How can a nonprofit organization be dissolved?

Nonprofit organizations in California can be dissolved in a few different ways. The first way is to file a document known as a Certificate of Dissolution with the California Secretary of State. This document must include the name of the nonprofit, a statement declaring intent to dissolve the organization, and the name and address of the person authorized to wind up its affairs. Additionally, the organization must also stop doing any business until the dissolution is finalized by the Secretary of State. The second way to dissolve a nonprofit is to pass a resolution of dissolution approved by the organization’s directors. Once the resolution is approved, the directors must execute and record the resolution with the California Secretary of State. In addition to filing the necessary paperwork with the Secretary of State, there are certain steps that must be taken by the nonprofit organization to dissolve. These steps include transferring assets to another nonprofit organization, notifying creditors and other interested parties, cancelling any contracts and leases, notifying members of the organization, and distributing any remaining assets to the members of the organization. Once all of these steps have been taken and the organization’s dissolution paperwork has been filed with the Secretary of State, the nonprofit will officially be dissolved. It is important to note, however, that even after the nonprofit has been dissolved, it must still continue to file annual information returns and pay any outstanding taxes and fees to the state of California.

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How can a nonprofit organization be dissolved?

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