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Should we assume the status of a partnering organization that is dissolving?

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Should we assume the status of a partnering organization that is dissolving?

A friend and I were asked last year to open and run a food pantry by a lady who has a food pantry in another county. We have been running it under her and her 501(c)(3). She has told us she wants to close her food pantry and we must close ours. How do we continue running our pantry and get a 501(c)(3) status of our own? We would now like to continue under the name of her organization.

You might ask if you can take over her exempt entity and continue the operation with her entity's name and just your location. Be sure you do the proper "due diligence" if you consider taking over her organization (See Ready Reference Page: "Mergers and Affiliations Require 'Due Diligence.") Alternatively, you might just acquire the name of her entity. You may want to start fresh and form your own entity, obtain exemption, and continue business on your own. 

Sunday, April 6, 2008

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