An unincorporated nonprofit association is an unincorporated organization, other than one created by a trust, consisting of three or more members joined by mutual consent for a common, nonprofit purpose. Under Texas law, an unincorporated nonprofit association is treated for certain issues as a separate legal entity as opposed to an aggregate of individuals. The association is authorized in its own name to acquire, hold, encumber or transfer an estate or interest in real or personal property. It is a separate legal entity for purposes of determining the liability of the association in tort and contract. Nonprofit associations must maintain correct and complete books and records of account and make those records available to its members. The Texas Attorney General is given the authority to examine those books and records and investigate the association to determine if a violation of any law of this state has occurred. Two filings may be made by nonprofit associations. A Statement of Authority as to Real Property and an Appointment of an Agent authorized to receive service of process on behalf of the association.
The association may execute and record a Statement of Authority as to Real Property to transfer an estate or interest in real property in the name of the nonprofit association. The statement must be recorded in the county clerk’s office in the county in which a transfer of the real property would be recorded. The statement of authority may be amended or canceled. Unless canceled earlier, the statement expires on the fifth anniversary of the date of this recording of the original statement to any amendment to that statement.
The association may also appoint a person to receive a service of process on its behalf. The Appointment of Agent to Receive Service of Process is filed with the Texas Secretary of State. This filing is not the equivalent of filing a certificate of formation; it is a method for a nonprofit association to facilitate service of process and to ensure that the association receives notice of any lawsuit brought against the association. The Texas Secretary of State has a form 706 used for this purpose.