January 10, 1974
The Honorable Anna Beth Merten Opinion No. H- 205
County Auditor
Wailer County Re: Disposition of funds
P. 0. Box 966 raised by a non-profit
Hempstead, Texas 77445 corporation in connection
with county centennial
Dear Ms. Merten: celebration
Your request for our opinion involves funds derived from the sale of
a book on the history of Walter County and a Wailer County Centennial
Cookbook. You advise that the Wailer County Historical Survey Committee,
created in accordance with Article 6145.1, V. T. C. S., has been inactive,
in other than civic duties, until this year. Since 1973 was the Wailer County
Centennial Year, the Committee decided that it was an opportune time to
write and have published the history of Wailer County and also a Walter
County Centennial Cookbook.
Wailer County Historical Society, Inc., a non-profit corporation,
was formed and it financed the history book and the cookbook for the His-
torical Survey Committee. After selling the books and paying expenses, a
profit remained.
The question you have asked is: “Should the profit from the sale of the
above mentioned books be deposited with the Wailer County Treasurer to be
disbursed by her and audited by the County Auditor, as other county funds? ”
The Texas Non-Profit Corporation Act, Article 1396-1.01, et s.eq. ,
V. T. C. S., authorizes the organization of such a corporation for any lawful
purpose. (Art. 1396-Z. 01). Among its general powers, it is expressly autho-
rized “To make donations for the public welfare or for charitable, scientific,
or educational purposes. . . . ” [Art. 1396-2.02, A(l3)]. It is not prohibited
from realizing a profit but may not pay any dividend t.o its members, directors
p. 964
The Honorable Anna Beth Merten, page 2 (H-205)
or officers. (Art. 1396-Z. 24).
It is our opinion, therefore, that the funds of the Wailer County
Historical Society, Inc., may be used or disposed of by it for any purpose
not forbidden by the Non-Profit Corporation Act. The corporation is
not subject to the supervision of the County Auditor’s office and may
deposit its funds in any proper depository or none at all.
SUMMARY
Neither the county treasurer nor the county
auditor has any responsibility for funds of a legally
organized non-profit corporation.
Very truly yours,
JOHN L. HILL
Attorney General of Texas
DAVID M. KENDALL, Chairman
Opinion Committee
p. 965