Legal Question in Business Law in Texas

Re: nonprofits

In order for contributions to be tax-deductible, you need to be recognized by the I.R.S. as a 501(c)(3) non-profit entity. Otherwise you are considered to be a profit-making entity.

The fact that you are organized as a non-profit Texas corporation means that you may avoid paying Texas franchise taxes.

Anyone can solicit contributions, just so long as the solicitation isn't fraudulent. You could have a website called I.M.Broke.Com that says, "Please send money. All contributions gratefully accepted. Thank you." The money you receive has to be declared as income.