How to become an SGO in New Mexico

1.Be a 501(c)(3) public charity

The IRS has to recognize you as a 501(c)(3), and you can't be a private foundation. New Mexico hasn't said whether it takes nonprofits whose Form 1023 is still pending. If it does, it has to take every pending applicant that asks. Under Treasury's temporary regulations, a state can list a nonprofit whose Form 1023 is still pending only if the exemption, once granted, takes effect by January 1 of the list year. For 2027, that means the nonprofit has to be incorporated by December 31, 2026. (An exemption reaches back to the date you incorporated if you file Form 1023 within 27 months.)

2.Register in New Mexico

Treasury's rules count you as "located in" New Mexico if you're authorized to do business there and follow its charity laws. You don't need an office or staff there. If you're incorporated in another state, you register with the New Mexico Secretary of State ($25) and for charitable solicitation with the New Mexico Department of Justice (no fee). You'll also need a registered agent with a New Mexico address.

3.Open a separate bank account for New Mexico

Gifts for the credit go into an account that holds nothing else. If you're on more than one state's list, you keep one account per state and donors pick the state.

4.Put the §25F rules in your bylaws and policies

A new nonprofit has no track record, so the state reads its documents, and a promise to "follow the law" isn't enough. They have to require each rule: at least 90% of your income goes to scholarships, scholarships go to at least 10 students who aren't all at the same school, you verify household income, past recipients come first and then their siblings, no donor can earmark a gift for a particular student, and no scholarships go to insiders.

5.Register in the IRS SGO portal when it opens

Treasury asks every SGO to register in the IRS portal, ideally before a state lists it. The portal gives you the donor-number format your receipts use. It hasn't opened yet.

6.Apply when New Mexico opens its application

No application yet. Gov. Lujan Grisham announced on November 4, 2026 that New Mexico will participate, and her office said the New Mexico Public Education Department will set up a process for certifying SGOs in the coming weeks; organizations can apply once the department releases its certification guidelines. The governor's office says the state will certify every SGO that meets the criteria, as the law requires. In the meantime, get the two things that make an organization "located in" New Mexico under the federal rules: authorization to do business in the state (a certificate of authority from the Secretary of State if you're incorporated elsewhere) and registration with the New Mexico Department of Justice's charities unit. The state still has to file its advance election by January 1, 2027, and its SGO list is due at the IRS by February 15, 2027.

7.After you're listed

Send each donor a written acknowledgment by January 31 and report the gifts to the IRS by February 28. Under Treasury's proposed regulations, which you can rely on for 2027, you also file a yearly certification and report (with a copy to every state that lists you), get a yearly audit, and spend at least 90% of each year's income on scholarships by the end of the next year.