Dissolving a Nonprofit
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When a nonprofit has reached the end of its life cycle, it is time dissolve the organization.
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This is often a difficult decision. Consider consulting with a lawyer regarding the legal aspects of dissolution.
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Steps to dissolving a nonprofit
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​Board determines that the organization needs to close
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Review Bylaws and Articles of Incorporation
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Ratify the decision by a vote of Board
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Draft a plan of dissolution
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Resolve the organization's liabilities
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Distribute the organization's assets
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Review other legal obligations: employees, contracts, constituents and clients, donors and volunteers
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Notice of transfer to NM Attorney General
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File Articles of Dissolution
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Notify other state agencies
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Notify IRS
Resources
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Dissolving a Nonprofit, National Council of Nonprofits
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Termination of an Exempt Organization, Internal Revenue Service
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Strategic Sunsetting, Propel Nonprofits
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Considering Closure by Kate Harris, Kate Harris Group, and Kate Piatt-Eckert, Mission Sustainability Initiative at Forefront, November 8, 2024