Texas Booster Club Filing Requirements

Forming a Nonprofit Corporation in Texas

The club files Form 202, Certificate of Formation for a Nonprofit Corporation (external site), with the Secretary of State. The fee is $25 under the fee schedule (Form 806) (external site). 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.

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 agentRegistered agentThe person or company designated to receive lawsuits and official state notices for the corporation at a street address in the state. Some states call it a resident agent or statutory agent.All terms, 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 (external site) 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 (external site) 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 (external site), 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 (external site).

Charitable Solicitation Registration

Texas has no charitable solicitation registrationCharitable solicitation registrationRegistration with a state office, usually the attorney general or secretary of state, before asking the public for donations, typically renewed each year with a financial report. Whether it is required, and the thresholds and fees, vary by state.All terms requirement for booster clubs. The Attorney General (external site) 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 (external site) (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 (external site) 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.