The Process of Starting a Non-profit

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The Process of Starting a Non-profit

The first thing one needs to establish a non-profit entity is the interest to start one. The National Center for Charitable Statistics indicates that by 2009 Texas was home to more than 104,000 non-profit establishments. Therefore, before starting a non-profit organisation, the founder or founders must determine the necessity for the organisation (May & Texas, 2011). Conduct a research to determine whether a similar organization is in existence within their location and server a similar cause. Working together helps to avoid saturating effects of raising funds and voluntary time available in the region. It is also important to take into account fiscal sponsorship under 501(c), an umbrella organisation that incubates non-profit charitable non-profit organisations (Harbor Compliance, 2013).
It is important to consider and chose a legless structure. These range from B-Corporation, non-profit LLC, unincorporated non-profit association, L3C, to trusts (May & Texas, 2011). It is necessary to learn about the structure before settling one. However, it is important to note that B-Corporations are present in Texas. The founder must conduct a name search to check the availability of the desired name. Texas State provides this information through its search engine in the Secretary of State Database. Alternatively, one may reserve a name through emailing the state department through its mail or by calling (512) 463-5555.
Next step is the recruitment of incorporator and/or preliminary directors. Incorporators/organisers execute the creation of the certificate and submission to the state departments. Texas requires a minimum of one incorporator. The state demands a minimum of three director of the organisation.
It is a must to appoint an agent who is registered. The funders must identify a non-profit’s Texas approved Agent. The reception of notices of lawsuits as well as additional legal services for the corporation is done by these individuals (Cornforth & William, 2014). One must receive a certificate of formation to start organizing the non-profit corporation. The certificate must be submitted to Texas State Secretary at, which is the state’s online portal. The applicants must fill form 202 which is needed for the Certificate of Formation of a non-profit corporation. The form is then mailed or faxed to the secretary of state for action. A fee of $25 is incurred,and the turnaround is about 3-5 days. All these are governed by Texas statues – Business Organization Code- Title 2: Corporation- Chapter 22: Non-profit Corporation.
A specific language is required by the IRS in the article of incorp.............

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