Texas Nonprofit FAQ
Are the books and records of a nonprofit corporation available for inspection?
The Texas Non-Profit Corporation Act and the Texas Business Organizations Code require nonprofit corporations to maintain financial records and minutes of certain proceedings and make them available to members for examination and copying. The board of directors is required to prepare or approve an annual financial report. In general, all records, books, and annual reports must be available to the public for inspection and copying. These provisions do not apply to (1) corporations that solicit funds only from their members; (2) corporations that do not intend to solicit and do not actually receive contributions in excess of $10,000 during a fiscal year from sources other than their members; (3) proprietary schools; (4) religious institutions; (5) trade associations or professional associations whose principal income is from dues and member sales and services; (6) insurers; (7) charitable organizations concerned with conservation and protection of wildlife, fisheries, or allied natural resources; or (8) alumni associations.
Under certain circumstances, a nonprofit corporation’s books and records are available to the public under the Texas Open Records Act (chapter 552 of the Government Code). Section 552.003(1)(A) of the Open Records Act defines “governmental body” to include the “part, section, or portion of an organization, corporation, commission, committee, institution, or agency that spends or that is supported in whole or in part by public funds.” For more information on the Open Records Act, contact the Attorney General.