Bookkeeping a nightmare for Grants MainStreet

By Helen Davis
Cibola County Bureau

GRANTS — The Grants MainStreet Project is more than just the annual Fire and Ice Rally. The organization is part of a national movement to revitalize neglected downtown areas and bring fresh commerce and public space to older towns.

The project is sanctioned by the National Historic Trust’s Main Street program and one of many members of the New Mexico Main Street program, who gives guidance to local groups. It does not provide funding.

The Grants MainStreet Project suffered problems with organization in the past, being put on probation two years ago by the New Mexico Economic Development Department, who covers Main Street groups. Grants City Councilor Fred Rodarte said the organization lost city support for eight months around the same time.
In late 2006 the organization pulled itself back together and got off probation.

How is the Grants MainStreet Project doing now and how is it put together?

A local Main Street organization does not have to be a nonprofit corporation. National and state Main Street agencies leave structure and business responsibility up to the local groups, but hold them responsible for adherence to the Main Street principles and approach to revitalization.

The Grants MainStreet Project is registered as a 501 3(c) public charity and a New Mexico corporation. The corporation has bylaws, members, a board of directors and officers, and is subject to New Mexico Public

Regulation Commission rules and filings.
The PRC requires that nonprofit groups maintain bylaws on site and to supply them to any member of the public who asks for them.

It also says that nonprofits must keep records, including minutes of all meetings of the general membership, the board of directors and committees; financial dealings; and a list of members and their names and addresses. Any member can ask to see the records anytime at the business’ main address.

The PRC requires a yearly report including the names of all the business’ directors, among other things. If the nonprofit does not comply, it loses its good standing and can lose its status as a New Mexico nonprofit.

MainStreet is also subject to Internal Revenue Service rules, such as filing a yearly statement of income, contributions and so forth and making those records available to the public upon request. IRS fines covering annual filings can go as high as $10,000.

Straying too far from its bylaws can leave a nonprofit open to a lawsuit from members or to the IRS canceling its status for gross mismanagement.

In addition to complying with state and federal regulations, Grants MainStreet Project must comply with guidelines set by the trust and New Mexico Main Street.

In a story published March 21, New Mexico Attorney General Office’s Registrar of Charities, Christine Turner, said MainStreet has been delinquent in filing the IRS Form 990 or 990-EZ (Schedule A) since Dec. 31, 2005. The form lists salaries for employees and costs paid private contractors, donations, membership fees, other income and activities, among other things.

Turner said the fine for not filing is $100 per year per form. She added that there is some room to work with corporations that cooperate.

At the time, Donald Jaramillo, co-president of MainStreet, said he was unaware filings were delinquent because it was someone else’s assigned duty.

“We are working together to get the records up to date,” Jaramillo said.