CHCs and the THC
The THC is the state agency for historic preservation. Its mission is to protect and preserve the state’s historic and prehistoric resources for the use, education, enjoyment, and economic benefit of present and future generations. CHCs are part of county government and, as such, a partner to the THC. It is important for a CHC to understand the general organization of the THC, and the services provided by the agency. More about the THC and its commissioners is provided here and here. For a list of contacts for THC staff/services frequently used by CHCs, click here.
CHC Appointments
Texas Local Government Code, Chapter 318, directs county commissioners courts to make CHC appointments during January of odd-numbered years. Appointees serve a two-year term. County commissioners courts are directed to appoint individuals who broadly reflect the age, ethnic, and geographic diversity of the county. Appointees should have an interest in historic preservation and an understanding of local history and resources. All appointees must be willing and able to fulfill CHC responsibilities and attend commission meetings. Statutes do not limit the number of appointees but do set a minimum of seven appointees. Some CHCs allow non-county residents to serve on the commission. County commissioners courts are directed to fill a vacancy on the commission for the remainder of the unexpired term when an individual is unable to fulfill the two-year appointment. Statutes do not address officer positions or removal of CHC appointees. More information about CHC appointments is provided here.
CHC Meetings
A CHC is required by statute to meet at least four times per year but may meet as often as the commission deems appropriate. Many CHCs hold meetings in the county seat at the county courthouse for consistency. However, some CHCs host meetings in different communities. When determining the frequency and locations of meetings, consider the following:
- Requirements for CHC meetings to conform with Open Meetings Act.
- Location of commission members and distance from each other.
- Regular meeting location/days/times.
- Sufficient notice for appointees to attend.
- Types of meetings held, and length of time allotted for each.
- What must be addressed during full commission meetings and in committee meetings.
CHC Bylaws
Texas Local Government Code, Chapter 318, does not discuss CHC bylaws. CHCs establish bylaws for their own regulation. The THC does not provide templates for bylaws, nor does our staff provide training in this area. Should your CHC decide to implement bylaws, your county’s auditor and attorney should review the draft to ensure that language aligns with county and state policies. Recommendations for bylaws can be found here.
CHC Fiscal Matters
Money allocated, donated, or granted to the CHC is county money and should be kept in the county treasury. Decisions about financial matters should be discussed and approved by your county commissioners court. Your county auditor should help ensure fiscal matters conform to the regulations set forth by the county government. The THC does not have authority over CHC financial matters. Inquiries should be directed to county officials, your county auditor, and the IRS.
Counties may provide annual allocations to cover the costs of the CHC. While most counties provide monetary and in-kind support to CHCs, several counties do not. CHCs must take the lead in securing and maintaining county funding. CHCs can propose budgets to address specific needs, report to commissioners on the status of projects, and provide documentation for expenses and payment. Take advantage of in-kind donations of equipment and services provided by county government. Invite county officials to participate in events so they can see the value of CHC efforts. Be sure to thank county officials, partners, and private donors for support provided.
CHC Tax-Exempt Status and Charitable Contributions
Section 115 of the Internal Revenue Code exempts governmental subdivisions from paying income tax. Therefore, a CHC is exempt from paying the state sales and use tax when transacting business in the name of the CHC. The CHC should be prepared to supply a certificate of exemption from paying the Texas sales and use tax. Contact your county auditor to secure this documentation. As a subdivision of county government, monetary contributions made to CHCs are tax deductible. Refer to the IRS website, which states, "Charitable contributions to governmental units are tax-deductible under section 170(c)(1) of the Internal Revenue Code if made for a public purpose."
CHCs and Nonprofits
Some CHCs have established a nonprofit organization with 501(c)3 status, such as a “Friends of the Commission” that function in coordination with the CHC. Prior to creating a partner nonprofit, consider the costs, benefits, and consequences of doing so. If fundraising is the primary reason for creating a nonprofit, remember that appointees may raise funds in the name of the CHC. Efforts such as fundraising and grant writing will require time and attention from CHC appointees whose focus should be stewardship of historic resources. Nonprofits are private organizations while CHCs are public, political, subdivisions of the county. If formed, the bylaws of a nonprofit group for a CHC should state that all funds raised go to the CHC and ensure that work is consistent with the mission of the CHC. Consult an attorney before establishing a nonprofit corporation. More information on establishing a nonprofit is available on the Texas Secretary of State’s website.
