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QUESTION: A relative of mine purchased a home and titled it under a nonprofit organization he established (Articles of Incorporation completed only).  He passed away last year and now I want to dissolve the nonprofit but start another nonprofit.  What happens to the house when the nonprofit is dissolved?

ANSWER: If your relative wrote the articles of incorporation to comply with IRS regulations for 501(c)(3) organization then there would be a clause like:
--- Start of Excerpt ---
 Upon the dissolution or winding up of the corporation, its
assets remaining after payment, or provision for payment, of all
debts and liabilities of this corporation shall be distributed to
a nonprofit fund, foundation or corporation which is organized and
operated exclusively for charitable purposes and which has
established its tax exempt status under Section 501(c)(3) of the
Internal Revenue Code.
--- End of Excerpt ---

See http://goo.gl/4w0TgU which the Alabama Nonprofit Corporation
code as of 2012 and, as for the detaiols of the procedure in dissolution go down to Article 7 "Dissolution".

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

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: There is no such clause and the organization and home is in Milwaukee, WI.  Can you send me the link for dissolution
In Wisconsin?  Will the property be considered a probate asset to be passed down to heirs or can I request to transfer
Property to the nonprofit that I am starting in his name?

Answer
See Chapter 181 of Wisconsin Statutes "Nonstock Corporations" which
is found at:
http://bit.ly/owJe6 and go down to start at 181.1301 as to distributions and dissolution.
http://goo.gl/9rxOMd

Assets of a nonstock corporation are not assets of an individuals estate but must be addressed by the Nonstock Corporation code. Before I could answer your question as to whether the assets (real property) could go to a new nonprofit that you are forming, I would need to read the articles of incorporation and bylaws of the dissolving corporation.
I have in my profile in my forum at http://bit.ly/NonprofitLaw the free service that I offer is only for general questions directly related to IRS exempt purpose issues of 501(c)(3) organizations.

Your issues are beyond that and I would need to spend a substantial amount of time.  If you want to hire me, send me an email directly to my email address below and I will quote you my fees.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

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

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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 Harvey108@hotmail.com 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 "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

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.

Education/Credentials

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

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


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