What is an unincorporated nonprofit association?
Article 1396-70.01, et.seq., the Texas Uniform Unincorporated Nonprofit Association Act [TUUNAA], defines an unincorporated nonprofit association as an unincorporated organization consisting of three or more members joined by mutual consent for a common, nonprofit purpose. All unincorporated nonprofit associations, whether or not the entities are tax exempt, are subject to the provisions of the TUUNAA. The Act addresses a limited number of major issues relating to nonprofit associations; namely, the authority of the nonprofit association to acquire, hold and transfer property in its own name; the authority to sue and be sued as a separate legal entity; and the contract and tort liability of an association’s officers and its members. If you need further information regarding these provisions or how they might affect your association, you should contact your own legal counsel.
An unincorporated nonprofit association is defined as an organization consisting of members joined by mutual consent for a common, nonprofit purpose. Historically, people have formed associations in order to share interests or further common goals. Small religious organizations, for example, may not feel they have the financial or human resources to obtain and maintain corporate status. Just because an association takes a less formal approach to its formation does not mean that it should grow haphazardly. Members of unincorporated associations should be aware that without some formal planning, associations risk running afoul of the law, which is the most important shortcoming of this form of self-government. Historically, an unincorporated association was not liable for actions of its members because it was not a legal entity subject to suit. However, the trend in the law is to allow even unincorporated associations to sue and be sued. Furthermore, individual members may be liable for
An unincorporated nonprofit association, or UNA, is the nonprofit version of a limited liability company. It is defined as two or more people who join together by mutual consent to pursue a common nonprofit purpose. The UNA is considered a separate legal entity from its members for tax and debt purposes. No authority or management organization is required because it is a nonprofit organization.
The Texas Uniform Unincorporated Nonprofit Association Act (TUUNAA), as codified in the Texas Business Organizations Code, defines an unincorporated nonprofit association as an unincorporated organization consisting of three or more members joined by mutual consent for a common nonprofit purpose. All unincorporated nonprofit associations, whether or not the entities are tax exempt, are subject to TUUNAA. For more information, see Form 208 (Word 31kb , PDF 21kb ).
