Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Duhigg
LAST UPDATED
ORIGINAL DATE 2/19/25
SHORT TITLE Professional Fundraiser Requirements
BILL
NUMBER Senate Bill 259
ANALYST Chavez
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
Fines and
Forfeitures
No fiscal
impact
Indeterminate
but minimal
gain
Indeterminate
but minimal
gain
Indeterminate
but minimal
gain
Indeterminate
but minimal
gain
Recurring
General
Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
NMAG No fiscal impact At least $131.8 At least $131.8 At least $131.8 Recurring General Fund
Courts No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
Total No fiscal impact At least $131.8 At least $131.8 At least $131.8 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to House Bill 62
Sources of Information
LFC Files
Agency Analysis Received From
Administrative Office of the Courts (AOC) New Mexico Attorney General (NMAG) State Auditor (OSA) State Ethics Commission (SEC)
SUMMARY
Synopsis of Senate Bill 259
Senate Bill 259 (SB259) makes several amendments to the Charitable Solicitations Act.
Section 1 amends section 57-22-2 NMSA 1978 by adding “third-party solicitors” to the purpose
statement of the Charitable Solicitations Act. Senate Bill 259 – Page 2
Section 2 amends Section 57-22-3 NMSA 1978 to amend the definitions of “solicit” or
“solicitation” to include donating of nonperishable goods. SB259 also defines “third-party
solicitor” as a person who contracts with a charitable organization to facilitate the sale of
nonperishable goods as a method for fundraising.
Section 3 amends Section 57-22-6.1 NMSA 1978 to add several requirements for professional
fundraisers and now third-party solicitors who are contracting to solicit money, nonperishable
goods, and other things of value for or on behalf of a charitable organization. SB259 would have
professional fundraisers and third-party solicitors pay a registration fee of $200 to the New
Mexico Attorney General (NMAG) and submit disclosures of all officers, employees, agents,
and contractors. These new requirements would have to be adhered to within five days of the
agreement. SB259 would have professional fundraisers and third-party solicitors file a surety
bond of $25 thousand with NMAG at the time of registration. Professional fundraisers and now
third-party solicitors would have to provide NMAG with a copy of any prospective contract
intended to permit a solicitation campaign or setting up means of collecting donated
nonperishable goods.
This section also would require contracts between a third-party solicitor and a charitable
organization to disclose:
- The authority and compensation of the third-party solicitor and the share of money
earned on the sale of donated nonperishable goods that does not go to the charitable
organization;
- The location of the means of collecting donated nonperishable goods for a charitable
organization and, if the means is a store, the store’s telephone number;
- The identities of all officers and agents of the third-party solicitor and of all managers
and supervisors in stores in New Mexico, by location;
- Any other information NMAG deems necessary.
Finally, section 3 would authorize NMAG to impose a $500 fine on third-party solicitors who
fail to register with NMAG. It would also have professional fundraisers and third-party solicitors
pay a $200 administrative penalty if they fail to comply with registration or reporting
requirements in addition to the late registration fee.
Section 4 amends Section 57-22-6.3 NMSA 1978 to define and prohibit misleading
representations from professional fundraisers and third-party solicitors. The section also clarifies
that professional fundraisers and third-party solicitors are prohibited from collecting
contributions in person or by courier if the solicitation and collection occur at the same time or if
they solicit a contribution through the sale of goods or items and simultaneously collect a
contribution while delivering the sold goods or items. It also would restrict professional
fundraisers and third-party solicitors from representing that a charitable organization would
receive a greater percentage of the revenue than agreed upon in a contract. It also prohibits the
entities from not disclosing the market value of the donated nonperishable goods to the charitable
organization.
Section 5 amends Section 57-22-6.4 NMSA 1978 to require professional fundraisers to maintain
a record of written commitments from recipients of donated tickets and provide those records to
NMAG upon request. This section would increase the information included in the professional
fundraiser’s accounting disclosure to a charitable organization. A professional fundraiser, who Senate Bill 259 – Page 3
conducts solicitation by phone, must have a description of the location and telephone numbers
from which the solicitation campaign would be conducted, and the audio recording of each
telephone solicitation. The fundraiser must also include the gross revenue received, an itemized
list of expenses incurred, and a sworn statement that the campaign records are true and correct.
