There are
many reasons for wanting to step down from the top chair or even the board its
self. If the organization goes down
with you, there are a few rules you need to follow regarding the distribution
of the NPOs assets.
You
may decide to get the heck out of the hot seat well before the organization’s
mission is complete. Perhaps your
health is deteriorating, or the burden on your personal time is too much. Maybe you never intended to stick around for
long, anyhow.
No
matter why, if you find your self easily irritated by others demands or
inquiries, it might be time to consider a few things:
·
Do you still feel a passion for the
mission?
·
Is the organization set up to get along
without you? (Honestly)
·
Have you accomplished what you
specifically set out to do?
·
Might you have something to contribute
as an employee?
·
Are you just done?
If
you’ve planned for this day, you’ll be less likely to put it off. Be ready for signs that you’ve had your
fill. You’re not stuck at the help of
the NPO forever just because it started out as your idea. There are plenty of opportunities out there
for former corporate presidents, so the next step you take away from the NPO
may be the most exciting yet.
Generally,
once the board moves to dissolve the NPO, it is no longer considered active by
the IRS. One of the final moves might
be to finish reporting any outstanding income or expenses and file final
paperwork with the state, informing them of your non-active status.
You
are not permitted to divvy up the remaining assets of the NPO among the board
members. All money, property and
equipment must be put to a charitable use, as it was intended to be. This can take many forms.
Any
money that is left over can be given to another charitable organization or used
to pay off any debts the NPO owes. When
the money is all allocated, the NPO will finish the process by closing the
account.
Property may be given to another NPO or
can be donated to the community, as in the formation of a park. In either case, the end use of the property
is charitable. Any property that is
sold traded or otherwise disposed of within two years of receiving it as a
donation must be documented to the IRS.
The NPO must file Form
8282, “Donee Information Return (IRS-557, 2005).”
If there is no property owned, but a
space is rented or leased, you may have to pay a fine for breaking the lease,
if the dissolution is sudden. You may use
any remaining money to pay off such fines associated with closing up shop.
All
equipment must be sold for rock bottom prices to constituents, donated to
another organization or become the equipment for a new NPO a member of the
board may form. A garage sale is
appropriate if the prices are well below market value.
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