The Food Depot Calls for a Reform of New Mexico’s Anti-Donation Clause

HB290, the Vibrant Communities Act has been moved to Monday, February 24 at 8:30 am.
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If you can show up on Monday, February 24 either in person (Room, 305) or via Zoom that would be terrific!
~ Shel Neymark

​Food Depot

Santa Fe, NM — The Food Depot joins nonprofits across New Mexico in a call to modernize the state’s anti-donation clause. The outdated constitutional provision prevents efficient, trusted community services from directly accessing awarded state funds. The delays or legal barriers have blocked critical projects for food banks, libraries, community centers, mental health organizations, and other essential services.

To access state-awarded funding, The Food Depot, headquartered in Santa Fe, has relied on Santa Fe County to act as its fiscal agent while serving nine counties and more than 80 nonprofit partners. During the pandemic, the county administered the food bank’s American Rescue Plan Act (ARPA) funds. This created extra administrative burdens on the county and a complex web of procurement, contracts, and ownership between the food bank and the county. In 2022, awarded funds through the Governor’s Hunger Initiative were subject to the anti-donation clause. The assets obtained through this grant–a fleet of vehicles and warehouse equipment–remain the property, and uncompensated management burden, of the County.

“The Food Depot is fortunate to have a strong partner in Santa Fe County, a municipality with a clean audit”, said Jill Dixon, Executive Director of The Food Depot. “But for more rural counties, the anti-donation clause, while intended to protect taxpayer dollars, creates disparities from one community to another. Currently, the clause makes it nearly impossible to channel critical funding into rural and frontier areas that lack a municipality to take on the administrative burden.”

Nonprofit organizations in communities without a fiscal agency, and ultimately the people who rely on them, are forced to go without essential services.

In Mora County, Chicanos Por La Causa, an organization operating in 21 counties across New Mexico, has been forced to downsize a planned community outreach hub. The hub, set to provide mental health services, employment services, emergency food, and more, was supported by federal dollars and anticipated state funding. However, because Chicanos Por La Causa does not qualify for state funding without a qualified fiscal sponsor, the project is at risk. The lack of access to awarded state funds is also jeopardizing federal funding, which requires a state match.

“The clause must be modernized so not-for-profit entities that have the ability to obtain federal dollars are not at a disadvantage or placed in a situation where federal dollars are lost due to the inaccessibility of matching funds,” said Joseph Greigo, president of Chicano Por La Causa. “Not-for-profit entities in the state of New Mexico play a pivotal role in providing much needed services not covered by state agencies.”

Across the state, multiple nonprofit partners of The Food Depot have stalled or abandoned projects funded through state funds due to their inability to work directly with the state instead of through an approved municipality.

In Gallup, The Community Pantry and the City of Grants have struggled to move forward with a strategic expansion to the food bank despite securing funding having been awarded by the State of New Mexico. The management of procurement and lease agreements places an uncompensated administrative burden on the City for maintenance of additional equipment and property. Over two years later, the new location is set to open within the next few months. In the interim, critical food security services have been delayed.

“For nonprofits, the inability to operate without constraints and use funds as they were intended is essentially prohibited,” said Alice Perez, Executive Director of The Community Pantry. “Instead of allowing the awarded organization to use funds aligned with their strategic planning, the current process prioritizes the timeline and resources of the fiscal agency.”
 
The Food Depot and its partners urge lawmakers and the public to support legislative reforms that modernize the anti-donation clause and remove outdated laws and obstacles that prevent nonprofits from delivering essential services. Lawmakers are currently considering reforms. House Joint Resolution 11 proposes amending the New Mexico Constitution to repeal and replace the anti-donation clause, which will be decided by voters at the next election. House Bill 290, the Vibrant Communities Act, establishes a mechanism that maintains safeguards and transparency. These modernizations create a path forward for state funds to serve their intended purpose.

About The Food Depot
Established in 1994, The Food Depot aims to make healthy food accessible to communities across nine counties—26,000 square miles—of Northern New Mexico. A dynamic network of nonprofit partner agencies and unique hunger-relief programs provides an average of 700,000 healthy meals each month to more than 40,000 individuals. Resource navigation, wraparound services, and statewide advocacy efforts also support clients as they work toward food security. The Food Depot is proud to be a Santa Fe Chamber of Commerce Nonprofit of the Year, a Santa Fe Community Foundation Piñon Award winner, and a Charity Navigator four-star nonprofit. Learn, advocate, donate, and volunteer with The Food Depot by visiting thefooddepot.org.

To get involved, give time, give food, give funds. Visit www.rrfb.org,or follow the food bank on social media.
 
About The Food Depot
Established in 1994, The Food Depot aims to make healthy food accessible to communities across nine counties—26,000 square miles—of Northern New Mexico. A dynamic network of nonprofit partner agencies and unique hunger-relief programs provides an average of 700,000 healthy meals each month to more than 40,000 individuals. Resource navigation, wraparound services, and statewide advocacy efforts also support clients as they work toward food security. The Food Depot is proud to be a Santa Fe Chamber of Commerce Nonprofit of the Year, a Santa Fe Community Foundation Piñon Award winner, and a Charity Navigator four-star nonprofit. Learn, advocate, donate, and volunteer with The Food Depot by visiting thefooddepot.org.
 
 
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