{"id":31566,"date":"2023-09-11T11:32:31","date_gmt":"2023-09-11T15:32:31","guid":{"rendered":"https:\/\/www.grantwatch.com\/grantnews\/?p=31566"},"modified":"2023-09-12T10:39:27","modified_gmt":"2023-09-12T14:39:27","slug":"how-to-dissolve-a-nonprofit-organization","status":"publish","type":"post","link":"https:\/\/www.grantwatch.com\/grantnews\/how-to-dissolve-a-nonprofit-organization\/","title":{"rendered":"How to Dissolve a Nonprofit Organization"},"content":{"rendered":"\n<p>Dissolving a nonprofit organization is a complex process that requires careful planning and execution. Stakeholders must take steps to avoid any legal or financial problems. In this article, <strong><a href=\"https:\/\/www.grantwatch.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">GrantWatch<\/a><\/strong> will explain the process of dissolving a <strong><a href=\"https:\/\/www.grantwatch.com\/grants-for-nonprofits\" target=\"_blank\" rel=\"noreferrer noopener\">nonprofit <\/a><\/strong>organization and share some tips and resources to help you through the process.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 1: Determine the Reason for Dissolution and Write a Plan<\/strong><\/h4>\n\n\n\n<p>Before you start the process of dissolving a nonprofit organization, you want to make sure you are doing it for the proper reason and you are sure you want to go through with it. There are several reasons why an organization might choose to dissolve, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>This organization has achieved its mission and no longer needs to exist.<\/li><li>The organization can no longer operate effectively due to financial or other problems.<\/li><li>An organization&#8217;s board of directors has decided to dissolve the organization.<\/li><\/ul>\n\n\n\n<p>Once you have determined the reason for the dissolution, you can begin to develop a plan for how to proceed. This needs to be a written plan that goes into step-by-step detail of how you plan to proceed next. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 2: Make Sure Everyone Is on Board<\/strong><\/h4>\n\n\n\n<p>After you have written up a formal plan of dissolution for the nonprofit, the next step is to present it to your Board of Directors and ask for a vote. In order to move forward, the board will have to agree that this is the right course of action to take. The exact number of votes you need from the board differs depending on your bylaws. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 3: File the Articles of Dissolution<\/strong><\/h4>\n\n\n\n<p>If your board comes to a consensus about the dissolution, you will then need to file the Articles of Dissolution with the state in which the organization is incorporated. The Articles of Dissolution will include information about the organization, such as its name, address, and date of incorporation. It must also contain a statement sharing the reason for the dissolution.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 4: Notify All Interested Parties<\/strong><\/h4>\n\n\n\n<p>Once the Articles of Dissolution are filed, the organization must notify all interested parties of the dissolution. This includes donors, sponsors, volunteers, and other shareholders. You could do this by sending a letter or email or publishing an official notice in a local newspaper. You also want to make sure to share it on your social media pages and website, so that any new donors or volunteers are aware.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 5: Pay Off All Debts and Liabilities<\/strong><\/h4>\n\n\n\n<p>The next step is to pay off the organization&#8217;s debts and liabilities. This includes any outstanding loans, taxes, or other obligations. The organization&#8217;s assets can be distributed once all debts and liabilities have been paid. The assets will be distributed to the organization&#8217;s members, donors, or another nonprofit organization with a similar mission.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 6: Inform Relevant State Agencies<\/strong><\/h4>\n\n\n\n<p>You will also need to tell the proper state agencies that your nonprofit will be closing its doors. This includes the state agencies that you registered with when you created your nonprofit. Some of these agencies may include the state taxation office or the state department of labor. If you are not sure who to contact, you can reach out to your state Attorney General for guidance.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 7: File the Final 990 Form <\/strong><\/h4>\n\n\n\n<p>The last step in this process includes filing a final 990 Form with the IRS. This form is due within 5 months and 15 days after the last day of the nonprofit&#8217;s fiscal year. However, if you are dissolving your nonprofit before the end of the fiscal year, you can file this last 990 form as soon as you have completed all the requirements from the state. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Extra Tips <\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Start the process early. It can take several months or even years to dissolve a nonprofit organization, so starting the process early is essential.