Nonprofit Law/501C6


Hi - Do you deal with 501c6 orgs as well?
We incorporated as a 501C6 in Arizona. Now we are thinking of dissolving & want to know how.
Also we would like to donate our funds to a related org that is a 501c3.
Please help!

I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However, I will give you some direction. -- where the IRS gives general information about the 501(c)(6) classification "Business Leagues".  There we see "A provision in an organizationís charter providing for the distribution of assets to its members in the event of dissolution will not in itself preclude exemption. See Crooks v. Kansas City Hay Dealersí Association, 37 F.2d 83 (8th Cir. 1929)."

Therefore, you would need to look to your Articles of Incorporation and Bylaws to see if there are any requirements as to dissolution.  If not, you may certainly donate funds to a related or unrelated 501(c)(3) organization.

Arizona Code Chapters 24 - 42 has the State Law for Nonprofit
Corporations and it is available at: and specifically go down to Chapter 37 which is dealing with dissolutions. But you would usually not need to read those sections if you follow the forms provided by the State. The Arizona Secretary of State's Home page is at: and the forms and instructions for Articles of Dissolution       Instructions are available at

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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