State of the Nonprofit Regulatory Environment in TEXAS

1 Bifurcation of charitable regulatory body

Bifurcated Regulatory Structure

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

TX Code § 303.052

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Only orgs that solicit on behalf of law enforcement, public safety or veterans orgs must register: V.T.C.A., Bus. & C. § 303.052 (requires registration of law enforcement-related orgs with attorney general); V.T.C.A., Occupations Code § 1803.053 (requires registration of public safety orgs with Secretary of State); V.T.C.A., Occupations Code § 1804.053 (requires registration of veteran’s orgs with Secretary of State).

TX Code § 1803.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

TX Code § 1804.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

Registration Office

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

BIFURCD-REGIOF-NS

REGULATORY BODY: Not Specific

NOTES: Texas Attorney General’s Office https://www.texasattorneygeneral.gov/cpd/charities-nonprofits-registration-filings

2 Notice, Filing or Review of Transactions

Sale of Assets

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-ASSETS-AG

REGULATORY BODY: Attorney General

NOTES: No

REPORTS-ASSETS-OT

REGULATORY BODY: Other

NOTES: No

Mergers

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-MERGER-AG

REGULATORY BODY: Attorney General

NOTES: No

TX Code § 10.007

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: Certain mergers: must file with Sec. of State, V.T.C.A., Business Organizations Code § 10.007

Certificate of Amendments

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-AMMEND-AG

REGULATORY BODY: Attorney General

NOTES: NO

TX Code § 3.056

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: Sec. of State, V.T.C.A., Business Organizations Code § 3.056

Does the state require annual financial reporting by charitable organizations in addition to filing a copy of the 990 with the regulator (if filing 990 is required)?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

TX Code § 1804.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Veterans orgs must submit an additional report: Tex. Occ. Code § 1804.053; Public safety orgs must specify additional information regarding past and projected future solicitation: Tex. Occ. Code § 1803.053; Law enforcement orgs need only file 990 or financial statement, Tex. Bus. & Com. Code § 303.052

TX Code § 1803.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

TX Code § 303.052

REGULATORY BODY: Not Specific

STATUTE TEXT:

3 Notice or Action for Dissolutions

Voluntary Dissolutions

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

DISSOLV-VOLUNT-AG

REGULATORY BODY: Attorney General

NOTES: No

TX Code § 11.105

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: V.T.C.A., Business Organizations Code § 11.105

Judicial Dissolutions

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

TX Code § 11.303

REGULATORY BODY: Attorney General

STATUTE TEXT:

NOTES: V.T.C.A., Business Organizations Code § 11.303

TX Code § 11.302

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: V.T.C.A., Business Organizations Code § 11.302

Administrative Dissolutions

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

DISSOLV-ADMINI-AG

REGULATORY BODY: Attorney General

NOTES: No

TX Code § 11.251

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: V.T.C.A., Business Organizations Code § 11.251

4 Notice, Oversight or Filing of Hospital Conversions

Has Statute

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-STATUT-NS

REGULATORY BODY: Not Specific

NOTES: No

Requires Notice or Oversight

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-OVERSI-AG

REGULATORY BODY: Attorney General

HOSPCON-OVERSI-OT

REGULATORY BODY: Other

Requires Filing

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-FILING-OT

REGULATORY BODY: Other

5 Audits

Requires Audit

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

AUDITFI-AUDITS-NS

REGULATORY BODY: Not Specific

NOTES: No

Audit Threshold

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

AUDITFI-THRESH-NS

REGULATORY BODY: Not Specific

6 Registration Law

Registration Law

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

TX Code § 303.052

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: *BUT: V.T.C.A., Bus. & C. § 303.052 (requires registration of law enforcement-related orgs with attorney general); V.T.C.A., Occupations Code § 1803.053 (requires registration of public safety orgs with Secretary of State); V.T.C.A., Occupations Code § 1804.053 (requires registration of veteran’s orgs with Secretary of State).