<\/li><li>Get professional help. If you&#8217;re unfamiliar with dissolving a nonprofit organization, hiring an attorney or accountant to help you is a good idea.<\/li><li>Be organized. Keep careful records of all financial transactions and other vital documents. You will need these when it comes to paying off debts and liabilities.<\/li><li>Communicate with your stakeholders. Keep your members, donors, and other stakeholders informed of the dissolution process.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Resources for Dissolving a Nonprofit Organization<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The National Council on Nonprofits website <strong><a href=\"https:\/\/www.councilofnonprofits.org\/running-nonprofit\/governance-leadership\/dissolving-nonprofit-corporation\" target=\"_blank\" rel=\"noreferrer noopener\">has a page<\/a><\/strong> on dissolving a nonprofit organization.<\/li><li>The IRS website <strong><a href=\"https:\/\/www.irs.gov\/charities-non-profits\/closing-a-nonprofit-organization\" target=\"_blank\" rel=\"noreferrer noopener\">has a page<\/a> <\/strong>on closing a nonprofit organization.<\/li><\/ul>\n\n\n\n<p>Dissolving a nonprofit organization is complex but can be done with careful planning and execution. By following the steps outlined in this blog post, you can ensure that dissolving your organization goes smoothly. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>GrantNews Notes <\/strong><\/h4>\n\n\n\n<p><em>With close to&nbsp;<a href=\"https:\/\/www.grantwatch.com\/grant-search.php?search=advanced\"><strong>8,000 grants<\/strong><\/a>&nbsp;currently available,&nbsp;<a href=\"https:\/\/www.grantwatch.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>GrantWatch.com<\/strong><\/a>&nbsp;is the leading grant listing directory. Upgrade to a&nbsp;<strong><a href=\"https:\/\/www.grantwatch.com\/plans.php\" target=\"_blank\" rel=\"noreferrer noopener\">MemberPlus+ subscription<\/a><\/strong>&nbsp;to view the full grant details, including eligibility criteria and application information. For more information, you can also visit the&nbsp;<strong><a href=\"https:\/\/www.grantwatch.com\/about.php\" target=\"_blank\" rel=\"noreferrer noopener\">GrantWatch FAQ<\/a><\/strong>&nbsp;page. To see the great value of all 20 of the top GrantWatch features,&nbsp;<a href=\"https:\/\/www.grantwatch.com\/is-grantwatch-worth-it.php\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>click here<\/strong><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dissolving a nonprofit organization is a complex process that requires careful planning and execution. Stakeholders must take steps to avoid<\/p>\n","protected":false},"author":12,"featured_media":32881,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[147,143],"tags":[],"class_list":["post-31566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-nonprofit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Look at Dissolving a Nonprofit Organization: Step by Step<\/title>\n<meta name=\"description\" content=\"Dissolving a nonprofit is a complex process that requires careful planning. 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There has been a lot to cover over the last three weeks, and we appreciate you joining this journey to gain more knowledge for your nonprofit team. Let's begin with a short recap.\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.grantwatch.com\/grantnews\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-Part-3.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-Part-3.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-Part-3.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-Part-3.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":40153,"url":"https:\/\/www.grantwatch.com\/grantnews\/how-to-write-a-super-set-of-nonprofit-bylaws-part-1\/","url_meta":{"origin":31566,"position":1},"title":"How to Write a Super Set of Nonprofit Bylaws: Part 1","author":"Lianne Hikind","date":"March 11, 2024","format":false,"excerpt":"When it comes to your nonprofit, there's always so much to do! And if you're thinking about starting a new nonprofit, there's even more. That's why, here at GrantWatch, we try to help our readers navigate the process as much as possible. Today, and over the next three weeks, we\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.grantwatch.com\/grantnews\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2024\/03\/How-to-Write-a-Super-Set-of-Nonprofit-Bylaws-1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":7044,"url":"https:\/\/www.grantwatch.com\/grantnews\/what-are-the-advantages-and-disadvantages-of-starting-a-nonprofit-organization\/","url_meta":{"origin":31566,"position":2},"title":"What Are the Advantages and Disadvantages of Starting a Nonprofit Organization?","author":"GrantWatch Staff Writer","date":"June 8, 2022","format":false,"excerpt":"A nonprofit organization is an organization that operates to serve other individuals, groups, or causes. Nonprofits do not operate to generate individual profit or gains. They do not distribute their profits to individuals who control the organization such as its members, officers, directors, or trustees. Although a nonprofit organization can\u2026","rel":"","context":"In &quot;Latest&quot;","block_context":{"text":"Latest","link":"https:\/\/www.grantwatch.com\/grantnews\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Make-a-difference-3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Make-a-difference-3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Make-a-difference-3.