Honorable Tom L. Beauchamp

Secretary of State Aus tin,Texas

Dear Sir: Attention: Mr. ClaudeA. Williams Opinion Wo. O-1171 Re: Does the purpose alause of "AMIentOrder of Ladies and RMghts of Liberty" comply with the.provisionsof Article 1302,B.C.S.?

Your request for an opinion from this department as to-~whether

the purpose clause of "AnchientOrder of Ladies andKnights of Libertyn'comeswithin the provisionsof Artisle 1302 of our statutes,has been receivedby this department. ~Yourrequest attaches the applicationof these applicants, the purpose clause of which reads as follows:

"The purpose of this ass~ooiation shall.,be

to do patriotic, benevolent, social and educationalwork In perpetuating our Rational Constitution,and of the several States of the Union, In a fraternalmanner. Patriotic (a) It shall be non-political,never preferring one politicalpartymore than any other political party. (b) Itsmembers may affiliate and work with any political party of their choioe,provided such political party has a~'LRGAL"RIGRT

to operate in the State and Nation. Educational (a) Its members shall be taught the necessary meaning and value of our Constitution. (b)Teach the righteousness of our American form of government, the checkingand balancing of power of its several departments. (c) Teach duties of our offioials from President to constable. (a)Teach our children to love the AmerIcan standard and ideals of living as is left to us by our forebears. This association shall be a non-profiting organisation."- .

Honorable Tom L. Beauchamp,Page 2, O-1171

The express purpose of the applicant is educational. This departmenthas in past years issuedmany opinions upon the subject of educational corporation, to-wit: An opinionby the Honorable George E. Christian
on December 18, 1925, found in Reports and Opinions of AWorney General, 1924-26, p. 222; an opinion by Honorable Rice M. Tilly on March 16, 1930; an opinionNo. 310, ai-, p. 766; an opinion by Honorable A. R. Stout, on Deaember 4, 1933, in Opinion BookNo. 352, at p.,395; and a recent opinionby Lloyd Armstrong to the Honorable Tom L. Beauahamp.

Referring again to the opinion of the Honorable George E. Christian, the writer says that "the function exercised by a corporationwill determine its character."

An educational corporationexercises functions that primarily~relate to the giving of instructions In useful and recognized subjects. The fact that educational benefitsmay be derived Incidentalto the functioning of the corporation isnot sufficient to authorize the creation under a statute dealingwith the educational undertaking.

We refer you to thecase of In Re De peyster*s Estate, 104 N.E. 714, which has this to say about an educationalpurpose:

.“A corporationor assooiationorganized exclusively for scientific, literary, library,patriotic, or historical purposes, or for any one of such purposes, Is necessarily to some extent educational In Its nature, and In the results obtaIned from suah organizations. An exclusivelyhistorical society does not gatherbooks, manuscripts, pictures, and antiqquities simply to hoard them. Its purpose is not alone to discover and preserve things and facts ofhistorical value, but to keep and reaord them that theymay be seen, read and studied, that greater knowledgemay be attained from it. The Legislature, in Includingeduoational corporationsand assooiations in the first part of the statute quoted, intended corporations or assoaiationsHonorable Tom L. Reauohamp,Page 3, O-1171

engaged In somethingmore than Inoidental eduoation,which isnecessarily derived from corporationsorganized exclusively for scientific, literary, library,p@trIotic, or historical purposes."

An opinion of thisdepartment~by the Honorable T.W. Taylor,March 26, 1919, said:

*A corporation chartered as an educational undertaking is by force of the law a strictly educational institution."
The opinions of this department on this‘particular subjecthave unanimouslyheld that to be an eduoational corporationa corporationmust have for its primary purpose giving instructions in some recognized field of knowledge.

Educationhas been defined as:

.~ "The system of development and cultiwationof the natural powers; instruotion and training in an institution of learning; the result of such Instruction and training."

We think no additional authorityneaessary to demonstrate the lack of the proposed purpose of your applicant to fall within the intention of the Legislature In authorizing the chartering of an educational tiorporation.

In our opinion such a purpose clause as of the "Anoient Order of Ladies and Knights of Liberty" does not fall within themeaning of educationalpurpose as that term was intended to apply by our Legislature.

MEI:FG/cg

APPROVEDAUG. 19, 1939 Yours very truly

ATTORNEY GRNRRAL OF TEXAS
s/'MorrIsHodges
s/ Gerald C. Mann BY
ATTORRRY GENERAL OF TEXAS Morris Hodges Assistant

Approved Opinion Committee Ry BWB, Chairman