Liquidating assets for charity
If your charity has members other than the trustees, your governing document may say that you have to call a meeting of the members to agree to wind the charity up.You can use the commission’s online charity closure form unless your charity: If you can’t use the online form or your governing document says you need the commission’s permission to wind up, contact the commission.This will include checking if you have any: You will then need to follow the right closure procedure for your charity; this depends on its structure.First, check if your charity’s governing document contains a ‘dissolution’ or ‘winding up’ section. Most governing documents allow you to wind up your charity.Consider if you can make effective use of the charity’s remaining funds by transferring them to another charity with compatible purposes.Alternatively, you might find a community foundation or some other charity may offer to continue to run your trust in line with its objects.You can tell the commission that you have wound it up by completing the closure form.You and the trustees must arrange for the CIO members to make a dissolution resolution.
If you do decide to close your charity, you’ll need to clear all its debts and liabilities before you spend its remaining assets on your charity’s purposes.In Arizona, the legal steps to dissolve the Corporation are as follows: Business Steps.Once the Board has made a final decision to dissolve the nonprofit corporation and hired counsel to handle the legal steps outlined above, the Board’s focus should shift to settling the Corporations debts and liabilities and distributing the Corporation’s remaining assets.You must make sure your charity is removed from the Companies House register before it can be removed from the register of charities.A charitable company has an automatic right to expend all of its assets on its purposes.
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You can’t use the online closure form to tell the commission about the dissolution of your CIO. You need to put ‘CIO dissolution’ in the subject and confirm: You also need to give details of how any property vested in, or held in trust for, the CIO has been or is to be applied in accordance with the directions in its constitution.