The Texas Attorney General has the legal authority to investigate charities that operate as non-profit corporations and inspect the books and records of all corporations, including non-profit corporations. In Texas, statutes are a must for all non-profit corporations. To comply with the law, your board of directors must adopt the bylaws at its first organizational meeting, as stated in section 22,102 (202) of the Texas Bus Organization. The regulation of non-profit organizations in Texas involves a complex set of rules that govern nonprofit organizations and charitable giving throughout the state.
A non-profit corporation is created by filing a certificate of incorporation with the Secretary of State in accordance with the Texas Business Organizations Code (BOC).Organizations that are granted 501 (c) status are political education organizations and can participate in political lobbying activities. These include organizations such as the Red Cross and Habitat for Humanity, as well as the American Civil Liberties Union and the Lucy Burns Institute, which offer, as defined in the federal code, “education to the public on topics useful to the individual and beneficial to the community.” A non-profit corporation is created by submitting a certificate of incorporation to the Secretary of State in accordance with the Texas Business Organizations Code. The Foundation Center states that there are more than 1.5 million non-profit organizations in the United States. Ideally, this group would advocate for the interests of its organization in all areas, from finance to public relations. To be exempt, a non-profit organization must meet certain requirements and file a request with both the Internal Revenue Service and the Texas Comptroller of Public Accounts.
While the Internal Revenue Service designates non-profit charitable organizations that qualify and are exempt from federal taxes, individual states require their own level of regulation and reporting, especially when organizations try to request contributions to raise funds. This elected group acts as the government of your organization in everything from finance to the mission of the non-profit organization. Before forming the board of directors of your Texas nonprofit organization, it's important to understand their role in ensuring your organization's success. The Texas Law Enforcement Telephone Request Act (LETSA) regulates certain law enforcement-related organizations that engage in telephone solicitation in the state of Texas. Organizations classified as 501 (c) (these are non-profit charitable, religious and educational organizations) must also comply with this act. If you're still in the process of developing your non-profit organization in Texas, choosing the right board members is key to ensuring its effectiveness and stability.
It is essential to select individuals who have experience in managing a non-profit organization or have knowledge about fundraising or public relations. The board should also include members who have expertise in areas such as finance or legal matters. Having a diverse board will help ensure that all aspects of your organization are taken into consideration.
