Strong Families Tax Credit Program

No, only certain nonprofits will meet the specific criteria outlined in Texas Tax Code, Chapter 171, Subchapter P.

Eligible organizations must:

• Be recognized by the Internal Revenue Service (IRS) as a tax-exempt, charitable organization under Section 501(c)(3) of the Internal Revenue Code
• Be to conduct business in Texas, as verified by an “Active” status on the Texas Comptroller of Public Accounts Franchise Tax Account site
• Have provided qualifying services in Texas for at least three years
• Not directly or indirectly provide abortion services, or offer information related to abortion services
• Have received no more than 50% of total annual revenue from state or local government sources in the prior state fiscal year (September 1, 2025 – August 30, 2026), including school districts or other political subdivisions of the state

An organization must have experience providing one of the following for at least three years prior to the date of application:

• Comprehensive case management services for at-risk families based on an assessment of family strengths and needs, including assisting families in achieving self-sufficiency and stability and encouraging workforce participation; OR
• Fatherhood services and resources to assist fathers in learning and improving parenting skills and being more engaged in their children’s lives through in-school programs and online resources

At-risk family means a family with at least one child or a pregnant woman and at least one of the following:

• A child in the family has been the subject of an investigation of abuse, neglect, or exploitation by the Texas Department of Family and Protective Services;
• The family or a pregnant woman in the family is experiencing conditions that increase the likelihood of involvement with the child welfare, criminal justice, or juvenile justice systems; OR
• The family or a pregnant woman in the family is experiencing other conditions that threaten the self-sufficiency or stability of the family or the birth or health of a baby.

(Texas Human Resources Code § 137.002)

Comprehensive case management services means a structured and client-centered process that:

• assesses family strengths, needs, and barriers;
• develops individualized goals and service plans related to stability, self-sufficiency, and workforce participation;
• connects families to appropriate services and supports;
• provides ongoing engagement, coaching, and follow-up; and
• tracks progress toward improved family stability and economic well-being.

Comprehensive case management involves ongoing support and engagement with families over time. It is intended to go beyond one-time referrals or limited assistance.

Online services targeting fathers’ parenting skills and engagement in their children’s lives may range from providing virtual classes and meetings to posting actionable resources on your website for fathers to reference. 

Eligible organizations must submit a completed application and all required supporting documentation through OneStar Foundation’s application process. Application instructions, timelines, and required forms will be available on the OneStar website.

Organizations may be required to submit documentation demonstrating eligibility, including proof of 501(c)(3) status, organizational history, service descriptions, financial information, and other materials related to program compliance.

A designated contribution is a monetary donation made by a taxable entity to a certified organization for the purpose of supporting eligible services and activities under the Strong Families Tax Credit Program.

Designated contributions must be directed to an organization that has been certified by OneStar Foundation as eligible under the program and may only be used for eligible purposes consistent with state law. The contributions must be specifically identified by the donor and acknowledged by the certified organization as intended for purposes of the Strong Families Tax Credit program.

Certified organizations must:

• Conduct local, state, and national background checks for all individuals working directly with children in programs funded by designated contributions
• Use designated contributions only to serve Texas residents
• Limit administrative expenses to no more than 5% of designated contributions
• Submit the organization’s most recent IRS Form 990 annually 
• Provide certificates of contribution to donors
• Submit copies of certificates of contribution to the Comptroller within 30 days
• Obtain certification before receiving designated contributions

A Certificate of Contribution is a required document provided to a donor confirming their donation is eligible to be considered a designated contribution under the Strong Families Tax Credit program. A template Certificate of Contribution is available. A copy must be submitted to the donor and the Texas Comptroller within 30 days of the contribution. The contribution may result in a tax credit if funds remain available at the time all conditions for the tax credit have been met.

After submitting the eligibility application, the organization will be directed to a secure payment platform to pay the $20 application fee. Accepted payment methods include credit or debit card, PayPal, Venmo, Cash App Pay, or ACH. Payment instructions will also be included in the confirmation email sent upon successful submission of the application.

If your organization needs to remit payment via check, please contact info@onestarfoundation.org for assistance.

Applications are reviewed on a first‑come, first‑served basis and will not be evaluated until the applicable fee has been received. Organizations should expect to receive a determination within two weeks of submitting a complete application.

No. Certification only confirms that an organization is eligible to receive designated contributions under the program. OneStar Foundation does not award funding or guarantee that an organization will receive contributions from donors.

Failure to comply with statutory or program requirements may result in corrective action, suspension or revocation of certification, or other actions permitted under applicable law, which may include making the organization ineligible to receive designated contributions under the program. 

Eligibility is valid for one year and the expiration date will be stated on the certification letter. Organizations must reapply for certification if they wish to continue receiving designated contributions beyond that period.

No. Taxpaying entities seeking to receive the Strong Families Tax Credit must apply directly through the Texas Comptroller’s office and comply with any applicable reservation or reporting requirements. Nonprofit organizations cannot apply for or reserve tax credits on behalf of contributing donors.

Taxpayer questions related to the credit can be directed to the Comptroller’s Office through the general help line for franchise tax at (800) 252-1381. You may also submit questions through the online form available at: https://comptroller.texas.gov/web-forms/tax-help/

The Strong Families Tax Credit is limited to $5 million per state fiscal year and will be administered by the Texas Comptroller’s office on a first-come, first-served basis. The Comptroller plans to use a reservation system for taxable entities seeking to claim the credit and may maintain a waitlist if available credits are fully reserved.

OneStar Foundation’s role is limited to certifying eligible nonprofit organizations and does not include administration of tax credit reservations or awards. A nonprofit’s certification will remain valid for the applicable certification period, including into the next program year unless revoked or otherwise expired.

The program expires on January 1, 2029, though credits earned before that date may still be carried forward by donors under the statute.

It is up to the nonprofit organization whether to accept donor restrictions on designated contributions. However, designated contributions must support eligible services and activities under the Strong Families Tax Credit program, and nonprofit organizations must ensure that any donor restrictions do not conflict with program requirements or applicable law.

Participation in the Strong Families Tax Credit program is not anticipated to affect a nonprofit organization’s charitable status or the potential tax-deductible nature of donations made to the organization, including designated contributions. However, the federal and state tax treatment of charitable contributions and tax credits may vary based on individual circumstances. Donors and organizations should consult their tax advisors regarding the tax treatment of designated contributions and any associated tax credits.

OneStar Foundation may maintain a public list of certified organizations eligible to receive designated contributions under the program.

No. Certification by OneStar Foundation only confirms that an organization has met the eligibility requirements established under the Strong Families Tax Credit program. Certification does not constitute an endorsement, recommendation, or approval of the organization by OneStar Foundation or the State of Texas.

OneStar Foundation is a nonprofit organization established to support volunteerism, national service, nonprofit capacity, and community resilience initiatives across Texas, including disaster preparedness and recovery efforts. OneStar operates in partnership with the State of Texas through Executive Order RP-30 and subsequent direction from the Governor of Texas, and the organization’s board members and CEO are appointed by the Governor. Under state financial reporting standards, OneStar is reported as a component unit of the State of Texas. The Texas Legislature designated OneStar Foundation to administer nonprofit certification for the Strong Families Tax Credit program.