A nonprofit corporation (the status of most homeowner associations) is allowed to engage in some revenue-producing activities without violating its nonprofit status.

Sixty percent (60%) or more of the gross income of the association must consist of membership dues, fees, and assessments for it to qualify for nonprofit status. Rev. & Tax Code §23701t(a)(1).

Associations with significant non-dues income should talk to a CPA who specializes in homeowners associations.