How Do I Dissolve a Nonprofit in DC?

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Steps to Dissolve a Nonprofit Organization

  • Discuss dissolution and authorize the process
  • Review bylaws for dissolution procedures
  • File Articles of Dissolution with details
  • Seek guidance from nonprofit law professionals

Dissolution of a Nonprofit in Maryland

  • Convene a meeting and authorize the dissolution
  • Review bylaws for dissolution procedures
  • File Articles of Dissolution with details
  • Seek guidance from nonprofit law professionals

Assets Handling and Formal Dissolution Process

  • Assets cannot be distributed to members but must transfer to another nonprofit
  • Board or members vote to initiate formal dissolution process
  • Cease transactions, wind down except for debt payment
  • Remaining assets of 501(c)(3)s must transfer to another 501(c)(3)

Closing a 501(c)(3) Nonprofit and IRS Filing

  • File Form 990 with the IRS for declaration of dissolution
  • Organization is dissolved upon filing dissolution papers and final 990 submission

Reasons and Procedures for Nonprofit Closure

  • Completed mission, irrelevant mission, lack of resources, or merge with similar mission lead to closure
  • Fail to file taxes, lose IRS status are involuntary closure causes
  • Steps to close involve filing final forms and addressing employee matters

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