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50 OVERVIEW OF THE NONPROFIT SECTOR eH.l General. Code § 2.2-507.1 does not transform every non stock charitable corporation in Virginia, or that does business in Virginia, into a trust that is subject to the Uniform Trust Code.* * * In summary, we hold that Code § 2.2-507.1 does not impose any duties upon a nonstock charitable corporation. We also hold that the College is not subject to the Uniform Trust Code. * * * Affirmed. NOTE The Texas nonprofit corporate statute addresses the question of whether its state statute governing administration of property held for charitable purposes causes a director of a charitable corporation to assume the duties of a trustee with respect to corporate property. Tex. Bus. Organ. Code § 22.223 states that a director of a nonprofit corporation is not considered to have the duties of a trustee of a trust with respect to the corporation or with respect to property held or administered by the corporation, including property subject to restrictions imposed by the donor or transferor of the property.13 PROBLEM John and Mary Barry want to operate a day care center. They approach you for your opinion as to the structure they should choose for the center. They ask whether they should incorporate. In addition, they ask whether the center should be for-profit or nonprofit. Profits from the center will be their sole source of income. They also ask you for your advice as to how profits can be distributed to them. III. NONGOVERNMENTAL ORGANIZATION (NGO) Some nonprofit organizations have sought status as a nongovernmental organization (NGO) in what has been termed the global third sector. The nongovernmental organization, the NGO, is a nonprofit organization that is concerned with the social development of communities 14 and one that plays a direct role in the development of international law. Examples of NGOs include Greenpeace, Amnesty International, Oxford Committee 13. Interestingly, in 2009, the Texas legislature enacted a new provision to the Texas Property Code, § 113.029, which prohibits a "charitable trust," defined to include a charitable corporation, from changing the location in which the entity's administration takes place from a location in Texas to a location outside the state unless the proposal location is submitted for approval by the Texas Attorney General. The location cannot be changed unless a district court or a statutory probate court authorizes the relocation and the relocation will not impair the entity's charitable purpose. Section 113.029 permits the Texas Attorney General to bring an action to enforce the section's provisions and provides for removal of a trustee or director who fails to comply with the section. 14. See Chiara Giorgetti, "The Role of Nongovernmental Organizations in the Climate Change Negotiations," 9 Colo. J. In1'l Envt!. L. & Pol'y. 115, 116. The author noted that NGOs have become important actors in international and national politics. Id. at 136.
SEC. IV FOREIGN NONPROFIT ORGANIZATIONS 51 ------------------------ for Famine Relief (Oxfam), which is a British organization whose objectives are to "relieve poverty, distress and suffering in any part of the world, and to educate the public concerning the nature, causes and effects of poverty," 15 the International Red Cross, the International Campaign to Ban Landmines, and the International Senior Lawyers Project, which provides a vehicle by which skilled and experienced senior lawyers can provide volunteer legal services to the world community. These organizations seek enforcement of international law and, in this context, monitor State compliance with international laws in the areas of environmental protection, international human rights, and humanitarian law}6 As one author concluded, the principle function of NGOs is their participation in the international decision making process. 17 They seek to find solutions for global problems and to develop and strengthen international law. One of the major contributions of NGOs is the communicating of information to governments, including the United Nations. 1s Although NGOs in their present form came into existence after World War II because of their activities following the creation of the United Nations,19 the propagation and refinement of NGOs is a more recent phenomenon. IV. FOREIGN NONPROFIT ORGANIZATIONS AND PHILANTHROPY ABROAD Two preeminent authors on the role of the nonprofit sector in the global community summarized voluntary sector activities currently existing outside the United States in a book they edited on the subject. 20 They concluded that the distinction between governmental and nongovernmental institutions is often blurred and that the nonprofit sector is generally more independent in common law countries than civil law States. They noted that in many Catholic countries, the voluntary sector has evolved from the church whereas nonprofit groups in socialist countries, if they exist, are controlled by the government. They pointed out that NGOs provide services to impoverished groups and support projects in developing countries. The authors noted that because state subsidies may be limited in these countries and because corporations and individuals may have little disposable income, the nonprofit organization in developing countries may have few resources. 15. See OXFAM, http://www.who.orgprogrammeslina ngo ngoI47.htm. 16. Karsten Nowrot, "Legal Consequences of Globalization: The Status of Non-Governmental Organizations under International Law," 6 Ind. J. Global Leg. Stud. J. 579, 580. 17. Id. at 590. 18. See John King Gamble and Charlotte Ku, "International Law-New Actors and New Technologies: Center Stage for NGOs· l . ·' 31 L. & Pol. in Int'1. Bus. 221, 320. 19. See Karsten Nowrot, cited in note 14. p. 581. 20. Virginia Hodgkinson and Kathleen McCarty. "The Voluntary Sector in International Perspective: an Overview," Chapter 1 in Kathlen McCarthy, Virginia Hodgkinson, and Russy Sumariwalla, The Nonprofit Sector in the Global Community, Jossey-Bass Publishers, 1992.
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