Untitled Texas Attorney General Opinion ( 1942 )

THE ATJJORNEY GENERAL OF TEXAS Honorable Will Mann Richardson Assistant Secretary of State Austin, Texas Dear Sir: Opinion No. O-4355 Re: Corporations - charitable undertakings Your request for opinion has been received and carefully (~ns.idered by this department. We quote from your request as follows: "We are enclosing an application for a charter for the Penny A Day Club together with an affidavit giving more specific information about the work of the corporation. "It is the opinion of this Department that such a corporation does not come within any of the Subdivisions of Article 13OZ5 even though the words 'charitable undertaking' are used. "While we agree that the purpose may be laudable one, we do not believe it comes within the provisions of Article 1302, and we are, therefore, submitting the matter to your Depart- ment for consideration in order that you may determine whether such a corporation does come within the statutes." The affidavit enclosed among other things given the following in- formation: 'I(c)That the business to be transacted by the corporat.ion will be: (Please outline fully) "The establishment in each community in the United States un- der the sponsorship of the local Junior Chamber of Commerce or local service organization, P chapter of the 'Penny a Day Club'; each club will collect voluntary contributions of a penny a day from school children and others and periodically transmit such funds collected to the corporation, which will act as a central pooling agency. The money pooled, and/or materials of war purchased by such funds, will be turned over to the U. S. Government as a gift of the Club and the Nation's school children, as a contribution towards the war effort. Honorable ifillMann Richardson, page 2 o-4355 "and that no other business of any nature whatsoever ismught to be transacted under said charter other than that above enumerated. " ..... w(f) That the income of the corporation is to.be derived from the following sources: \ "Each local (Penny a Day Club' will periodically transmit the money it has collected to the corporation. "(g) That the income is to be disbursed for the following purposes: "The money itself, or materials of ;~iar purchases by it, will be given to the U. S. Government as a gift of the Nation's children and the club. "That none of said income is to be credited to surplus or inure to the benefit of any member, shareholder or individual. "(h) That the salaries of the officers will be: "Nothing, until the affairs~of the corporation demand a full time executive. The By-laws provide that the total administrative expenses shall not exceed 1% of the total receipts~. "......n While the purpose of the proposed corporation is highly laudable and patriotic it is our opinion that you have correctly answered the question. Very truly yours APPROVED FEB. 5, 1942 GROVER SELLERS ATTORNEY GENERAL OF TEIAS FIRST ASSISTART ATTORNEY GEXERAL BY Wm. J. Fanning Assistant WJF:GG:ml