Texas has no general charity registration or audit requirement, but franchise and sales tax exemptions, Form 990 and funder requirements still apply. Here's what your organization needs.
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Texas does not require nonprofits to file audited or reviewed financial statements with the state.
Texas state agency contracts, foundations and lenders often require an audit. State grants may also trigger the Texas Grant Management Standards single audit.
File the full Form 990 with the schedules that apply (public support, compensation, related organizations). Details →
If you have $1,000 or more of gross income from a trade or business that isn't substantially related to your mission (such as advertising, certain rentals or retail), file Form 990-T and pay tax on the net income. Details →
Texas nonprofit corporations file a periodic report with the Secretary of State only when the SOS requests it (no more than once every four years). Details →
Organizations exempt under 501(c)(3), (4), (8), (10) or (19) apply to the Comptroller on Form AP-204 with their IRS determination letter. Details →
Nonprofit employers withhold state income tax where the state has one and file quarterly wage reports. Details →
Texas does not require general charitable solicitation registration.
Most charities don't register to solicit in Texas. Exceptions include certain veterans organizations and organizations soliciting for law enforcement or public safety, which have their own registration rules.
Texas nonprofit corporations file a periodic report with the Secretary of State only when the SOS requests it (no more than once every four years). Respond within 30 days, or the corporation can be forfeited. Keep your registered agent and address current.
What Texas requires is often less than what your funders, lenders or federal awards require. Check all three.
Organizations with significant Texas state awards may need a state single audit under the Texas Grant Management Standards (TxGMS), separate from the federal requirement. The threshold and scope are set in TxGMS and your contract, so check with the awarding agency.
Organizations that spend $1,000,000 or more in federal awards in a fiscal year (for fiscal years beginning on or after October 1, 2024) need a Single Audit under the Uniform Guidance. It is due to the Federal Audit Clearinghouse within 30 days of the auditor's report or 9 months after year-end, whichever is earlier. Federal funds passed through a state or county agency count.
Foundation grants, government contracts, bank loans and United Way-type funders often require audited or reviewed statements regardless of state law. Read each agreement and plan the engagement level to the strictest one.
Every document your auditor will ask for, plus Texas's registration and threshold rules, on two printable pages.
Every tax-exempt organization files an annual federal information return, and the form depends on your size.
File the full Form 990 with the schedules that apply (public support, compensation, related organizations). It is due the 15th day of the 5th month after year-end, with an automatic 6-month extension on Form 8868 (not available for the 990-N). Three years of missed filings revoke exemption automatically.
If you have $1,000 or more of gross income from a trade or business that isn't substantially related to your mission (such as advertising, certain rentals or retail), file Form 990-T and pay tax on the net income. States generally tax it too.
Federal 501(c)(3) status does not automatically exempt you from Texas franchise or sales tax.
Organizations exempt under 501(c)(3), (4), (8), (10) or (19) apply to the Comptroller on Form AP-204 with their IRS determination letter. Without it, a nonprofit corporation is a taxable entity for franchise tax and pays sales tax on purchases.
Charitable organizations that own property apply separately to the county appraisal district for property tax exemption.
Tax-exempt status doesn't exempt you from payroll taxes.
Nonprofit employers withhold state income tax where the state has one and file quarterly wage reports. 501(c)(3) organizations can usually choose between paying state unemployment tax and reimbursing the state for actual claims, which can save money for stable workforces. 501(c)(3)s are exempt from federal unemployment tax (FUTA).
These are the items auditors and reviewers ask for first. Having them ready shortens fieldwork and lowers the fee.
Board and committee minutes for the year, current bylaws, conflict of interest policy with signed annual disclosures, and whistleblower and document retention policies (both are asked about on Form 990).
Donor records reconciled to the general ledger, pledges receivable schedule, grant agreements with conditions and restrictions identified, and in-kind contribution support.
A roll-forward of restricted gifts showing what was received, released and remaining, by purpose and time restriction.
A documented method for allocating salaries and shared costs between program, management and general, and fundraising, consistent with your Form 990 Part IX.
Bank and investment reconciliations, fixed asset additions and depreciation, accrued payroll and vacation, deferred revenue, and loan statements at year-end.
Most don't. Only certain categories, such as some veterans and public safety organizations, have registration requirements.
No. You must apply to the Comptroller (Form AP-204 for most 501(c) organizations).
Not by state law. Audits come from federal awards, Texas state grants, funders and lenders.
Download the Nonprofit Audit Readiness Checklist (PDF).
Greywood CPA audits and reviews nonprofits with fixed, transparent pricing and senior-level attention on every engagement.
See our Texas servicesThis guide is general information as of October 2026 and is not legal or tax advice. Thresholds and filing rules change. Your funders, lenders and governing documents may require more than state law. Confirm your obligations with a CPA or attorney.