There are 5 methods for dissolving nonprofit organizations: voluntary dissolution, judicial dissolution and liquidation, chapter 7 bankruptcy liquidation, receivership, and assignment for the benefit of creditors (often called ABC). During your consultation with a member of our legal team, we can point you to the best method for dissolving your nonprofit.
Navigating the realities of nonprofit dissolution
Closing your nonprofit is a difficult decision, but in some cases it is the best choice to preserve your organization’s mission and ensure you leave a positive legacy. There are multiple ways to close your nonprofit effectively. While the process can be an emotional one, at Charitable Allies, our nonprofit attorneys are here to help you move through the process with care and intentionality.
How do you know when it’s time to close?
Nonprofit dissolution is never the first step an organization needs to take when navigating unexpected hardship. It’s a last resort when restructuring or reorganizing aren’t viable options.
There are 3 signs that it’s time to consider closing your nonprofit.
Moving forward with a nonprofit dissolution
When you’ve made the difficult decision to close your nonprofit, the last thing you want is to be alone in navigating the legal paperwork. Our nonprofit attorneys have the knowledge and compassion to help you assess your organization’s unique situation. We can guide you through the best method for closing your nonprofit to preserve your mission and leave a positive impact.
A Straightforward Process
Getting professional legal guidance makes the closing process easier to navigate and provides the support you need.
A Nonprofit’s Perspective
We’re a nonprofit that serves nonprofits. We understand the heart that goes into your mission and the desire to leave a positive impact.
Comprehensive Legal Service
We service nonprofits at every stage of development, including start-ups, mergers, and nonprofit dissolution.
Frequently Asked Questions
Yes! Our nonprofit attorneys have helped nonprofits navigate the bankruptcy process. Schedule a consultation with a member of our legal team to get started.
The process for nonprofit dissolution varies based on your specific jurisdiction and situation. That’s why we recommend consulting with an attorney to get tailored advice. In general, its assets need to be distributed to the appropriate stakeholders, its debts need to be paid, and articles of dissolution are filed with the secretary of state.