Non-profit organizations use profits to advance their programs rather than distribute to owners, and fall into categories like trade associations, charities, social clubs, government groups, and political groups. Forming a non-profit requires filing articles of incorporation and bylaws with the state, as well as an IRS application for tax exemption which has various fees depending on the type of determination required. This document provides information on the legal requirements and process for establishing a non-profit organization in Texas.

1. THINKING OF
FORMING A NON-
PROFIT??

2. By-laws
Articles of incorporation
Texas application for exemption
Table of Content
What is Non-Profit Organization?
Articles of Incorporation
Texas Application for Exemption
Wilson's non profit consulting

3. What is a Nonprofit Organization?
The difference between nonprofit and for-profit organizations is that nonprofits use their
profits to advance their programs, while for-profits distribute their profits to their owners
or stockholders. Nonprofit organizations fall into five main categories:
1) Trade associations, organized to advance a group of people who have a profession in
common (for example, Association of Research Librarians, International Association of
Meeting Planners). This group also includes chambers of commerce and unions.
2) Charitable organizations, which must generally demonstrate a benevolent component.
This is a diverse category, including religious groups, museums, environmental and
educational organizations, libraries, and the many helping groups referred to as
"charities." They are also referred to as 501 (c)(3) organizations, because that is the
number of the IRS Code under which they are described.
3) Social clubs, such as country clubs and fraternal organizations.
4) Governmental groups, including city, county, state, and federal agencies.
5) Political groups, generally organized to promote certain policies, issues, or candidates
for political office.

4. Articles of Incorporation
This legal document outlines the general purpose and structure of the organization and its
intent to operate exclusively with a nonprofit purpose. The articles are filed with the state
government if and when the nonprofit is incorporated. They usually follow a standard
form and contain a minimum of detail because they are cumbersome to change.
What are Bylaws?
Nonprofit bylaws are the rules and methods that your organization follows to insure
legality and productivity. Nonprofit bylaws by themselves are more of an internal
document than required in United States, but a well planned and clear structure will take
out the guess work and corruption out of your organization especially in time of
disagreement between board members. This is the document that specifies the election
process of directors, your meeting manners, the role of the employees, and many more
roles. Take your time when it comes to drafting your bylaws, it’s the make or break it
document.
Fees for Filing 501c through the IRS
Issue/Type of Request Office of Jurisdiction User Fee
Exemption application user fees EO Determinations
• Organizations with annual gross receipts ≤
$10,000 during preceding 4 years (Form
1023 or Form 1024)
• 501(c)(3) organizations with annual gross
receipts ≤$50,000 and assets ≤$250,000
(Form 1023-EZ)
$400
• Organizations with annual gross receipts >
$10,000 during preceding 4 years (Form
1023 or Form 1024)
$850
Group exemption requests EO Determinations $3,000

5. Other determinations EO Determinations
• Regulations section 301.9100 relief in
connection with applications for recognition
of exemption
None
• Advance approval of set-asides (Code
section 4942(g)(2))
$1,000
• Advance approval of voter registration
activities (Code section 4945(f))
$1,000
• Section 4945 advance approval of
organization's grant making procedures
(Form 8940)
$1,000
• Exemption from Form 990 filing
requirements
$400
• Advance approval of "unusual grant" $400
• Determination of Type of a section 509(a)(3)
organization
$400
• Reclassification of foundation status,
including a voluntary request from a public
charity for private foundation status
$400
• Termination of private foundation status
under section 507(b)(1)(B) - advance ruling
request or notice under section 507(a)(1) or
507(b)(1)(B)
$400
• Other determination letters under the
jurisdiction of the Determinations office
$400
Accounting method changes (Form 3115) EO Determinations None
Accounting period changes (Form 1128) EO Determinations None
Canadian registered charities EO Determinations None
Confirmation of exemption (to replace lost
exempt status letter, and to reflect name and
address changes)
EO Determinations
None
Qualified subsidiaries of section 501(c)(25)
organizations
EO Technical
$2,250
Section 514(b)(3) neighborhood land use rule EO Technical None
Section 4943(c)(7) extensions of disposal period EO Technical
$10,000

6. Section 6104(d) harassment campaign letter
rulings
EO Technical
None
Letter rulings EO Technical $10,000

7. Wilson's non profit consulting
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