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Make-a-difference-3.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":1716,"url":"https:\/\/www.grantwatch.com\/grantnews\/what-are-nonprofit-organizations\/","url_meta":{"origin":31566,"position":3},"title":"Nonprofit Organization? What is that?","author":"grantnews","date":"September 10, 2019","format":false,"excerpt":"There are millions, maybe even billions, of nonprofit organizations in the United States and the world. In your day to day life, you probably stop to consider, \"What organizations are nonprofits and what organizations are for-profits?\". Also, you could ask, \"does it matter the status of an organization?\" The information\u2026","rel":"","context":"In &quot;Archived Posts&quot;","block_context":{"text":"Archived Posts","link":"https:\/\/www.grantwatch.com\/grantnews\/archived-posts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2019\/09\/What-is-a-nonprofit.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2019\/09\/What-is-a-nonprofit.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2019\/09\/What-is-a-nonprofit.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2019\/09\/What-is-a-nonprofit.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2019\/09\/What-is-a-nonprofit.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2019\/09\/What-is-a-nonprofit.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":2719,"url":"https:\/\/www.grantwatch.com\/grantnews\/open-letter-to-nonprofit-ceo\/","url_meta":{"origin":31566,"position":4},"title":"An Open Letter to Nonprofit CEO","author":"Libby Hikind","date":"January 21, 2020","format":false,"excerpt":"Dear Nonprofit President\/CEO, it's a new year and your nonprofit organization is going to need to raise funds to keep operations running. There will be marketing efforts of all kinds, fundraisers, crowdfunding projects, and a multitude of grant applications for specific projects and initiatives. You will probably have one of\u2026","rel":"","context":"In &quot;Latest&quot;","block_context":{"text":"Latest","link":"https:\/\/www.grantwatch.com\/grantnews\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2020\/01\/boss.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2020\/01\/boss.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2020\/01\/boss.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2020\/01\/boss.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":28814,"url":"https:\/\/www.grantwatch.com\/grantnews\/5-ways-to-improve-your-nonprofits-local-brand\/","url_meta":{"origin":31566,"position":5},"title":"5 Ways to Improve Your Nonprofit&#8217;s Local Brand","author":"Mel","date":"June 22, 2023","format":false,"excerpt":"Whether you are a new nonprofit or an older nonprofit still having trouble getting your 'footing' when it comes to increasing your nonprofit's local brand reach, GrantWatch wants to help! For this reason, below is a list provided by GrantWatch of five ways to improve your nonprofit's local brand recognition.\u2026","rel":"","context":"In &quot;Community&quot;","block_context":{"text":"Community","link":"https:\/\/www.grantwatch.com\/grantnews\/community\/"},"img":{"alt_text":"How-to-Make-Your-Nonprofit-Brand-Known-Locally","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2023\/06\/How-to-Make-Your-Nonprofit-Brand-Known-Locally.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2023\/06\/How-to-Make-Your-Nonprofit-Brand-Known-Locally.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2023\/06\/How-to-Make-Your-Nonprofit-Brand-Known-Locally.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2023\/06\/How-to-Make-Your-Nonprofit-Brand-Known-Locally.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/posts\/31566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/comments?post=31566"}],"version-history":[{"count":10,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/posts\/31566\/revisions"}],"predecessor-version":[{"id":32939,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/posts\/31566\/revisions\/32939"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/media\/32881"}],"wp:attachment":[{"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/media?parent=31566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/categories?post=31566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.grantwatch.com\/grantnews\/wp-json\/wp\/v2\/tags?post=31566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}