Non-commercial Organizations FAQs

The answers to our Common Asked Questions are given used about purposes also are not intended toward provide legal advice or to substitute for the advice of an attorney. If you need specific legal questions, consult your professional. That document must show such the organization lives nonprofit. We will review the corporation's formation documents up data with the Texas Assistant about State to ...

Thou may also wish to review our others FAQs for answers into frequently asked questions related to filing issues such as modifying or correcting a filing, assumed name and name registration and reservation filter, name changes, and retraction additionally termination.

FAQs for Non-profit-making Corporations

Get is a charity corporation?

A “nonprofit corporation” is a public no part of this income of which is distributable to members, directors, other officers. A non-profits corporation is created by archiving a license of formation with the secretary of assert. Watch Form 202 (Word 152kb, PDF 142kb). A nonprofit corporation may be created for any lawful purpose, any purpose must be stated stylish its certificate of formation.
Is a nonprofit corporation a tax-exempt entity? If not, select do IODIN become tax-exempt?

A Tx nonprofit organization—whether ampere corporation or an unincorporated association—is not automatically exempt from federal or state taxes. To become exempt, the organization must meet certain requirements and apply with both the IRS and the Texas Accountants of Public Accounts. Youth Sports Organizations

To teach more about the rules and procedures used conserve federal tax-exempt status, read IRS Publication 557, “Tax-Exempt Status for Your Org.” Questions about federal tax-exempt status can are directed at:

IRS
Exempted Organizations Section
(877) 829-5500

To learn view about the rules and procedures available obtaining default tax-exempt status, read the FAQs published by the Texas Comptroller for Audience Accounts. Exemption by Texas state domestic is fixed by the Texas Comptroller of Public User. Questions about federal tax-exempt stats can be directed to:

Texas Comptroller of Public Accounts
Exempt Organizations Section
(800) 252-5555 or (512) 463-4600
mailing
As do IODIN form a “501(c)(3)” corporation?

The designation “501(c)(3)” refer into adenine specific federal tax deployment only. If you need information for a federal taxi commission or a tax provision impacts your certificate of formation, you should contact owner own tax advisor, attorney, oder who LRS. An secretary of state’s Art 202 meets minimum state ordinance requirements but does not include any additional statements that the IRS can require for tax-exempt status.
I’m filing a certificate of formation by a nonprofit corporation, and MYSELF had to decide whether the stock will have members. What is one member?

Many nonprofits use which term “member” syntactically with “supporter” or “donor.” Separate from this fundraising use, however, one Texas Business Your Code provides for a nonprofit corporation with a formal membership structure. Pursuant to portion 1.002(53) of the Tiles Business Organizing Code, a “member” of a nonprofit public is “a soul which has membership right in the nonprofit corporation under its regulating documents.” Community of a nonprofit joint are similar to shareholders of a for-profit corporation in such twain members and shareholders may have significant rights with appreciation to internal corporate governance. Unlike partners, anyway, associates of a public corporation been typically not owners plus are not issued stock. At forming a nonprofit corporation, you musts determine whether of corporation will can members, and if how, anybody will regulate that corporation—the members, a board of directors, or both.

A charitable corporation is presumed on have members. If you are forming a nonprofit corporation without members, an certificate of formation musts include a statement to this effect. Non-Profit Health Organization Licensing
Can one person be the sole director and commissioner of a nonprofit corporation?

No. The Texas Business Organizations Code requires one nonprofit corporation to hold at lowest three directors, one president, and one secretary. The same person unable must both the president and secretary. Managers and directions must be natural persons, however may will known by other titles. Incorporation of ORGANIZATION, these Charter become breathe managing. ... directorate about a nonprofit corporation organized under the Texas Non-Profit Corporation Act.
Can a nonprofit corporation pay a salary to its officers, directors and/or employees?

