Unincorporated Nonprofit Association

An unincorporated nonprofit association is defined as an unincorporated organization consisting of three or more members joined by mutual consent for a common, nonprofit purpose.

The Uniform Unincorporated Nonprofit Association Act, Chapter 252 of the Texas Business Organizations Code reforms the common law concerning unincorporated nonprofit associations in some respects. Under the Act, an unincorporated nonprofit association is treated as a separate legal entity as opposed to an aggregate of individuals for certain matters.

The Act addresses a limited number of major issues; namely, the authority of the entity to acquire, hold, and transfer property, especially real property, in its own name; the authority to sue and be sued as an entity; and the contract and tort liability of the officers and members of the nonprofit association.

The Act applies to all unincorporated nonprofit associations, whether or not the entities are tax exempt under the provisions of state or federal law. An unincorporated nonprofit association is defined as an unincorporated organization consisting of three or more members joined by mutual consent for a common, nonprofit purpose.

The Act provides for two discretionary filings: a statement of authority to transfer an estate or an interest in real property filed in the real estate records in the office of the county clerk and the appointment of an agent authorized to receive service of process on behalf of the nonprofit association filed with the Secretary of State.