https :// www . sos . state . tx . us / corp / forms _ boc . shtml . You will be sent a copy of the law pertaining to nonprofit organizations which includes a sample copy of articles of incorporation that can be used as a model .
1 . You can find the forms for nonprofit incorporation here . Neighborhood associations are eligible to be considered as not-for-profit corporations .
2 . Fill out and return the application with the necessary fee that is appropriate for the type of status you have chosen for your corporation . Similar to the Application for Assumed Business Name , You may file and process payment for your application online through SOSDirect .
3 . Renewal : A corporation must file an annual fee and report statement . These are due once every four years after the date you incorporated . Renewal forms will be sent to registered agent . Make sure that your address is kept current with the State of Texas .
TAX EXEMPT STATUS
After the neighborhood organization is incorporated by the State of Texas , you may choose to receive Tax Exempt Status from the federal government . The federal government gives taxexempt status upon application to the Internal Revenue Service . This status permits large contributors to your group to deduct contributions from their income tax . Tax-exempt status is almost mandatory if your group plans to apply for foundation monies or solicit large donations .
I . Obtain not-for-profit corporation status with the State of Texas . As outlined previously , a neighborhood association may choose to become a corporation by writing Articles of Incorporation and applying to the State for status as a nonprofit corporation . However , being a nonprofit corporation does not automatically mean you are also tax-exempt . To receive a tax-exempt status , you must continue the process as outlined below .
II . File an application with the Internal Revenue Service using the IRS online application and following the steps outlined on the Application Process page located at https :// www . irs . gov / charities-non-profits / application-process . The form that your group will file and the status you receive depends on how your bylaws are written . If you are organized as an educational or charitable organization , you may be eligible for a 501 ( c ) ( 3 ) status . If you are organized as a “ civic league ,” you may receive a 501 ( c )( 4 ). Consult with an attorney before you make your final decision as to which organization form best meets your needs .
It is most advantageous to secure the 501 ( c )( 3 ) status . Having a 501 ( c )( 3 ) allows individuals or corporations to claim tax-deductible charitable contribution for any donation of money or goods to your neighborhood association . Your group should keep in mind that most foundations will only make grants to organizations with 501 ( c )( 3 ) tax-exempt status . If your organization is determined by the IRS to be exempt under 501 ( c )( 4 ), donors will not be able to claim their contributions as tax-deductible charitable gifts . Most foundations do not make grants to 501 ( c )( 4 ) organizations .
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