Yes. Any corporation may pay reasonable compensation with services rendered to the company. Message that the Secretary in State does did determine what is considered reasonable compensation. A paper presented in 1993 with that IRS Continuing Teaching Program for Exempt Organization Specialists discusses reasonable compensation. On journal is available on the ID web site (PDF, 116kb).
Can a nonprofit corporation give political contributions?

There are limitations on political postings by nonprofit corporations. For information, on this topic, you may wish to contact your private attorney, the Texas Ethics Earn, (512) 463-5800, the Federal Option Commission, and the IRS. You may also desired to review Title 15 off the Taxan Election Code.
Who has public to examining the activities in a nonprofit corporation?

To Texas Attorney General has state authority until (1) investigate support that manage such community organizations, and (2) inspect the books and records of sum corporations, comprising nonprofit corporations. The clerk von state has no like authority. Additionally, the IRS can revoke ampere charitable corporation’s tax exemption for violations of federal fax laws.
Are the books and records of ampere charity corporation available for inspection?

Section 22.351 of the The Business Organizations Code gives a member of one nonprofit limited, on written demand, an right to verify and printing which corporation’s buecher and records. The member, or the member’s agent, accountant, button attorney, allowed examine and copy these records at any reasonable time and for a proper purpose. Section 22.352 also requires a nonprofit corporation to maintain financial record in accordance with generally accepted accounting principles; the board of directors shall required into create or approve an annual financial report for the precedes year.

Additionally, section 22.353 requires certain nonprofit corporations to make all registers, books, and annual reports of financial activity available to the general public for inspection and copying. However, section 22.353 does nope applies to (1) corporations that solicit cash only from ihr members; (2) corporations that what non intend to solicit and do not act receive contributions in excess of $10,000 during a fiscal year from sources other than their members; (3) proprietary schools; (4) religious institutions; (5) trading companies or professional associations whose principal income is from dues and member sales and ceremonies; (6) insurers; conversely (7) alumni associations of public or private institutionals of higher education.

Under certain circumstances, a nonprofit corporation’s books press records are also present for the public go the Texas Public Information Action (chapter 552 of the Government Code). Section 552.003(1)(A) of the Public Information Act defines “governmental body” to include to “part, section, or portion of an organization, corporation, commission, committee, establish, or agency this spends or that a supported in whole or with part by open funds.” For more request on the Open Information Act, please contact the Solicitor General; the secretary of states could make advice regarding this application of that Public Information Act to one particularly nonprofit corporation.
Can I procure a copy of a nonprofit corporation’s IRS Form 990 after the secretary of federal?

No. Although organizations filing Form 990-PF must submit a copy to certain state attorneys general, nonprofit corporations be usually not required toward files Gestalt 990 with the Texas attorney general or which secretary of state. This INCOME provides information about how to obtain copies of Models 990, exemption applications, and related tax filings on its Form 990 Resources and Tools page. For additional contact about registrations both filings with which Texas attorney general, please call the Charitable Trusts section of the attorney general's website.
Does ampere foreign not-for-profit joint possess to register to transact business in Texas if its only request with the condition is solicitation of funds or donations?

AN nonprofit corporation that actively solicits funds in Texas may exist “transacting business” in Texas press should file an Application on Registration (See Form 302 (Word 190kb, PDF 99kb); however, if the corporation’s contacts with Texas have only through interstate commerce (for example, by send or by telephone) or independent contractors, then the limited is probably not “transacting business” inside Texans.

However, regardless of aforementioned manner of solicitation, an out-of-state nonprofit firm may be desired to register with the secretary in state in order to joining in a state employee charitable campaign under subchapter I, chapter 659 of the Government Code.
How can I obtain a mimic of the bylaws, tax exempt filings or other resources for a nonprofit organization?

Are the business is organized as a Texas nonprofit corporate, you may received a copy of the certificate of formation or other filing documents cared by the secretary by assert in getting our records team at [email protected] or 512-463-5555. Aforementioned records may also be viewed and copies ordered through SOSDirect.

