The end of life treatment for nonprofits is called "dissolution." It's a legal process that corporations must go through to close down.
There's a state statute that controls what nonprofits have to do before they can go out of business. At the end of the process all board members are released from their duties.
Unfortunately, dissolution is not an easy process. Deciding to dissolve is just the beginning of what can be a long, complex, and emotional process. Even the smallest nonprofit has to go through the same legal process.
Why? It can seem very unfair. But the government gave us a special duty with our income tax exemption. And they want to make sure nobody steal charitable funds on the way out the door.
You may have noticed nothing in nonprofit land comes as easy as we want it to. This is true for closing down a nonprofit, too. Dissolution takes a long time and can be a bit of a journey.
In addition to the statutory process, there are usually contracts and debts that need to be settled. Plus, by law, we have to tell the state and federal government that we're going out of business in a very specific way and comply with the regulations on charities during the winding up of the nonprofit's affairs. These things take time and government paperwork.
The average nonprofit dissolution process takes about 6 months to complete.
There are multiple forms and statutory processes you must go through to do it right - and cut the cords from the board to the nonprofit.
If you just "abandon" the corporation - then your nonprofit's not legally closed and your board members are still potentially liable.
Fortunately you can do the dissolution yourself - with the help of this online course created by an experienced nonprofit attorney for people just like you.
Dissolving can be hard emotionally. The paperwork shouldn't be another source of stress. Now you can get through it with integrity.
The DIY Dissolution is a course for nonprofits in Minnesota who want to do it right. It's for people who want to protect their directors and officers.
This course is designed to guide you step-by-step. It will help you safely end the nonprofit - without wasting your time or money on costly mistakes.