Rules
Nonprofit donor mobilization in Texas: state law, Texas Ethics Commission, and IRS rules
Texas guide to nonprofit donor mobilization: charitable solicitation registration, Texas Ethics Commission limits, IRS substantiation, and donor data privacy rules.
What to take away
- Texas charitable solicitation registration runs through the Texas Attorney General's Charitable Trusts Section, not the Texas Ethics Commission.
- The Texas Ethics Commission covers political contributions and lobby activity, so most donor appeals stay outside its filing duties.
- The IRS requires substantiation for gifts of $250 or more and disclosure for quid pro quo contributions.
- Texas donor data privacy expectations flow from the Texas Data Privacy and Security Act and FTC security guidance, even where nonprofits are exempt.
- A Texas donor mobilization plan pairs county-level list hygiene with channel tests and clear reporting.
Texas solicitation registration basics
Most Texas nonprofits must register with the Texas Attorney General's Charitable Trusts Section before soliciting gifts from Texas residents. The office reviews initial registration and annual filings. Exemptions exist for some religious, educational, and volunteer groups, so confirm your status in Austin before a campaign goes live.
Texas vs Federal Filing Triggers
Texas AG
- Soliciting donors
- Register
- Political contributions
- No
- Annual return
- State filing
- Donor gifts $250+
- No
Texas Ethics Commission
- Soliciting donors
- No
- Political contributions
- Report
- Annual return
- No
- Donor gifts $250+
- No
IRS
- Soliciting donors
- No
- Political contributions
- No
- Annual return
- Form 990
- Donor gifts $250+
- Acknowledge
Registration is separate from IRS recognition. A 501(c)(3) determination letter does not replace state registration. The Texas Attorney General can seek penalties for soliciting without registration, so treat the filing as a calendar item.
The table below shows the main Texas and federal filing triggers.
| Task | Office | Trigger |
|---|---|---|
| Charitable solicitation registration | Texas Attorney General Charitable Trusts Section | Soliciting Texas donors |
| Political contribution reporting | Texas Ethics Commission | Making political contributions or lobbying |
| IRS annual return | IRS | Gross receipts above filing threshold |
| Donor substantiation | IRS | Gift of $250 or more |
Texas Ethics Commission versus charitable registration
The Texas Ethics Commission is not the charity regulator. It handles campaign finance, lobby registration, and personal financial statements for state officials. A nonprofit enters Texas Ethics Commission territory only when it makes political contributions or spends money to influence legislation.
Does TEC Apply to You?
Do you make political contributions or lobby?
Track TEC thresholds and deadlines
Stay with charity registration only
If your donor mobilization includes issue advocacy, track Texas Ethics Commission filing thresholds and reporting deadlines separately from your charity registration. Mixing the two calendars creates missed filings and avoidable fines.
IRS reporting and substantiation duties
The IRS requires a written acknowledgment for any single gift of $250 or more. The letter must include the amount, whether goods or services were provided, and a good faith estimate of their value. A quid pro quo contribution over $75 also triggers disclosure.
IRS Receipt and Return Checklist
- Acknowledge gifts of $250 or more in writing
- State amount and goods or services provided
- Give good faith value estimate
- Disclose quid pro quo over $75
- File 990-N, 990-EZ, or 990 by gross receipts
The IRS explains written acknowledgment and quid pro quo disclosure rules for charitable organizations, and those rules shape every receipt and thank-you note. IRS substantiation and disclosure rules
Annual reporting depends on gross receipts. Form 990-N is for small charities, Form 990-EZ covers mid-size groups, and Form 990 applies to larger organizations. Texas registration and IRS reporting run on different calendars, so assign both to one owner.
Texas donor data privacy expectations
The Texas Data Privacy and Security Act took effect July 1, 2024. It gives Texas residents rights over personal data, but it exempts many nonprofit organizations. Even with that exemption, donor expectations and grant contracts often require a privacy notice, access controls, and breach response.
The Texas Identity Theft Enforcement and Protection Act requires notice after a breach of personal information. The FTC offers data security guidance that applies to donor records held by nonprofits. FTC data security guidance
A Texas donor mobilization guide should include a data map. List where donor names, addresses, gift amounts, and email addresses live. Then limit access to staff who need it for receipts, stewardship, or audit.
Example: a Dallas donor reactivation sequence
A Dallas food bank with 12,000 lapsed donors can run a Texas-compliant reactivation sequence in six weeks. The steps below keep state registration, IRS receipts, and donor privacy aligned.
- Clean the list against Texas address changes and email bounces.
- Send a written acknowledgment template to legal review for $250 gifts.
- Run an A/B test on the donation page headline and gift array.
- Add a CAN-SPAM footer with a working unsubscribe link, because the FTC compliance guide covers email rules for nonprofit appeals. FTC CAN-SPAM compliance guide
- Report results to the board with net revenue per 1,000 emails.
For groups that also run federal advocacy email, review how email journeys in Washington, D.C. add FEC disclaimers and IRS substantiation. email journeys in Washington, D.C.
If paid ads are next, decide which social media for nonprofit advertising earns the first test based on donor intent and staff time. which social media for nonprofit advertising
Set the program inside a broader plan, because nonprofit marketing strategy in 2027 starts with mission task and donor trust evidence. nonprofit marketing strategy in 2027
