State Guide to Dissolving a 501(c)(3) Nonprofit Corporation

Nonprofits can seem perpetual. But eventually most close, whether after a few years or a few decades. When it's time to end a nonprofit, you must go through a legal process to officially dissolve it. The process to legally dissolve your nonprofit is usually outlined in your state's nonprofit laws. 

In general, your nonprofit will need to approve the dissolution. Typically, your board of directors or nonprofit members will vote on the dissolution. After the vote is passed, your state might require you to provide notice of your intent to dissolve or obtain approval from a court or the attorney general.

You must then distribute your nonprofit's remaining assets for tax-exempt purposes, so you'll want to make plans with other 501(c)(3) organizations to transfer money or other assets. Some states will want to approve these plans before you officially distribute your assets. Finally, you'll need to submit official paperwork, usually called "Articles of Dissolution," to your state to finish the dissolution process. Remember that you'll also need to file your final state and federal tax returns and close any tax accounts.

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