Charity Asset Distribution on Dissolution: Who Decides?

When a 501(c)(3) charitable organization winds up its affairs, a key issue is the distribution of assets on the dissolution. Under federal tax law, a 501(c)(3)’s organizing documents must specify that its assets will be “irrevocably dedicated to charitable purposes.” The laws of most - if not all - U.S. states include a similar limitation. The critical task of the disposition of assets must meet the standards of the Read More

More Nonprofit Woes from State Budget Troubles

We’ve reported before on nonprofits being caught in the financial crossfire from state (and local) budget impasses and cutbacks. In “Local Governments Eager to Snag Revenue from Nonprofits,” we alerted you to the alarming trend of local governments trying to scoop up any revenue possible from the nonprofits in their communities. A favorite method, we reported, is the PILOT; that is, “payments in lieu of taxes.” Read More