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Nonprofit Law/Dissolution of booster club


QUESTION: Hello. We are in the process of dissolving the booster club at our local high school. Not sure what our options are as far as all of the concessions equipment and what can be done with it. I know we can donate it a 501c3. Can we sell the equipment and donate the funds back to the school or another organization? Thank You your site has been a tremendous help!

ANSWER: You are welcome.

First I would need to know if your group is incorporated under the Colorado Nonprofit Corporation Act.  If so. the Colorado Revised Nonprofit Act is available through
If you want to read the relevant sections. Click on the left folder "Colorado Revised Statutes"
Then, after that opens, click on the lower folder icon "Colorado Revised Statutes" and that will cascade open the different titles. You would then click on "Title 7 Corporations" Then on "Corporations and Associations". Then on "Corporations". Then on "ARTICLE 50.RELIGIOUS, EDUCATIONAL, AND BENEVOLENT SOCIETIES". Then on the last link "7-50-114. Dissolution" which does not give much in detail but indicates that the filing needs to be done with the State.

You would see the form at

You would need to look at your Articles of Incorporation and Bylaws to see if there is any provision there as to dissolution and assets.

If your group is not so incorporated or was not established as a 501(c)(3) organization, let me know and I will reply further.  

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.    

---------- FOLLOW-UP ----------

QUESTION: Thank You for that reference to the Colorado Revised Non profit act. Very helpful.
Our booster club did not have 1 501c3 or articles of incorporation that we are aware of. It does have a business license and taxes are paid as such quarterly. Thank You

Well, as your organization was not incorporated or otherwise set-up as a 501(c)(3) organization it would not need to comply with any state or federal laws as to the assets upon dissolution.  You would only need to look to your internal documents (like articles of association) and agreements, for example with the school board.

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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