with-the-school/) agreements and boundaries
- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) state-by-state summary

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*This page is general information for volunteer-run booster clubs. It is not legal,
tax, or accounting advice, and BoosterClub.org is not a law firm, accounting firm, or
government agency. Rules change and vary by state and district. Confirm current
requirements with the IRS, the relevant state agency, the school district, and a
qualified professional before acting. If a fact on this page is out of date, we want
to know.*

## Sources

1. New Mexico Secretary of State: https://www.sos.nm.gov/business-services/statutes-governing-business-in-nm/
2. New Mexico Taxation and Revenue Department: https://www.tax.newmexico.gov/businesses/information-for-non-profits/
3. New Mexico Taxation and Revenue Department: https://realfile.tax.newmexico.gov/FYI-103.pdf
4. New Mexico Taxation and Revenue Department: https://realfile.tax.newmexico.gov/qg-004.pdf
5. New Mexico Gaming Control Board: https://www.gcb.nm.gov/wp-content/uploads/2021/02/Letter__Prohibited_Raffles_5_06_20.pdf
6. New Mexico Gaming Control Board: https://www.gcb.nm.gov/licensure-information-and-guides/
7. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard