Liquidating assets for charity
Assets may be transferred in-kind to avoid the time and expense of liquidating assets if the grantee nonprofit is willing to accept them. Although many nonprofit corporations consider dissolution a dirty word and a dreaded process, if it becomes necessary and the steps outlined above are followed, the nonprofit can dissolve gracefully and transfer its remaining assets to another nonprofit with similar goals, turning the dissolution into a benefit that will help further its original mission.
Alternatively, your non-company charity may be able to transfer land or property it owns to another charity.
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 must make sure your charity is removed from the Companies House register before it can be removed from the register of charities.