Our nonprofit corporation is in real cash trouble and the board is thinking of closing up. Where can we go for information on how to close and sell off the building and land? And what happens to the money?
Since you appear to have some assets even if not enough current cash to continue operations, I recommend that you consult with a knowledgeable attorney about a formal dissolution of the corporation under your state law. The procedures are usually technical, but not overly burdensome.
As to what happens with the net remaining assets, it depends on the type of organization you are. If you are a charitable organization, the net remaining assets must be utilized for charitable purposes. That is a requirement for federal 501(c)(3) organizations and usually a state law requirement as well. Normally a charitable organization going out of business makes a final grant to one or more other charities carrying out similar purposes.
If, however, you are a social club or some other type of non-charitable organization, it may be possible to distribute the assets to members of the organization. If that’s the case, you may find you have a lot of members who haven’t been around for a while. The lawyer should be able to help you out on these issues.