Working with Nonprofits & NGOs from Start-Up to Build-Up - Company Message
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Attorneys: Links for Pro-Bono Nonprofit Business Attorneys
Types of Nonprofits by Definition
Nonprofit Internships - Igdealist.org
What are NGOs? - Are they Nonprofits?
KBLX 102.9 Nonprofit Weekend Tip! What are 501c4 Organizations?

Categories

Interviews
KBLX Exhibit Discounts
KBLX Nonprofit Weekend Tips
News - General News Worthy Nonprofit Info
NEWS - Nonprofits Execs Possibly Facing Jail Time
Nonprofit Articles
Nonprofit Audit Info
Nonprofit Budget Templates
Nonprofit Business Attorneys
Nonprofit Compliance
Nonprofit Compliance Laws
Nonprofit Defined
Nonprofit Education
Nonprofit Emergency Funding
Nonprofit ERISA - 403(b) retirement plans
Nonprofit financial education
Nonprofit Financial Report Info
Nonprofit Fiscal Agent/Sponsorship
Nonprofit Health Care Compliance
Nonprofit Internships
Nonprofit Published Articles
Nonprofit Reserves - Cash
Nonprofit Start-Up
Nonprofit Surveys
powered by

My Blog

KBLX 102.9 FM Radio - How to Dissolve Your Nonprofit Corporation?


You cannot just walk away from your nonprofit –To close your Nonprofit correctly you MUST dissolve the corporation

How do you dissolve your Nonprofit?

Your Board must vote on a resolution to wind up and dissolve the corporation

You must file your final State & Federal tax returns

You must obtain the Attorney Generals approval to dispose of any assets

Finally you must submit a Final Notice of Submission of Closure to the Secretary of State and the Attorney General’s offices      


Researched information from IRS & State of California websites (verbatim):  

1.      VOTE BY NONPROFIT BOARD OR MAJORITY OF CORPORATION’S MEMBERSHIP T O DISSOLVE AND PREPARE CERTIFICATE OF ELECTION TO WIND UP AND DISSOLVE (IF APPLICABLE) AND/OR A CERTIFICATE OF DISSOLUTION    


2.      FILE FINAL STATE TAX RETURN AND VERIFY CURRENT STATUS WITH FRANCHISE TAX BOARD      However, dissolution documents cannot be filed on behalf of a suspended corporation.  

3.      OBTAIN DISSOLUTION WAIVER FROM THE ATTORNEY GENERAL ’S OFFICE BEFORE DISPOSING OF ANY REMAINING ASSETS    

A.    LETTER SIGNED BY A DIRECTOR OF THE CORPORATION, OR ITS ATTORNEY, DETAILING ALL INDIVIDUALS OR GROUPS WHO WILL BE RECEIVING THE CORPORATION’S REMAINING ASSETS.         

If no assets remain for distribution, that information must be provided in a letter. For each intended recipient, the letter must provide: 

♦ Recipient’s Full Legal Name, Address, Telephone Number; Corporate Number; and FEIN, if any 

♦ Itemized listing of assets to be distributed, by type and value

♦ Proposed date of distribution

♦ Any restrictions on the use of the assets to be distributed ♦ Recipient’s Articles of Incorporation or trust instrument  

B.    SIGNED COPY OF CERTIFICATE OF ELECTION TO WIND-UP AND DISSOLVE and/or SIGNED CERTIFICATE OF DISSOLUTION PREPARED FOR SUBMISSION TO THE SECRETARY OF STATE.

C.   COPY OF THE CORPORATION’S IRS FORM 990, FORM 990-EZ or FORM 990-PF FOR THE LAST THREE (3) ACCOUNTING PERIODS.         
If the corporation does not file one of these informational returns, it must submit financial statements showing receipts and disbursements, and a balance sheet, for the three (3) most current accounting periods, as well as financial statements for the incomplete accounting period.  

ASSETS MUST BE DISTRIBUTED IN ACCORDANCE WITH ARTICLES OF INCORPORATION AND BY-LAWS OF DISSOLVING CORPORATION, AND ARE SUBJECT TO ANY TRUST UNDER WHICH THE ASSETS ARE HELD. THE INTENDED RECIPIENT OF ASSETS MUST:

•  HAVE THE SAME IRS EXEMPTION AS STATED IN THE DISSOLUTION CLAUSE OF THE DISSOLVING CORPORATION’S ARTICLES OF INCORPORATION;  

•  BE CURRENT IN REPORTING OBLIGATIONS TO THE ATTORNEY GENERAL’S REGISTRY OF CHARITABLE TRUSTS, IF REQUIRED TO REGISTER AND REPORT.
 

D.     ENDORSED-FILED COPY OF CORPORATION’S ARTICLES OF INCORPORATION, INCLUDING ANY AMENDMENTS.    


4.      SUBMIT FINAL NOTICE OF SUBMISSION T O THE SECRETARY OF STATE’S OFFICE

5.      SUBMIT FINAL NOTICE OF SUBMISSION T O THE ATTORNEY GENERAL’S OFFICE     Mail the final dissolution packet to the Attorney General’s Office, to the attention of: the Registry of Charitable Trusts. The packet should contain:

(a) a copy of the Certificate of Dissolution endorsed (stamped) by the Secretary of State; and
(b) the final financial report for the corporation showing that all assets were distributed properly, resulting in a zero balance.  

ASSETS MUST BE DISTRIBUTED IN ACCORDANCE WITH ARTICLES OF INCORPORATION AND BY-LAWS OF DISSOLVING CORPORATION, AND ARE SUBJECT TO ANY TRUST UNDER WHICH THE ASSETS ARE HELD. THE INTENDED RECIPIENT OF ASSETS MUST:
•           HAVE THE SAME IRS EXEMPTION AS STATED IN THE DISSOLUTION CLAUSE OF THE DISSOLVING CORPORATION’S ARTICLES OF INCORPORATION;  
•                     BE CURRENT IN REPORTING OBLIGATIONS TO THE ATTORNEY GENERAL’S REGISTRY OF CHARITABLE TRUSTS, IF REQUIRED TO REGISTER AND REPORT.  

1 Comment to KBLX 102.9 FM Radio - How to Dissolve Your Nonprofit Corporation?:

Comments RSS
prada replica on Tuesday, July 08, 2014 2:55 AM
Slipping at home side should contribute trend and additionally breathing space for the sites, where you can see you'll find that there's at home.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment