The Nonprofit FAQ: Dissolution

Select an FAQ   (6):

'Milestones' in the Life of a Nonprofit The IRS and the UK Charities Commission have brief guides to starting, operating, and closing down a community-service organization or charity.

Can a nonprofit declare bankruptcy? Yes. This item includes references to several discussions of the question from a variety of sources.

Can we re-incorporate in another state? Although the organization may feel it is just a formality when the state of incorporation is changed, in fact one organization has gone out of existence and a new one has been formed. New standing with the IRS is necessary.

Do Foundations Ever Go Out of Existence? Some are set up that way by the founders. The Markey Foundation produced a handbook on the process of dissolution - From Foundation News and Commentary.

Resources for Understanding Nonprofit Mergers Here's a link to a page with references on this topic.

What happens when nonprofits go out of business? A plan of dissolution is supposed to be filed. Often that doesn't happen. Assets must be passed on to another organization with a similar purpose.