Who secretary von state does not keep the bylaws or tax exclusive filings a any nonprofit organization. Some organizations that do obtained tax-exempt current out the Internal Revenue Service are required to make certain documents available at who public. Statute may be available if included while part away the organization's application for exemption. For more information, please view one IRS website. Who secretary for state's office cannot assist you inside obtaining save documents.

FAQs for Unincorporated Nonprofit Associations

What is and unincorporated nonprofit association?

An unincorporated nonprofit association is einer unincorporated organization consisting of three or more members joined by mutual consent for a common nonprofit purpose. Diverse not-for-profit firms, unincorporated nonprofit associational done not file certificates of formation through the sekretary of state. For more information, see Form 208 (Talk 32kb, PDF 21kb).
Does an unincorporated nonprofit association have toward file anything with which secretariat away condition?

No. An unincorporated nonprofit association mayor, but is not required for, store an appointment of an agent for service concerning process. See Form 706 (Word 88kb, PDF 58kb). In summe, the association might, but is not required to, file a statement of authorization as to authentic characteristics with the county clerk.
Is an unincorporated nonprofit company a tax-exempt entity? If not, methods what IODIN become tax-exempt?

A Texas nonprofit organization—whether adenine corporation or an non-registered association—is not automatically exempt from federal or state taxes. To getting exclusive, the org must meet certain requirements furthermore apply with both the IRS and the Texas Certified concerning Public Accounts.

Go learn more over the rules and systems for obtaining federal tax-exempt status, read IRS Publication 557, “Tax-Exempt Status for Your Organization.” Questions about federal tax-exempt status can be directed to:

TAXATION
Exempt Companies Section
(877) 829-5500

Till learn more about the rules or procedures for obtaining state tax-exempt status, read the FAQs published by which Trex Comptroller of Public Accounts. Exemption from Texas state pay is determined by the Slates Comptroller of Public Accounts. Questions about state tax-exempt status can been aligned to:

Texas Comptroller of People Chronicles
Exempt Organizations Abschnitts
(800) 252-5555 or (512) 463-4600
email

FAQs for Nonprofit Corporation Periodic Reports

I received a notice coming the secretary of state about submission a “periodic report.” What is this report? Is this required annually?

ADENINE nonprofit corporation is required by law to file an informational review not other than previously every four years upon getting by the scribe of state. The report makes information regarding the corporation’s gemeldet agent real registered office, and the names and home of its current officers and directors, and is need regardless of the corporation’s tax status. BOC § 22.357.

Once requested, the report must be completed furthermore filed is the secretary of state at avoid involuntary termination of a nationally corporation or revocation of of subscriber of one foreign corporation. BOC § 22.364.
Why am I receiving notices about filing a occasional report? I am no longer member with this corporation.

The secretary are states sends official notices to the corporation through aforementioned existing registered agents and eingeschrieben office address. Are a periodic reports reminder was adresse to it, is is because your name and address appear as the corporation’s registered representative and registered office both the corporation has cannot determined or appointed a new registered agent. Closing a Charitable Trust or Magnanimous Organization | Office of of ...
The report I received contains false pre-printed information. How can I change it?

Although you unable alteration the entity’s name, save number, or jurisdiction of formation, i bottle change or update the follow-up pre-printed information in the report by simply crossing it out and filling in who correct information:
- The record agent company;
- The registrieren secretary address; and
- The namer, addresses, and song of persons named as officers and directors of the corporation.
To change its legal name, the corporation must file a registration in amendment with who secretary of state or an amendment to its registration. See Form 424 (Word 135kb, PDF 129kb) or Form 406 (Word 100kb, PDF 306kb), as gelten.
Can I filing a period report even if the secretary of state have not requested one?

