# Texas Booster Club Filing Requirements

> Texas booster club filing rules: Form 202, Comptroller Form AP-204 tax exemption, two tax-free sale days, raffle limits, UIL guidelines, and a yearly checklist.

- URL: https://boosterclub.org/states/texas/
- Section: States
- Updated: 2026-10-08

A Texas booster club incorporates with the Secretary of State for $25, then applies to the Comptroller of Public Accounts for franchise and sales tax exemption, because federal 501(c)(3) status (the Internal Revenue Service, or IRS, designation for charities) does not carry over on its own. Once approved, the club buys supplies tax-free and may hold two one-day tax-free sales each calendar year.

Texas has no general charitable registration. Raffles need no permit but are limited to clubs at least three years old, with no cash prizes and no statewide ticket sales, which the Attorney General reads to include online sales.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State | Form 202 | $25 | once |
| Annual/biennial report | Secretary of State | Form 802 periodic report | $5 | on request, at most every four years |
| State income/franchise tax exemption | Comptroller | Form AP-204 | No fee listed | once (application required) |
| Sales tax exemption on purchases | Comptroller | Exemption certificate (Form 01-339) | None | each purchase |
| Sales tax on fundraiser sales | Comptroller | Sales tax permit unless an exception applies | Confirm current fee with the agency | two tax-free days per year |
| Charitable solicitation registration | None | Not required | None | not required |
| Raffle permit/registration | None | No permit | None | up to four raffles per year |

## Forming a Nonprofit Corporation in Texas

The club files [Form 202, Certificate of Formation for a Nonprofit Corporation](https://www.sos.state.tx.us/corp/forms_boc.shtml), with the Secretary of State. The fee is $25 under the [fee schedule (Form 806)](https://www.sos.state.tx.us/corp/forms/806_boc.pdf). The certificate names a registered agent with a Texas street address to accept legal notices. Form 202 does not include the purpose and dissolution language the IRS requires, so the club adds it. See [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/).

Texas has no annual report for nonprofits. The Secretary of State may request a periodic report (Form 802, $5) at most once every four years. A club that misses the 30-day deadline forfeits its right to transact business and can be involuntarily terminated. The notice goes to the registered agent, so the club files Form 401 ($5) whenever the agent changes.

## State Tax Exemption

Federal exemption does not carry over. The club submits [Form AP-204](https://comptroller.texas.gov/forms/ap-204.pdf) with its IRS determination letter to the Comptroller's Exempt Organizations Section. The form lists no fee. The name on the IRS letter must match the certificate of formation.

Approval exempts the club from franchise and sales tax. Until then, a Texas nonprofit corporation files the franchise tax report or Public Information Report due May 15. A booster club is not covered by the school's exemption; the [Comptroller's booster club page](https://comptroller.texas.gov/taxes/exempt/booster.php) says each club applies on its own.

## Sales Tax

After approval, the club gives vendors an exemption certificate (Form 01-339) for purchases related to its exempt purpose. On sales, the club collects tax on taxable items unless one of these exceptions applies:

1. **Two one-day tax-free sales or auctions per calendar year.** They may run back to back for up to 48 hours. Items over $5,000 do not qualify unless donated or made by the club.
2. **Food at school.** Food, candy, and soft drinks are tax-free when sold during the school day under an agreement with the school, or at a concession stand at a school-sanctioned event when proceeds benefit the school ([House Bill 697](https://capitol.texas.gov/tlodocs/83R/billtext/html/HB00697F.htm), Tax Code Section 151.314).
3. **Vendor-run product sales.** When a for-profit company sells wrapping paper or candy through the club, the company remits the tax.

Spirit wear is taxable outside the two tax-free days. A club selling taxable items outside these exceptions needs a sales tax permit. See [Publication 94-183, School Fundraisers](https://comptroller.texas.gov/taxes/publications/94-183.php).

## Charitable Solicitation Registration

Texas has no charitable solicitation registration requirement for booster clubs. The [Attorney General](https://www.texasattorneygeneral.gov/divisions/charitable-trusts/registration-and-filings) requires registration only from certain law enforcement, public safety, and veterans organizations. Online fundraising does not trigger a Texas filing, though other states may require one.

## Raffles and Gaming

Raffles are legal under the [Charitable Raffle Enabling Act](https://www.texasattorneygeneral.gov/divisions/charitable-trusts/charitable-raffles-and-casinopoker-nights) (Occupations Code Chapter 2002). There is no permit. A raffle outside the Act is illegal gambling.

- **Eligibility.** The club holds 501(c) exemption and has existed for the three preceding years.
- **Frequency.** Up to four raffles per calendar year, raised from two in 2021.
- **Prizes.** No cash. A purchased prize may not exceed $75,000; donated prizes have no cap. The club must own the prize or post a bond with the county clerk.
- **50/50 raffles.** Prohibited, because the prize is cash.
- **Tickets.** Each ticket shows the club's name, the address of the club or an officer, the price, a description of each prize worth over $10, and the drawing date.
- **Advertising and online sales.** No paid mass-media advertising, and no statewide promotion except the club's website, newsletters, social media, or email to existing supporters. Statewide ticket sales are prohibited, and the Attorney General reads "statewide" to include the internet.
- **Proceeds.** No one is paid to run the raffle; all proceeds go to charitable purposes.

