Jon Sutton

Executive Director, Empowering Students

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What is needed for IRS 501(c)3?

I have:

*Articles of Incorporation from my State
*A staff
*A Board of Directors (being implemented)
*Bylaws (being drafted)

I read somewhere that the IRS requires, upon dissolution, all assets to go to a charitable organization. Is this true? If so, I have to choke up $30 and amend my original Articles.

Thanks to anyone who can help..

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    Oct 31 2011: Hi Jon -
    I wouldn't think you need to amend your articles since it's an already established requirement, and assumed. Unless, of course, you've designated the assets to another source in your original articles. I am not an attorney or authority, however, so it's best to check it out with a tax or corporate attorney.

    Here's a link:

    When a nonprofit corporation dissolves, its assets must be distributed to another tax-exempt group. Since tax-exempt organizations and their assets cannot be owned, they can never be sold. If the directors of a nonprofit decide to disband the organization, they must donate its assets to another nonprofit group. This also means that once property goes into a nonprofit corporation, it cannot later be distributed to a member or director.
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    Oct 31 2011: Yeah, I stupidly designated myself as the recipient organization. Unfortunate!