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Nonprofit Organization Attorneys in Texas

6 min read

  • 3 firms listed
  • 4 questions answered

Starting a nonprofit takes more than a mission. Forming a Texas nonprofit corporation is straightforward, but federal tax exemption under Section 501(c)(3) depends on the organization’s documents, structure, and activities, and the IRS Form 1023 application asks detailed questions about governance, finances, and programs. After exemption, annual filings, limits on private benefit and political activity, and unrelated business income rules apply for the life of the organization.

Texas adds its own steps: state tax exemptions from the Comptroller, periodic reports to the Secretary of State when requested, and registration for certain kinds of fundraising. Churches, private foundations, business leagues under 501(c)(6), and social welfare organizations under 501(c)(4) each follow different rules than other public charities. Nonprofit attorneys help organizations choose the right structure, obtain exemptions, and stay compliant as they grow. Charitable gifts in an estate plan are covered in the guide to estate planning attorneys in Texas, and tax planning in the guide to tax law attorneys in Texas.

What Nonprofit Attorneys Handle

Formation and Tax Exemption

A Texas nonprofit corporation is formed by filing a certificate of formation with the Secretary of State (Form 202; filing fee $25) and adopting bylaws. To qualify for 501(c)(3) status, the certificate of formation should include a purpose clause and a dissolution clause that meet IRS requirements, or the exemption application can run into problems. Attorneys prepare Form 1023 (IRS user fee $600) or, for eligible smaller organizations, Form 1023-EZ (user fee $275), and then apply to the Texas Comptroller for state tax exemptions.

Governance and Compliance

Directors owe fiduciary duties to the organization. Attorneys advise on board structure, officer roles, meetings, voting, and conflict of interest policies. Most exempt organizations must file an annual Form 990, 990-EZ, or 990-N; churches, their integrated auxiliaries, and certain other church-affiliated and governmental organizations are not required to file, and private foundations file Form 990-PF instead, according to the IRS. An organization that fails to file a required annual return or notice for three consecutive years automatically loses its tax-exempt status (26 U.S.C. § 6033(j)). In Texas, the Secretary of State may require a nonprofit corporation to file a periodic report, but not more than once every four years (Business Organizations Code § 22.357).

Fundraising Registration

Under Texas law, most charities and nonprofit organizations are not required to register with the State. Registration with the Attorney General or the Secretary of State is required for certain law enforcement related organizations that solicit by telephone, public safety organizations and their solicitors, and veterans organizations and their solicitors, according to the Texas Attorney General. Organizations that solicit in other states may need to register there.

Transactions and Restructuring

Nonprofits sign contracts and leases, license intellectual property, form joint ventures with for-profit companies, merge, and dissolve. Attorneys structure these transactions to protect exempt status and follow the required procedures.

Employment and Compensation

Nonprofits follow the same employment laws as other employers, with added issues such as volunteer management and clergy compensation. Compensation of insiders must be reasonable and documented to avoid excess benefit transactions. Attorneys draft policies and review pay arrangements.

How to Choose a Nonprofit Attorney

Nonprofit focus. Tax-exempt law is technical. Choose an attorney who regularly represents nonprofit organizations.

Your type of organization. Public charities, private foundations, churches, business leagues, and social welfare organizations have different rules. Ask about clients like you.

Practical guidance. Look for advice that supports the mission while keeping the organization compliant, explained in plain terms.

Ongoing support. Formation is the beginning. Ask whether the firm offers continuing counsel as the organization grows.

Texas Nonprofit Attorneys

Cullinane Law Group

Location: Austin, Texas (serves nationwide)

Website: https://www.cullinanelaw.com

Phone: 512-542-9898

Cullinane Law Group works exclusively with nonprofit and tax-exempt organizations. The firm works with 501(c) nonprofits of various types, including public charities, schools, churches, business leagues, arts organizations, and international NGOs. Services range from formation to ongoing compliance, corporate restructuring, transactions, and tax reinstatement.

Practice Focus:

  • 501(c)(3) and 501(c)(6) formation
  • Tax-exempt status applications
  • Governance and compliance
  • Mergers and restructuring
  • Fundraising law

Perliski Law Group

Location: Dallas, Texas

Website: https://www.texasnonprofithelp.com

Phone: 214-865-7542

Perliski Law Group represents over 100 nonprofit clients ranging from small churches to large statewide organizations. Principal attorneys have more than 30 years of experience with nonprofit formation, including 501(c)(3) charities, private foundations, churches, and business leagues. The firm offers flat fee packages and discounted rates for nonprofits. Formation services include 12 months of support and board training to ensure organizations begin operations with proper understanding of their obligations.

Practice Focus:

  • Nonprofit formation
  • Church and religious organization law
  • Tax exemption applications
  • Board training and governance
  • Ongoing nonprofit counsel

Brewer, Lang & Veach

Location: Grapevine, Texas (Dallas-Fort Worth area)

Website: https://blvlawfirm.com

Phone: 817-410-2345

Brewer, Lang & Veach focuses on representing religious organizations and public charities. Attorneys handle formation through complex transactions, advising on governance, compensation issues, intellectual property protection, employment policies, and liability minimization. The firm works with large established organizations and individuals launching new ministries alike. Practice areas include nonprofit formation, federal and state tax exemption, governance compliance, employment matters, and intellectual property.

Practice Focus:

  • Religious organization representation
  • Public charity formation
  • Nonprofit governance audits
  • Employment and volunteer policies
  • Intellectual property protection

Costs and Fees

Formation and exemption work is often priced as a flat fee or package, separate from the $25 Secretary of State filing fee and the IRS user fee of $600 for Form 1023 or $275 for Form 1023-EZ. Ongoing compliance counsel is billed hourly or under an annual retainer, and some firms offer reduced rates for small organizations. Ask for a written quote that lists what is included.

Frequently Asked Questions

How long does it take to get 501(c)(3) status?

It depends on the form and on IRS workload. Form 1023-EZ applications are generally decided faster than full Form 1023 applications, and complex applications or IRS requests for more information add time. Check the IRS’s current processing information when you file. Forming the Texas corporation itself is a separate, faster step with the Secretary of State.

What is the difference between a public charity and a private foundation?

Public charities receive broad support from the public or government, or carry out activities such as schools, hospitals, and churches. Private foundations are usually funded by a single source, such as a family or company, and face stricter rules, including minimum annual distributions, an excise tax on net investment income, and self-dealing restrictions. Most new organizations seeking broad public support are set up as public charities.

Can a nonprofit make a profit?

Yes. A nonprofit can take in more than it spends; what it cannot do is distribute profits to private owners or insiders. Surplus should be used for the mission. Income from a regularly carried on business that is not substantially related to the exempt purpose can be subject to unrelated business income tax.

Does my Texas charity need to register before fundraising?

Usually not with the State of Texas. Registration is required only for certain law enforcement related organizations that solicit by telephone, public safety organizations, and veterans organizations, and their solicitors. Other states have their own registration rules if you solicit there.

Sources

Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.