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Nonprofit Law updates from Cullinane Law Group. Feb. 2014
Cullinane Law Group

Update Governments Agencies

Lately we have talked with many nonprofits that have lost compliance with government agencies. It can be time consuming and expensive to start from scratch with re-applications to government agencies.

Check that your organization has updated the appropriate government agencies of certain changes:
  • Address and contact information
  • Articles of Incorporation or Certificate of Formation
  • Bylaws (significant changes may require notifying certain agencies)
  • Modification to the organization’s fiscal year (may require that you notify specific agencies).

State Agency Updates

Check with your Secretary of State and State Comptroller for more information on state-specific reports.
  • Changes of registered agent or agent’s address – In Texas, changes should be filed using the Secretary of State’s form
    • Note: If a nonprofit fails to maintain a current registered office or agent, then anyone suing the organization may serve the Secretary of State instead. In that case, a judgment may be taken against the organization without its knowledge.
  • Amendments to the Articles of Incorporation or Certificate of Formation - In Texas, any changes to the name of the nonprofit or other provisions of the Certificate of Formation must be filed with the Secretary of State.
  • Every four years file a 9.01 Report (Form 802) – On this report, Texas nonprofits must provide the names and addresses of the corporate officers, the address of the corporation’s principal office, and the name and address of the agent for service of process to the Secretary of State.
  • Notify the Attorney General of any lawsuit in which the nonprofit is involved.
  • State Taxing Office. They may be reports to be filed with your state's Comptroller, as well. 

Update IRS

  • Changes in the name, Certificate of Formation, and Bylaws of the nonprofit – Notify the IRS exempt organizations manager for your state. For Texas nonprofits, update the IRS office at Exempt Organizations, 1100 Commerce, Dallas, Texas 75242, or send the updated information with the nonprofit’s next Form 990.
  • Changes in proposed budgets may affect public charity status – The IRS classifies a nonprofit as a public charity on the basis of budget information supplied when the nonprofit applied to receive its 501(c)(3) status as a public charity. If the level of public support that enabled the nonprofit to qualify as public charity changes substantially, the nonprofit could be reclassified as a private foundation.
  • Changing the nonprofit’s accounting period – If the nonprofit wants to change its fiscal year, it must file IRS Form 1128 by the 15th day of the 5th month following the close of the new fiscal year. Example: Current fiscal year runs from January 1 to December 31; new fiscal year to run from October 1 to September 30. Form 1128 is due on February 15th of the following year. Learn more...
  • And the big one...file your IRS Form 990 on time.
photo of Mollie Cullinane
Mollie Cullinane
 

We work exclusively with nonprofits + social enterprises.

We help you turn your passion or cause into an organization that can make a difference.


We serve foundations, charities, professional athletes, religious organizations, social enterprises, and do-gooders throughout the United States who seek to create positive change.


Based in Austin, Texas.
Clients Nationwide.

512.298.2898
hello@cullinanelaw.com


Jeff Cullinane

Client Highlight: Keep Austin Fed

Keep Austin Fed is an all-volunteer nonprofit that delivers healthy and consumable food that would otherwise be thrown out to Austinites in need.

"It's not rocket science. We're just taking good food from the west side of town to the east side," volunteer Ira Kaplan said. "It's only 10 miles away, but to get it those 10 miles, it takes a volunteer with a car. That's all."

About two dozen volunteers drive food around town, delivering 200 to 500 meals every other day. 

"If you look around, there's food to be gotten from any place, and there's no reason for that food to go to waste," Kaplan said. "You're not composting and you're not recycling. You're actually feeding people who need it."

"The greatest use of good fresh food is not to put it in a compost bin," he said. "It's to feed other people with it."

Some donors: Trader Joe's, Kerby Lane Cafe, Snap Kitchen, TacoDeli. 

Some recipient agencies: Austin Resource Center for the Homeless, Easter Seals, Foundation Communities, SafePlace.


Learn more here

Q/A: What is the difference between "nonprofit" and "tax-exempt"?

Nonprofits are often called "charity," "independent sector," "NGO," "not for profit," and more.

These "nonprofit" terms are generally is used to describe organizations that work to serve a public purpose, rather than to provide financial benefit to any individual, corporation, or entity. Nonprofits often are mission driven - they are created to serve and fulfill an unmet community need.

One of the most confusing and often mixed-up is "nonprofit" and "tax-exempt." Most charitable organization are generally organized and operated as both nonprofit corporations and tax-exempt entities.
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