N.M. Code R. § 3.2.20.23 – Grants - Donations

A. The proceeds of any agency, institution, instrumentality or political subdivision of the state of New Mexico from grants from other governmental entities (federal, state or local) or grants, donations or bequests from private persons are not receipts from a taxable activity and are not governmental gross receipts.
B. Example: The Hospital Auxiliary holds a bake sale, the proceeds of which are donated to County X's hospital. The hospital's receipts are from donations and are not governmental gross receipts.
C. The proceeds from any raffle, lottery or similar game are receipts from a game of chance and are not governmental gross receipts. Such receipts will be treated as donations for the purposes of Section 7-9-3.2 NMSA 1978. In the event that tangible personal property (such as an automobile or camera) is offered as a prize by the raffle, lottery or other game, the tangible personal property will be deemed to be donated to the winner.
[6/28/91, 10/2/92, 11/15/96; 3.2.20.23 NMAC - Rn, 3 NMAC 2.100.23 & A, 4/30/01]