How Does a Non Profit Organization Get Dissolution?

Review articles of incorporation to terminate a nonprofit.

A nonprofit organization is an organization that works for the benefit of society without regard to personal profit. It is incorporated and dissolves similar to a general corporation.

Internal

Review the articles of incorporation regarding dissolution and call a meeting of the board of directors or officers. The board must vote on, and approve, a motion to dissolve. If the organization has voting members, any dissolution plan must be approved by a majority.

State

Prepare a final state tax return, if applicable. Contact your state's attorney general or secretary of state for appropriate dissolution paperwork. Some states may require approval from the state judiciary for final dissolution.

Federal

Prepare a final federal tax return, determine your organizations assets and contact the IRS to obtain appropriate termination paperwork. Termination paperwork varies depending on the amount of assets.

References

• Internal Revenue Service: 501(c)(3)
• Internal Revenue Service: Termination of an Exempt Organization
• California Attorney General: General Guide for Dissolving a California Nonprofit Corporation
• Massachusetts Attorney General: Dissolving a Charity

Resources

• IRS: Form 990 EZ
• IRS: Form 990
• IRS: E Postcard Form 990-N
• IRS: State Nonprofit Incorporation Forms and Information