Section 5 would require professional fundraisers to provide a detailed financial report, including
gross revenue and expenses, to the charitable organization and NMAG, 90 days after the
completion of the solicitation campaign. It requires third-party solicitors to provide charitable
organizations and NMAG with a written account of the market value of the donated goods and a
detailed financial report. This disclosure must adhere to the schedule provided in the contact
between the third-party solicitor and the charitable organization.
Section 6 creates a new section of the Charitable Solicitations Act, Section 57-22-6.5 NMSA
1978 requiring an operator of a collection receptacle to clearly post on the receptacle:
The name and contact information of the charitable organization that will receive goods
collected in the receptacle.
The name and contact information of any professional fundraiser or third-party solicitor
operating the receptacle, if applicable.
A statement that “financial arrangements” have been filed with NMAG.
Section 7 amends Section 57-22-9.1 NMSA 1978 to authorize NMAG to require a financial
audit, conducted by an independent certified public accountant, for any charitable organization,
professional fundraiser, or third-party solicitor.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
NMAG discloses is unclear whether the agency would require additional resources, including
full-time employees, to fulfill the additional database maintenance, monitoring, and compliance
obligations. Including third-party solicitors into the Charitable Solicitations Act would expand
the scope of supervision and enforcement for NMAG, possibly requiring more staff and
resources. Additional staff at NMAG would cost an additional $131.8 thousand per year for FTE,
on average. SB259 does not specifically explain what entity would pay for an independent
certified public accountant (CPA), if NMAG decides to require a financial audit. If NMAG is
required to provide CPA services, then that could also increase operating costs.
New amendments to existing laws and new hearings have the potential to increase caseloads in
the courts, thus possibly requiring additional resources to handle the increase. The expansion of
the scope of the Charitable Solicitations Act to third-party solicitors could lead to increasing
caseloads and appeals.
SIGNIFICANT ISSUES
NMAG provides the following:
The bill would require certain disclosures and prohibit certain representations from
professional fundraisers and third-party solicitors. Such requirements and prohibitions Senate Bill 259 – Page 4
could implicate the First Amendment. However, the First Amendment “accords a lesser
protection to commercial speech than to other constitutionally guaranteed expression”
Cent. Hudson Gas & Elec. Corp. v. Pub. Serv. Comm'n of New York, 447 U.S. 557, 562–
63 (1980).
The State Auditor (OSA) states:
SB259 provides that the Attorney General may contract with a CPA to audit a charitable
organization, professional fundraiser, or third-party solicitor. Currently, provisions of law
at 57- 22-6 C NMSA 1978 provide that charitable organizations with greater than $750
thousand in expenses that do not already file a Form 990, 990EZ or 990PF with the
Attorney General, must have a financial audit. However, provisions of law at 57-22-6 B 2
NMSA 1978 also allow the Attorney General to waive audit requirements if not
necessary for the protection of the public interest. It is unclear how these provisions of
law would interact. Presumably, the Attorney General would use existing statutes for
filing forms and audits supplemented with the new provision as needed in instances
where a professional fundraiser or third party solicitor is involved in the need for an audit
under this new section of law. It is assumed that the Attorney General would continue to
be able to waive audit filing, thus continuing to exercise discretion it currently has.
The Office of the State Auditor does not have oversight of audits for nongovernmental
charitable organizations. It is assumed the Attorney General would either use the OSA
approved IPA list or vet the CPA firm themselves.
ADMINISTRATIVE IMPLICATIONS
SB259 adds new oversight as well as additional tasks like receiving and maintaining the
additional reports and disclosures, which could require some additional administrative changes to
make sure everything is in compliance. The courts would have some additional administrative
implications to adhere to any new case proceedings including appeals.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
NMAG provides the following:
The bill relates to HB62, which would repeal most of Section 57-22-9.1 (i.e., Subsections
A to I). However, because HB62 does not repeal the entirety of Section 57-22-9.1—
leaving Subsection J intact—passage of the two bills would likely not create a conflict
but would require that SB 259’s added subsection be compiled as Subsection B rather
than Subsection K.
FC/hj/hg/sgs