Texas Business Organizations Code - Section 2.107. Standard Tax Provisions For Certain Charitable Nonprofit Corporations; Power To Exclude
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§ 2.107. STANDARD TAX PROVISIONS FOR CERTAIN CHARITABLE
NONPROFIT CORPORATIONS; POWER TO EXCLUDE. (a) Notwithstanding
any conflicting provision of this chapter, Chapter 3, or the
certificate of formation and except as provided by Subsection (b),
the certificate of formation of each corporation that is a private
foundation as defined by Section 509, Internal Revenue Code, is
considered to contain the following provisions: "The corporation
shall make distributions at the time and in the manner as not to
subject it to tax under Section 4942 of the Internal Revenue Code of
1986; the corporation shall not engage in any act of self-dealing
which would be subject to tax under Section 4941 of the Code; the
corporation shall not retain any excess business holdings which
would subject it to tax under Section 4943 of the Code; the
corporation shall not make any investments which would subject it
to tax under Section 4944 of the Code; and the corporation shall
not make any taxable expenditures which would subject it to tax
under Section 4945 of the Code."
(b) A nonprofit corporation described by Subsection (a) may
amend the certificate of formation of the corporation to expressly
exclude the application of Subsection (a).
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 2.012 2.101 2.102 2.103 2.104 2.105 2.106 2.107 2.108 2.109 2.110 2.111 2.112 2.113 2.114
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Last modified: August 10, 2007
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