NON-PROFIT LAW

Texas Nonprofit FAQ Is a nonprofit corporation exempt from taxes in Texas? A Texas nonprofit corporation is not automatically exempt from federal or state taxes. To become exempt, it must meet certain requirements and apply with both the IRS and the Texas Comptroller of Public Accounts.

Texas Nonprofit FAQ Are the books and records of a nonprofit corporation available for inspection? The Texas Non-Profit Corporation Act and the Texas Business Organizations Code require nonprofit corporations to maintain financial records and minutes of certain proceedings and make them available to members for examination and copying. The board of directors is required to […]

Does a nonprofit corporation file IRS Form 990 with the Secretary of State? No; however, under certain circumstances, a nonprofit corporation files Form 990 or 990-PF with the Charitable Trust Section of the Texas Attorney General.

Texas Nonprofit FAQ Can a nonprofit corporation pay a salary to its officers, directors and/or employees? Yes. Any corporation may pay reasonable compensation for services rendered to the corporation.

Texas Nonprofit FAQ Can a nonprofit corporation give political contributions? Generally, political and social action activities are permissible purposes for a nonprofit corporation; however, certain activities may affect a nonprofit corporation’s tax-exempt status. For more information, contact the Texas Ethics Commission, (512) 463-5800, the Federal Elections Commission, or the IRS.

Texas Nonprofit FAQ Can one person be the sole director and officer of a nonprofit corporation? The Texas Non-Profit Corporation Act and the Texas Business Organizations Code require a nonprofit corporation to have at least three directors, one president, and one secretary. The same person cannot be both the president and secretary. Officers and directors […]