If our 501c non-profit club is disbanded, can a non 501c organization receive our monies and assets?
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If our 501c non-profit club is disbanded, can a non 501c organization receive our monies and assets?
We are rewriting our by-laws and are questioning who can receive our assets.
Asked on February 20, 2014 under Business Law, Ohio
Answers:
Anne Brady / Law Office of Anne Brady
Answered 10 years ago | Contributor
Generally, when a 501(c)(3) is formed, it has to promise that if/when it is disbanded, it will transfer its assets to another 501(c)(3) with a similar purpose. You should have done this when your organization was formed. To change your bylaws to state differently now could be cause for the IRS to revoke your non-profit status; don't do it.
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