Casino and poker nights have no nonprofit exception. Bingo requires a license from the Texas Department of Licensing and Regulation, which replaced the Texas Lottery Commission on September 1, 2025.

## UIL Booster Club Guidelines

No Texas agency registers booster clubs as such. Rules specific to boosters come from the University Interscholastic League (UIL) [booster club guidelines](https://www.uiltexas.org/policy/guidelines-for-booster-clubs) and district policy. Coaches may not accept booster funds as pay (Section 1202(b)), and gifts to a coach are capped at $500 a year (Section 481). Money goes to the school to use at its discretion, with superintendent approval. Athletes may not receive anything not offered to all students (the Amateur Rule, Section 441).

## Annual Compliance Calendar for Texas

The fiscal year is the club's 12-month accounting year, set in its bylaws.

| Filing | Due date | Agency |
|---|---|---|
| Form 990-N | 15th day of the 5th month after fiscal year end: May 15 (calendar year), November 15 (June 30 year end) | IRS |
| Franchise tax or Public Information Report | May 15, until exemption is granted | Comptroller |
| Sales tax return | Assigned schedule, if permitted | Comptroller |
| Periodic report (Form 802) | 30 days after notice | Secretary of State |
| Tax-free sale days | Two per calendar year | Comptroller (no filing) |

## Common Mistakes in Texas

- **Assuming the IRS letter covers state taxes.** New treasurers skip Form AP-204, so the club pays sales tax on every purchase and receives franchise tax notices for reports never filed.
- **Raffling in the first three years.** Parents assume 501(c)(3) status is enough. The raffle is illegal gambling, usually discovered when a parent complains to the district.
- **Running 50/50 drawings at games.** Clubs copy professional teams, but cash prizes are banned for booster clubs.
- **Selling raffle tickets online.** Statewide sales are prohibited.
- **Letting the registered agent go stale.** The periodic report notice reaches a parent who left years ago, and the corporation is terminated.

## Checklist

### Forming

- [ ] File Form 202 with IRS purpose and dissolution clauses ($25)
- [ ] Obtain an EIN (Employer Identification Number) and 501(c)(3) status
- [ ] File Form AP-204 with the IRS letter (treasurer)
- [ ] File the May 15 Public Information Report if exemption is pending (treasurer)
- [ ] Get a sales tax permit if selling taxable items outside the exceptions
- [ ] Obtain written district approval (president)

### Every Year

- [ ] File Form 990-N by the 15th day of the 5th month after fiscal year end (treasurer)
- [ ] Choose the two tax-free sale days (treasurer)
- [ ] Confirm raffle eligibility and hold no more than four
- [ ] Get superintendent approval before fundraisers (president)
- [ ] File Form 401 when the registered agent changes

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Texas with other states.
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) covers fundraiser sales.
- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) summarizes raffle law.
- [How to File Form 990-N for a Booster Club](https://boosterclub.org/taxes/form-990-n/) walks through the federal filing.

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*This page is general information for volunteer-run booster clubs. It is not legal,
tax, or accounting advice, and BoosterClub.org is not a law firm, accounting firm, or
government agency. Rules change and vary by state and district. Confirm current
requirements with the IRS, the relevant state agency, the school district, and a
qualified professional before acting. If a fact on this page is out of date, we want
to know.*

## Sources

1. Texas Secretary of State: https://www.sos.state.tx.us/corp/forms_boc.shtml
2. Texas Secretary of State: https://www.sos.state.tx.us/corp/forms/806_boc.pdf
3. Texas Secretary of State: https://www.sos.state.tx.us/corp/nonprofitfaqs.shtml
4. Texas Secretary of State: https://www.sos.state.tx.us/corp/nonprofit_org.shtml
5. Texas Comptroller: https://comptroller.texas.gov/taxes/exempt/booster.php
6. Texas Comptroller: https://comptroller.texas.gov/taxes/exempt/501(c)-exemptions-1.php
7. Texas Comptroller: https://comptroller.texas.gov/forms/ap-204.pdf
8. Texas Comptroller: https://comptroller.texas.gov/taxes/publications/96-1045.php
9. Texas Comptroller: https://comptroller.texas.gov/taxes/publications/96-122.php
10. Texas Comptroller: https://comptroller.texas.gov/taxes/publications/94-183.php
11. Texas Comptroller: https://comptroller.texas.gov/taxes/franchise/
12. Texas Comptroller: https://comptroller.texas.gov/taxes/permit/
13. Texas Legislature: https://capitol.texas.gov/tlodocs/83R/billtext/html/HB00697F.htm
14. Texas Attorney General: https://www.texasattorneygeneral.gov/divisions/charitable-trusts/registration-and-filings
15. Texas Attorney General: https://www.texasattorneygeneral.gov/divisions/charitable-trusts/charitable-raffles-and-casinopoker-nights
16. Texas Legislature: https://capitol.texas.gov/tlodocs/89R/billtext/html/HB01842E.htm
17. Texas Legislature: https://tcss.legis.texas.gov/resources/OC/htm/OC.2002.htm
18. Texas Department of Licensing and Regulation: https://www.tdlr.texas.gov/media/pressrelease/2025-08-20-new-laws-affecting-tdlr-and-its-licensees-take-effect-september-1.pdf
19. University Interscholastic League (University of Texas at Austin): https://www.uiltexas.org/policy/guidelines-for-booster-clubs
20. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard