In Texas, a non-profit can be either
1) a Non-Profit Corporation, or
2) an unincorporated nonprofit association
Just looking at the forms and instructions, I see very little difference. There may be a slight difference on annual reporting to the state. But I'm sure a lawyer could point out whatever they are.
If I were starting from scratch, I'd definitely look at incorporating. My PTO was set up several years ago as an unincorporated nonprofit association. I don't know if there was a specific reason or if maybe the choices were more limited back then. We have our exemption at the state level for sales tax and our 501(c)(3) status with the IRS, so I haven't seen a need to revisit it, fill out new forms, pay a filing fee, etc. I'd also have to explore whether I could transfer the existing association (paperwork wise) or would I need to delete/dissolve it at the state level before starting the new paperwork to incorporate. It just hasn't been a priority for us since we've existed "as is" for 15 years.
[This message has been edited by JHB (edited 02-21-2001).]
I just know when I called the state to ask what we needed to do to register our organization with them, they sent this one-page form, for incorporation. It seems simple enough and a $25 fee is needed when returning form. This is why I don't understand why other PTO's would not incorporate. For those of you who have not incorporated, did you register with your state as an unincorporated PTO? Thanks!
Our charter school became incorporated last year to better help us purchase our new site (well new to us), but I'm new to the idea of a parent teacher group needed such. I remember a TON of paperwork and meetings for the school- is it that much easier for a group? Why would you need to do this? Our school and group are four years old that's why you have intrigued me.
I would also like to hear from others on this. What I've read seems to indicate incorporation is suggested primarily to reduce/remove personal liability from the individuals that run the organization. I suspect the reason most don't incorporate has to do with 1) not knowing if they should or what the process is, 2) the fees involved, 3) the complexity of the application, 4) not wanting to get into yet more paperwork and reporting.
I know in our state it looks like it involves filling out a fairly simple form and paying a $25 filing fee. It's probably something we should do. But frankly I hesitate to add any more layers of formality and legal reporting to this organization. Like many others, I thought I was "taking on a little volunteer work" - basically heading a booster club. Instead I find I am running a non-profit business, wading through state requirements, IRS filings, personal liability issues, volunteer mangement, etc. I know "head in the sand" isn't exactly the ideal approach, but I haven't done anything about incorporation yet and I'm not sure I will. But, again, I'd love to hear from any of you who know more about this issue.
When I called our state [MO] and asked them to send me forms that I needed to register as a non-profit organization, they sent me a form entitled " Articles of Incorporation of a Nonprofit Corporation". In several of the by-laws on this post, I see that they are for an "unincorporated" organization. What is the difference? Are there any benefits for not being incorporated?
