A director must be a natural person; there are no residency requirements for directors. Set. The step of setting up a nonprofit in Texas will be creating your nonprofit bylaws and conflict of interest policy.A. Board member need not be a resident of the State of Texas. 3.2. (a) The first Board of Directors of the Corporation shall consist of those persons named in the Certificate of Formation. A director must be a natural person; there are no residency requirements for directors. The first step you should take is to consult your nonprofit bylaws. Your bylaws should contain your organization's procedure for adding new board members. Follow the rules for your 501(c)(3) organization with this annual checklist. Keep up with IRS reports, board meetings, other nonprofit In this guide, we'll show you how to share your organization's impact with an engaging nonprofit annual report template and explore best practices.