What’s New for Texas Nonprofit Corporations?

1.
Under the Texas Non-Profit Corporation Act, a nonprofit corporation was required to specify the purpose or purposes for which the nonprofit corporation was formed. However, pursuant to section 22.051 of the BOC, a nonprofit corporation may be formed for any lawful purpose or purposes not expressly prohibited under title 1, chapter 2, or title 2, chapter 22, of the BOC.
2.
Please note however that while the BOC allows a general purpose clause other laws, including the Internal Revenue Code, may require that the certificate of formation provide a limited or more specific purpose clause as a basis for granting a license or tax-exempt or tax-deductible status. If utilizing the Secretary of State form 202, please use the additional spaces provided in Article 5 of the form to set forth a more specific purpose or purposes. The “Supplemental Provisions/Information” section of the form may be used to include additional information or optional provisions.