We would like the endowment to be funded with $60 million dollars. This would provide each of more than 60 community and pueblo libraries with about $45,000 per year at 5% earnings for the fund. It would make grant funds available for the establishment and support of new libraries in small communities that don't already have one. It will also fund specialized services to rural libraries though the New Mexico State Library.
The Anti-donation Clause of the New Mexico Constitution
Anti-Donation Clause: Article 9, Section 14 of the New Mexico Constitution, is an impediment to many 501 (c)(3) public libraries in New Mexico and other non profit agencies that serve the needs of New Mexicans. A bill will be presented in the 2025 legislature for voters to amend the constitution and allow non-profit libraries to receive capital funding from the state. Please support it.
Anti-Donation Clause Implications for Non-Profits including Public Libraries
The anti-donation clause was written into the constitution to safeguard taxpayers against their resources being diverted to wealthy corporations and individuals for personal gain. Originally, it served an important function. It was not intended to block funding for some rural public libraries, but unfortunately that is the result.
Non-profit public libraries, as well as other non-profits who provide food, housing, youth education and other services, serve the public interest. Most libraries are operated by municipalities. Organizing as a 501(c)(3) is the only choice for establishing libraries in unincorporated areas, but the anti-donation clause is an impediment. The New Mexico Rural Library Initiative believes that it is appropriate to exempt non-profits who provide crucial services, especially for people most in need.
Libraries History of Anti-Donation Clause
The anti-donation clause was included in the constitution at statehood to prevent abuses like those that happened in the 19th century when government bonds were given to railroads. Many didn't produce the value the railroads promised, leaving states and municipalities in debt and enriching the railroad “robber barons.” The clause mentions an exemption for the aid of the “sick and indigent.” This exemption has been interpreted to allow state money to fund construction of privately owned clinics and hospitals.
A 1970's amendment allows the state to fund scholarships for veterans and medical students. Later decisions allow the state to repay college debt for doctors who work in under-served areas of the state. The groundwater protection act of 1992 allows state money to reimburse private expenditures legally required to clean up leaking storage tanks.
The Local Economic Development Act (LEDA ) constitutional amendment of 1994 allows an exemption for certain economic development activities of municipalities and counties. This permits state land, buildings and infrastructure to be given to private entities if they will help create new job opportunities. LEDA has allowed state funding for private enterprises.
In 2006 an exemption was created in which private entities can be given government assets for public or affordable housing. The LEDA act allows the state to give tens of millions for capital expenses to wealthy corporations (Netflix, for example, received $17 million in FY 2021 alone) while not allowing funding for tiny libraries in villages like Capitan, Villanueva and Vallecitos to do much needed repairs to their buildings. This must change.
©2025 New Mexico Rural Library Initiative