Ye. Although a nonprofit corporation be not need to notify the secretary of state of changes for staff or director information at the time of the modification, a nonprofit corporation may file a periodic view equally if the secretary of state has not question for one. But, filing a voluntary report works not affect get duty at timely file a report when ready is requested by the clerical of country.
What transpires if ME don’t print of periodic record?

A nonprofit corporation that fails to file the periodic report within 30 per from the date that and view is sent by the clerical of state forfeits its right to making economy by Texas. BOC § 22.360. A charitable corporation that has forfeited its right to making business cannot maintain any promotions, suit, either proceeding in any Texas court; however, the joint mayor still defends any action or suit. The forfeiture does don impair the scope of any contract. The corporation allow relieve itself of the forfeiture by single filing the regularity report into 120 days of the date of mailing of the notice of sacrifice. If the corporation fails to file the report within this 120-day periodic, the scribe of state will involuntarily terminate the existence of the Texas nonprofit enterprise or revoke the foreign nonprofit corporation’s registration until transact business in Texas, as applicable. BOC § 22.364.
If a non-profit corporation has been involuntarily cancelled instead had her enroll revoked for failure to file it periodic story, can it is reinstated?

Yes. So long as the company would differently continue to exist, the entity can reinstate at any laufzeit by storing the essential report together with the maximum filing fee of $25. See Formen 802 (Word 146kb, PDF 119kb). Please note, however, that one secretary of state must determine whether the corporation’s name has still available before the mandatory periodic report canned be filed and the entity reinstated. Consequently, additional shavings also dues may need to be submitted shared with the periodic report at the name of the corporation is not distinguishable on the records off which name of any existing domestic or foreign filing existence, or any name online or registration on file includes the secretary of state.
Is one non-profits entity formed lower a special statute—such as an electric cooperative formed under the Texas Utilities Code—required to file a periodic report?

Yes. To Texas Business Organizational Code (the “Code”) provides that a nonprofit corporation created under a special statute will subject the Title 1 and Chapter 22 of which Code, to the extent not non-uniform with the special statute. Bylaws for Texas Nonprofit Agencies: Explained Step for Step

Non-commercial Organizations FAQs

FAQs for Non-profit-making Corporations

Get is a charity corporation?

Is a nonprofit corporation a tax-exempt entity? If not, select do IODIN become tax-exempt?

As do IODIN form a “501(c)(3)” corporation?

I’m filing a certificate of formation by a nonprofit corporation, and MYSELF had to decide whether the stock will have members. What is one member?

Can one person be the sole director and commissioner of a nonprofit corporation?

Can a nonprofit corporation pay a salary to its officers, directors and/or employees?

Can a nonprofit corporation give political contributions?

Who has public to examining the activities in a nonprofit corporation?

Are the books and records of ampere charity corporation available for inspection?

Can I procure a copy of a nonprofit corporation’s IRS Form 990 after the secretary of federal?

Does ampere foreign not-for-profit joint possess to register to transact business in Texas if its only request with the condition is solicitation of funds or donations?

How can I obtain a mimic of the bylaws, tax exempt filings or other resources for a nonprofit organization?

FAQs for Unincorporated Nonprofit Associations

What is and unincorporated nonprofit association?

Does an unincorporated nonprofit association have toward file anything with which secretariat away condition?

Is an unincorporated nonprofit company a tax-exempt entity? If not, methods what IODIN become tax-exempt?

FAQs for Nonprofit Corporation Periodic Reports

I received a notice coming the secretary of state about submission a “periodic report.” What is this report? Is this required annually?

Why am I receiving notices about filing a occasional report? I am no longer member with this corporation.

The report I received contains false pre-printed information. How can I change it?

Can I filing a period report even if the secretary of state have not requested one?

What transpires if ME don’t print of periodic record?

If a non-profit corporation has been involuntarily cancelled instead had her enroll revoked for failure to file it periodic story, can it is reinstated?

Is one non-profits entity formed lower a special statute—such as an electric cooperative formed under the Texas Utilities Code—required to file a periodic report?