Ownership and Governance of Nonprofit Organizations
A nonprofit corporation has no owners. The assets of a nonprofit organization are held in trust to serve its purpose. Nonprofit boards ensure assets and operations are used properly.
Handling of Assets in Nonprofit Organizations
All assets of a nonprofit must be reinvested into the organization, given to the public, or given to another charity upon dissolution.
Dissolution and Asset Distribution
Nonprofit organizations are required by law to transfer remaining assets to another tax-exempt organization or to the government, ensuring assets are used for exempt purposes.
Who Owns Nonprofit Assets?
No one person or group owns a nonprofit organization. Nonprofit organizations do not issue stock or pay dividends. Revenue earned is reinvested back into the organization.
Responsibilities and Accountability in Nonprofit Organizations
The board of directors is primarily responsible for the accountability of a nonprofit towards the public good. Nonprofit organizations exist for the benefit of the public and are held accountable by the community they serve.