The Texas Secretary of State definition of a nonprofit is:
A nonprofit corporation is created by filing articles of incorporation with the secretary of state in accordance with the Texas Non-Profit Corporation Act ("TNPCA"), articles 1396-3.02 amd 1396-3.03. "Non-profit corporation" means a corporation no part of the income of which is distributable to members, directors, or officers [TNPCA, article 1396-1.02A(3)]. A nonprofit corporation may be created for any lawful purposes, which purposes must be fully stated in the articles of incorporation. Not all nonprofit corporations are entitled to exemption from state or federal taxes.
What does it take to start a nonprofit organization?
There are many details and steps necessary in starting a nonprofit organization. The following online resources and books will provide guidance. It is important to have your application for tax-exempt status and other legal documents reviewed by an attorney with appropriate legal expertise.
The Office of the Secretary of State is a recommended starting point. The Frequently Asked Questions web page http://www.sos.state.tx.us/corp/nonprofitfaqs.shtml provides specific requirements and forms.
Other Helpful Online Resources:
(updated December 2010)
- Articles of Incorporation Forms http://www.sos.state.tx.us/corp/forms_boc.shtml
- The Foundation Center of Nonprofit Management http://foundationcenter.org/getstarted/nonprofits/;jsessionid=EEOPYTKO21OINLAQBQ4CGW15AAAACI2F
- ALTAFF - Citizens for Libraries http://www.ala.org/ala/mgrps/divs/altaff/index.cfm
- Internal Revenue Service http://www.irs.gov/charities/index.html
- Texas State Comptroller http://www.window.state.tx.us/taxinfo/exempt/index.html
- Texas Nonprofit Management Assistance Network http://www.txnetwork.org/pages/libraries.asp
- National Council of Nonprofits http://www.councilofnonprofits.org/
- Texas Association of Nonprofit Organizations (TANO) http://www.tano.org
There are several books available for check out from the Professional Collection of TSLAC. Suggested titles:
- Am I Liable? Responsibilities & Liabilities of Texas Nonprofit Organization Directors by Glen A. Yale
- The Complete Guide to Nonprofit Management by Smith, Bucklin & Associates
- Forming and Funding Public Library Foundations by Faye Clow
- Friends of Libraries by Sandy Dolnick
- How to Form a Nonprofit Corporation 6th Edition by Attorney Anthony Mancuso
- How to Form a Nonprofit Corporatation in All 50 States by Attorney Anthony Mancuso
- Managing a Nonprofit Organization by Thomas Wolf
- Nonprofit Corporations, Organizations, & Associations by Howard L. Oleck
- A Nonprofit Organization Operating Manual by Arnold J. Olenick