Articles of Dissolution Nonprofit is a crucial legal document required when a nonprofit organization decides to cease operations. This document must be filed with the appropriate state authority and demonstrates compliance with both state and federal requirements for nonprofit dissolution. It includes information about debt settlement, asset distribution to qualified organizations, tax clearance, and proper authorization for dissolution. The document is necessary to protect board members from future liability and ensure proper closure of the organization's affairs. It must adhere to specific state requirements while maintaining compliance with IRS regulations for 501(c)(3) organizations.
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1. Article 1: Identity: Name and identification details of the nonprofit corporation
2. Article 2: Authorization: Statement of board approval and/or member vote authorizing dissolution
3. Article 3: Debts and Liabilities: Statement regarding payment or provision for payment of all debts
4. Article 4: Asset Distribution: Plan for distribution of remaining assets to qualified organizations
5. Article 5: Tax Status: Statement regarding tax clearance and final returns
1. Member Approval: Required when nonprofit has voting members who need to approve the dissolution
2. Restricted Assets: Required when organization holds restricted funds or endowments that need special handling
3. Foreign Qualifications: Required when organization is operating in multiple states and needs to address dissolution in each jurisdiction
1. Schedule A: Asset Distribution Plan: Detailed list of assets and receiving organizations
2. Schedule B: Board Resolution: Copy of board resolution approving dissolution
3. Schedule C: Member Vote: Documentation of member approval if required
4. Schedule D: Tax Clearance: State tax clearance certificates
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