David Contreras, Past LULAC National Historian - Strengthening the Shield: Why IRS Compliance is the Key to LULAC’s Future

Strengthening the Shield: Why IRS Compliance is the Key to LULAC’s Future

By: David Contreras, Past LULAC National Historian

For nearly a century, LULAC has stood as a beacon of civil rights, powered by the grassroots energy of its councils. But as any builder knows, the strength of a structure depends entirely on the integrity of its foundation. Today, that foundation is being reinforced through a critical, if technical, process: IRS and EIN compliance.

In September 2025, a sobering report reached LULAC National leadership. The data suggested that as many as 60% of our 418 councils were potentially non-compliant with federal tax requirements—either lacking an Employer Identification Number (EIN) or having had their non-profit status revoked by the IRS.

While "tax filings" might sound like dry administrative work, in the world of non-profit governance, they are the difference between a legitimate community engine and a "paper council."

Progress on the Ground: The Texas Example

As of May 1, 2026, we have seen a significant breakthrough. Approximately 50 existing Texas LULAC councils have successfully navigated the bureaucracy to receive their State of Texas incorporation certificates.

This is more than a administrative win; it is a badge of legitimacy. To obtain these certificates, these councils had to secure or validate their IRS-EINs. This "positive action" is exactly the momentum we need. If councils in other states follow this lead, LULAC will emerge from this convention season stronger, more transparent, and legally sound.

The Stakes: Voting Rights and Good Standing

You might ask, "Why does an EIN matter if we are doing good work in the community?" The answer lies in the fairness of our democratic process.

Being in "Good Standing" is the prerequisite for participation in our democracy. It grants a council the privilege to:

• Send delegates to District, State, and National conventions.
• Cast votes that shape the future of our organization.
• Hold officer positions at every level of leadership.

As we approach the Texas State Convention in San Antonio  (May 28-30) and the National Convention in Fort Worth  (June 17-20),  consistency is vital. When we allow "paper councils"—groups that exist only on a roster without legal or financial standing—to participate in elections, we dilute the voices of the councils doing the real work.

The Path to Transparency

With the 2026 election cycle now upon us, the membership deserves a clear "road map." To ensure our conventions are beyond reproach, we must have clarity on three essential points:

1. Uniform Standards: A definitive confirmation that IRS compliance is a mandatory requirement for a council to be seated and for its members to hold office.
2. Equitable Enforcement: Assurance that these rules apply equally to every council to prevent any appearance of selective enforcement or "nebulous" interpretations of the Charter Agreement.
3. The Right to Inspect: Under the Texas Business Organizations Code, members have a right to transparency. We must ensure that the list of voting councils and their assigned vote counts are accessible and verified against their IRS filing status.

A Turning Point for Integrity

LULAC’s power has always been its moral and legal authority. To uphold that authority, we must be as diligent with our fiduciary responsibilities as we are with our advocacy.

The recent success of our Texas councils proves that compliance is possible. It isn't a hurdle meant to trip us up; it is a shield meant to protect us. By ensuring our councils are IRS-compliant, we aren't just following the law—we are ensuring that the "Voice of the Mainland" remains loud, legal, and legitimate for the next hundred years.

Is your council ready? The deadline for the Texas State Convention is May 18, 2026. I encourage all members to verify their council’s EIN status immediately. Ensuring your "Good Standing" now is the only way to guarantee your voice is heard in the halls of our convention.