City Council candidate for District 6, Nichole Rogers, failed to file the required legal documents for her charitable nonprofit and has not disclosed a full accounting of funds raised, including how donations were spent, according to IRS documents from August of 2022 and New Mexico government department documents from this year.
Rogers started the Welstand Foundation in 2019 “to enhance all aspects of well-being for under-served and under-represented youth in New Mexico,” according to the New Mexico Secretary of State website.
The candidate, who said her occupation is "business consultant and financial adviser" to the Albuquerque Journal, has not publicly discussed the status of her foundation and attempts made to keep it in good standing with the New Mexico Attorney General and Secretary of State. Rogers also failed to file mandatory documents with the Internal Revenue Service, a delinquency first noted by the agency in May of 2022.
The IRS revoked the Welstand Foundation’s status on May 15, 2022. According to the IRS website, tax-exempt organizations that do not file 990-series returns for three consecutive years face this consequence.
A search of the Welstand Foundation on the IRS website reveals that the foundation had its tax-exempt status revoked. Visit https://apps.irs.gov/app/eos/details/ and click under the "search by field." Scroll down to "organization name" and then type in "Welstand" in the search box.
On Oct. 20, 2023, the New Mexico Secretary of State listed Welstand Foundation as "active" but "not in good standing." However, as of Nov. 1, it's now in good standing, according to the SoS website.
Blogger Pete Dinelli reports that at least one media inquiry was made with Rogers regarding the foundation's status and that she possibly took action to meet the IRS and SoS requirements as a result.
According to the New Mexico Attorney General’s charity search website, Welstand has been delinquent on its registration status since 2019.
“There are strict requirements set up by the IRS and the state of NM to maintain nontaxable, charitable status,” said Larry Sonntag of the New Mexico Business Coalition. ”Following these requirements is one way to safeguard donors' money. Unfortunately, some people solicit money under the guise of a charitable cause when they are not a legit charity or foundation and they use the money for their benefit.”
“The loss of charitable status is, or should be a huge red flag to donors. Likewise, it is unscrupulous at least and a violation of codes/laws at worst if an organization continues to solicit 'charitable' donations when their status has been revoked.”
While the state requires nonprofits to file their IRS forms and asks for additional donor information, neither the state nor the IRS requires exact details on how donation money is used. However, the reports on Weslstand have line items for some details like income and expenses, including executive director and officer compensation, Sonntag said.
“So by not filing reports, who knows how much Nicole may have been paid/benefits, etc. from Welstand.”
Dinelli also reported on a Nextdoor.com post by Rogers in mid-October, in which the candidate said that Welstand was no more as of 2020. In a most recent post on Nextdoor.com, Rogers said she shut down the nonprofit in 2021; however, the foundation's Facebook page shows that donations were still accepted in 2022.
According to the foundation’s Facebook page and City Council records, Welstand received and solicited donations while not in compliance with the state and IRS.
On Nov. 1, the foundation’s website and Facebook page were removed.
Marble Brewery, Nexus Brewery, and Hollow Spirits Distillery partnered with the foundation in February 2021 to create a special beer with 25% of the proceeds to Welstand. Rogers accepted the donation the following month, totaling $2,726.75.
According to the foundation's Instagram, Albuquerque City Council allocated $15,000 to Welstand on May 18, 2020, through the city's Coronavirus Community Support and Recovery Funds.
Rogers said the donation would help fund Welstand Village, the foundation's first group home for children of color slated to open in the summer of 2021. The group home was never built.
The foundation again partnered with Marble Brewery on March 31, 2022 and announced that its Red Beers & Rice Lager raised $3,864.
Rogers, who is also the black community and business liaison to Mayor Time Keller, will face off against District 6 candidates in the Nov. 7 election.
“Unless she can prove that all the public records on Welstand Foundation are wrong,” Sonntag said. “Nicole Rogers wanting to be elected to a position that has oversight of billions in tax dollars should also be a red flag for voters.”
