Texas skips a step almost every other state makes you take: there's no general charitable solicitation registration here. That doesn't mean there's nothing to do; you still have to form the corporation correctly and get through the IRS. Here's the full path.
Your entity name must be distinguishable on the records of the Texas Secretary of State from every other registered name. Search the SOSDirect business name database before you commit to a name. You can also reserve a name for 120 days for a fee if you're not ready to file yet.
Texas doesn't call it "Articles of Incorporation." You'll file Form 202, Certificate of Formation for a Nonprofit Corporation, with the Secretary of State. File online through SOSDirect or by mail to the Austin office.
Filing fee: $25. Credit card payments carry a 2.7% convenience fee. Check the Secretary of State's site for the current fee before filing.
If your nonprofit is managed by a board (the standard structure), Texas requires a minimum of three directors, each a natural person; there's no Texas residency requirement. You'll also need a registered agent: an individual Texas resident or an entity registered to do business in Texas, with a real street address (not a P.O. box or answering service) where they can accept service of process during business hours. Your corporation can't act as its own registered agent.
After your Certificate of Formation is filed, get your EIN from the IRS using Form SS-4 (free, instant online). Then apply for federal tax-exempt status: Form 1023-EZ if you qualify (under $50,000 in projected annual gross receipts, under $250,000 in assets), or the full Form 1023 otherwise. See our First 90 Days checklist for the full federal walkthrough, current fees, and what to expect on processing time.
Most states in the U.S. require nonprofit organizations to register with a state charity office before they can solicit donations. Texas does not.
Texas has no general statewide charitable solicitation registration requirement. If you're a typical 501(c)(3) operating in Texas and fundraising from Texas residents, you do not need to register with any state agency before asking for donations. This makes Texas one of roughly 10 states nationwide with no blanket registration rule.
However, there are three narrow exceptions. If any of these apply to your organization, you must register:
If your organization uses the words "police," "law enforcement," "fire," "firefighter," "emergency medical service," or similar public-safety-related terms in your name or fundraising materials, you must register with the Texas Secretary of State under the Public Safety Solicitation Act.
What you do: File a registration statement (Form 3201–3206 depending on whether you're the organization, an independent promoter, or a solicitor) with the Secretary of State. Filing fee: $250 for the organization. You'll also need to post a surety bond. Filing page: Texas SOS Form 3200 Series FAQs.
If your organization is specifically designated as a veterans organization and you solicit donations from veterans or the public on behalf of veterans, you must register with the Texas Secretary of State under the Veterans Solicitation Act.
What you do: File a registration statement (Form 3501) with the Secretary of State. Filing fee: $150. If you use a paid solicitor, that person must also register (fee: $500) and the organization must post a surety bond. If your organization collected more than $500 in solicited funds in the prior calendar year, you must file an annual report (Form 3503) by January 15, with a $50 filing fee. Filing page: Texas SOS Form 3500 Series FAQs.
You don't need to register with the state to run a raffle, but there are strict rules if you want to hold one legally.
Your organization can hold up to four raffles per calendar year if it meets these requirements: (1) you have a 501(c)(3) determination letter, (2) your organization has been in existence for at least three years, and (3) you follow Texas raffle rules (no cash prizes, total prize value capped at $75,000, all tickets sold in person or by mail; no online sales, 30% expense cap on gross receipts, local promotion only, not statewide advertising). See the Texas Attorney General's raffle page for the full rules.
Your federal 501(c)(3) status does not automatically exempt you from Texas state taxes. You must separately apply to the Texas Comptroller of Public Accounts for state tax exemption.
A 501(c)(3) nonprofit in Texas can be exempt from two state taxes:
Submit Form AP-204, "Texas Application for Exemption – Federal and All Others," to the Texas Comptroller along with a copy of your IRS 501(c)(3) determination letter.
Key requirement: the organization name on your IRS letter must match your legal organization name (as listed in your articles of incorporation). If your IRS letter is more than four years old, you'll need to request a current verification letter from the IRS first.
Send the application to: Comptroller of Public Accounts, Exempt Organizations Section, or submit online through their website. Contact them at (844) 519-5677 (toll-free) or exempt.orgs@cpa.texas.gov.
Once approved by the Comptroller, you'll receive Form 01-339, a "Texas Sales and Use Tax Exemption Certification." Present this to vendors when making tax-free purchases for your organization's charitable work.
The exemption covers purchases directly related to your organization's mission. Personal items (even for employees) don't qualify.
Texas gives nonprofits a unique benefit: your organization can hold two separate one-day tax-free sales per calendar year (or back-to-back for up to 48 consecutive hours). During these sales, you don't collect sales tax from customers.
You must apply with the Comptroller and receive exemption status before holding the sale. This doesn't apply to items priced over $5,000 unless your organization manufactured or donated the item.
Texas requires nonprofit corporations to file a periodic report with the Secretary of State listing your current officers and board directors. However, it's not annual; the Secretary of State will send you notice when it's your turn to file, which happens not more than once every four years.
When you receive notice, you have a filing deadline. File on time (the form fee is $5) or risk forfeiture of your right to transact business in Texas. If you miss the deadline, you have 120 days to cure the default. If you don't file within that 120-day period, the Secretary of State will involuntarily revoke your nonprofit status in Texas.
You still must file your annual Form 990, 990-N, or 990-EZ with the IRS (covered in our First 90 Days guide). Texas doesn't duplicate this requirement, but missing it is serious; the IRS can revoke your 501(c)(3) status automatically if you miss the filing deadline for three consecutive years.
Texas makes this straightforward compared to most states: there's no general charitable solicitation registration, so you can start fundraising immediately after your 501(c)(3) letter arrives. Your main task is getting your state tax exemption from the Comptroller (Form AP-204). If you're a public safety or veterans organization, add that registration to the list. If you want to run raffles, learn the rules. Beyond that, you're on federal filing and periodic reporting schedules, just like nonprofits everywhere.
For detailed guidance on your specific situation, contact the Texas Comptroller at (844) 519-5677 or the Texas Secretary of State at (800) 648-9642.