Texas nonprofits face a defined set of annual compliance requirements, and problems often begin when one of them is missed or misunderstood. Each year, your organization must complete specific state filings, federal tax reports, and internal governance steps to remain in good standing and protect its tax-exempt status. When deadlines slip or records fall behind, the consequences can escalate, even for well-run nonprofits. A clear, repeatable checklist helps you stay compliant and address requirements before they turn into larger issues.
Texas Franchise Tax and Public Information Report Deadlines
Most Texas nonprofits must interact with the Texas Comptroller of Public Accounts each year, even when no franchise tax is owed. While many organizations qualify for franchise tax exemption, that status does not eliminate all filing duties.
Depending on how the Comptroller classifies your organization, you may need to file a Franchise Tax Report or No Tax Due Report and, in some cases, a Public Information Report identifying officers and directors. The typical deadline is May 15, and missing it can lead to forfeiture of good standing, which can affect contracts, financing, and liability protections.
Federal IRS Filings to Maintain Tax-Exempt Status
Annual reporting to the Internal Revenue Service is one of the most visible compliance obligations for nonprofits. The IRS uses different Form 990 versions based on annual gross receipts and assets.
Which form you file depends on your organization’s size:
- Form 990-N (e-Postcard) for smaller nonprofits with minimal gross receipts
- Form 990-EZ for mid-sized organizations
- Form 990 for larger nonprofits
These filings are due on the 15th day of the fifth month after the end of your fiscal year. Missing filings for three consecutive years leads to automatic revocation of federal tax-exempt status, which can be difficult and expensive to fix.
Texas Secretary of State Filings and Registered Agent Review
Your nonprofit must remain in good standing with the Texas Secretary of State, even if no annual report is required.
Each year, you should confirm that your registered agent and registered office information remain accurate and that any changes to directors or officers have been properly documented in your internal records. If the registered agent resigns or cannot be reached, the organization risks losing notice of lawsuits or state correspondence.
Internal Governance Tasks Nonprofits Often Overlook
Compliance is not limited to government filings. Internal records matter, especially if your organization is audited, applies for grants, or faces board disputes.
Annual governance tasks often include:
- Holding and documenting board meetings
- Approving an annual budget
- Reviewing conflict-of-interest disclosures
- Confirming compliance with bylaws
Meeting minutes should reflect decisions made and votes taken. These records show that the board is actively overseeing the organization, which supports liability protection and public credibility.
Charitable Solicitation and Fundraising Compliance in Texas
Texas does not require a general charitable solicitation registration, but fundraising compliance still requires attention.
Depending on how you raise funds, you may need to:
- Register with other states if soliciting donations across state lines
- Review donor acknowledgment practices
- Ensure fundraising agreements with consultants comply with Texas law
Online fundraising and email campaigns can trigger multi-state obligations, even for small nonprofits.
Employment, Volunteer, and Insurance Reviews
Annual compliance reviews are also a practical time to revisit operational risk areas that affect nonprofit stability. This often includes confirming payroll tax filings and worker classifications, reviewing volunteer policies and waivers, and checking insurance coverage, including directors and officers insurance. Addressing these items annually helps reduce exposure and supports continuity as leadership and board members change.
What Happens If a Nonprofit Misses Annual Requirements?
Consequences vary based on the filing missed, but they can include:
- Loss of good standing with the state
- Penalties or interest on late filings
- Revocation of tax-exempt status
- Increased scrutiny from regulators or donors
Most issues are easier to fix when caught early. Delays tend to compound, especially when multiple years are involved.
Simplify Your Nonprofit’s Annual Compliance
Annual nonprofit compliance works best when it follows a repeatable process tied to your fiscal year and board calendar. When you know what must be filed, when it is due, and who is responsible, compliance becomes routine instead of reactive.
At Hubbs Law, we help Texas nonprofits stay organized, compliant, and prepared year after year. Contact us to discuss your organization’s annual requirements, review upcoming filings, or build a compliance calendar that fits how your nonprofit operates. We can help you move forward with clarity.