Any corporation, including nonprofit organizations, must have bylaws. A corporation’s internal operations are governed by its bylaws, which specify how decisions are made, board members are chosen, and disputes are settled. Although they are not needed by law in every state, bylaws are advised in order to give the organization structure and clarity.
Although bylaws are not expressly mandated by law in New Mexico, they are strongly advised. Although the New Mexico Nonprofit Corporation Act does not mandate that organizations adopt bylaws, it does mandate that they have a set of guidelines that direct their internal operations. The most popular method for establishing these regulations is through bylaws, which are frequently needed by banks, funders, and other businesses that deal with non-profit entities.
The bylaws of a business perform a variety of crucial duties. They determine the organization’s structure, including the size and responsibilities of the board and officials. The methods for holding meetings and making decisions, including how votes are cast and disputes are settled, are also outlined in the bylaws. The organization’s policies and procedures, such as those governing conflicts of interest and donation management, can be established in the bylaws.
Corporations may also pass resolutions to create policies or make decisions in addition to bylaws. Ordinarily, resolutions are used to make one-time decisions or modifications to current rules or practices. Bylaws and resolutions are frequently used in tandem to provide the organization more direction and structure.
You must apply for 501c3 status with the IRS if you want to launch a non-profit in New Mexico. This procedure include filing a thorough application that contains details about the objectives, management, and finances of the organization. After being granted 501c3 status, you will be qualified for tax-exempt status as well as other advantages.
Last but not least, although the University of New Mexico (UNM) is a nonprofit, it is not a 501c3 entity. Section 115 of the Internal Revenue Code exempts UNM, a state university, from paying federal income taxes. In addition to policies and procedures for handling donations and conflicts of interest, UNM has bylaws that regulate internal affairs.
In conclusion, while bylaws are not expressly required for non-profit corporations in New Mexico, they are strongly advised in order to give the organization structure and clarity. Resolutions can be used to make one-time choices or adjustments to current policies, whereas bylaws set the organization’s internal rules and processes. If you want to form a non-profit organization in New Mexico, you must apply for 501c3 registration with the IRS. If your group is connected to UNM, you should be aware of the university’s internal governance structure and non-profit status.