Steps to Close a Nonprofit Organization
The process is similar to dissolving other corporations. By taking steps, you can make the winding down process go smoothly. One reason to dissolve is that a nonprofit has fulfilled its mission. It could be challenges that make it unsustainable. Or other organizations fulfill community needs. You could be merging and dissolving as part of the process.
Dissolution of a Nonprofit Organization
The IRS and state agencies have always cared what the nonprofit does. Leaders must make a plan of dissolution covering liabilities and assets. Articles are filed with the Secretary of State. The dissolution is complete upon filing or on the date stated.
Obligations and Procedures for Dissolution
Shutting down involves formal and informal stages. Take care of employees and clients. Tell donors and partners. Pay debts before closing. Document your work. Regardless of the cause, dissolving a 501c3 is significant. The Board must vote. In cases with no members, the Board can dissolve on its own motion. That only begins the process.