Dissolving a nonprofit is often more complex than people expect. It’s not a simple, one-step process. Both state and federal requirements need to be met to fully dissolve a nonprofit, and the steps can vary based on the organization’s state of incorporation and federal obligations.
Why It’s Not Just "Flipping a Switch"
When a nonprofit is ready to close its doors, there’s more to it than filing a form. The dissolution process typically includes:
State-level filings: Many states require detailed filings that may include board resolutions, financial disclosures, and public notice of dissolution.
Federal obligations: Nonprofits must notify the IRS of their intent to dissolve and often need to file a final Form 990 to confirm that assets are distributed according to IRS guidelines.
Asset distribution: Any remaining assets generally must be transferred to another nonprofit with a similar mission, per IRS and state laws.
Each of these steps requires careful attention to ensure full compliance, so it’s wise to work with professionals who know the ins and outs of nonprofit dissolution. Our team at Instant Nonprofit can help simplify this lengthy process, guiding you through every step.
Trust the Experts
Navigating both state and federal requirements can be overwhelming, but our experts have the experience to make it easier. Ready to get started? Check out our dissolution service here.