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