TX Code § 1803.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

TX Code § 1804.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

7 Exemptions from Registering for Specific Organization Types

Religious Organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-RELIGI-NS

REGULATORY BODY: Not Specific

Small organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-SMALLO-NS

REGULATORY BODY: Not Specific

Educational Institutions

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-EDUCAT-NS

REGULATORY BODY: Not Specific

Governmental Organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-GOVMNT-NS

REGULATORY BODY: Not Specific

Hospitals

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-HOSPIT-NS

REGULATORY BODY: Not Specific

Veterans organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-VETERA-NS

REGULATORY BODY: Not Specific

NOTES: Veterans orgs are one of the few that are required to register in Texas: V.T.C.A., Occupations Code 1804.053

Foundations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDYES-NS

REGULATORY BODY: Not Specific

Foundations that don’t solicit contributions

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDNOS-NS

REGULATORY BODY: Not Specific

Charitable Trusts

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-CTRUST-NS

REGULATORY BODY: Not Specific

Parent-Teacher Organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-PTOEDU-NS

REGULATORY BODY: Not Specific

Reports to congress

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-CONGRE-NS

REGULATORY BODY: Not Specific

Non-soliciting

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-NONSOL-NS

REGULATORY BODY: Not Specific

Fraternal/ Membership

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-MEMFRA-NS

REGULATORY BODY: Not Specific

Political Orgs

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-POLITI-NS

REGULATORY BODY: Not Specific

Other

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-OTHTYP-NS

REGULATORY BODY: Not Specific

8 Defined remedies

Dissolution

Regulatory Action: REMEDY

YES: A regulation is defined in the state

TX Code § 11.303

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: V.T.C.A., Business Organizations Code § 11.303

Removal of Board Members

Regulatory Action: REMEDY

A regulation is NOT defined in the state

REMEDYT-BRDRMV-NS

REGULATORY BODY: Not Specific

NOTES: No

9 Oversight of professional fundraisers

Does the state require registration by commercial fundraisers?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

TX Code § 1804.052

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: According to https://texasattorneygeneral.gov/cpd/charities-nonprofits-registration-filings, commercial fundraisers only need to register if they are soliciting on behalf of public safety organizations. Solicitation on behalf of veterans orgs or law enforcement orgs requires that the solicitor be bonded, but there is no registration requirement. Tex. Occ. Code § 1804.052: Eligibility to use Solicitor; Tex. Occ. Code § 1804.054: Solicitor Registration Statement

TX Code § 1804.054

REGULATORY BODY: Not Specific

STATUTE TEXT:

Does the state require registration by fundraising counsel?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

FNDRAZE-COUNSL-NS

REGULATORY BODY: Not Specific

Does the state oversee commercial-coventuring (e.g. by requiring that the co-venture be registered or by requiring that the charitable organization files the co-venture contract)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

FNDRAZE-VENTUR-NS

REGULATORY BODY: Not Specific

Does the state require the fundraisers to provide notice to the regulator before any solicitation campaign (in addition to annual registration and/or filing the contract)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

FNDRAZE-NOTICE-NS

REGULATORY BODY: Not Specific

Does the state require specified disclosures to donors?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

TX Code § 1804.151

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Tex. Occ. Code § 1804.151

Does the state require a copy of any contract between a charitable organization and a commercial fundraiser or fundraising counsel be filed with the regulator?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

TX Code § 1803.053

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Only contracts between public safety orgs and their solicitors need be filed: Tex. Occ. Code § 1803.053

Does the state require annual financial reporting by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

TX Code § 1804.104

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Solicitors for veterans orgs must submit annual financial report:Tex. Occ. Code § 1804.104

Does the state require bonding of professional fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

TX Code § 303-059

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: YES: commercial telephone solicitors for law-enforcement charities must post bond with SoS in amount of $50k; Tex. Bus. & Com. Code § 303-059