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Merger, Consolidation & Dissolution


All nonprofits have a life cycle. We understand that the nonprofit organizational life cycle often necessitates a merger, consolidation or dissolution. All the assets of a charitable organization belong to the public – not private shareholders. Because their assets are held in the public trust, nonprofits cannot dissolve like for profit corporations. Nonprofits also cannot transfer more than half their assets (by merger or any other process) without going through special legal procedures. There are special rules that apply to charities because they must report to the State Attorney General’s Office.

Q. Has your nonprofit completed it’s mission?
Q. Do you feel like your organization is failing?
Q. Should your organization go through nonprofit dissolution? Merge? Or Consolidate?
Q. Has the Board of Directors done its due diligence?

The answers to these questions are complicated. Seeking expert advice is important. We help nonprofit leaders assess the best course of action and will facilitate the transition. As attorneys who specialize in nonprofit entities, we can conduct a critical analysis for your organization and give you advice that comes from a deep knowledge of the nonprofit sector.