Closing Your New York Nonprofit

The nonprofit landscape is tougher than ever. Funding is harder to secure, donor fatigue is real, and operational costs keep climbing. For many organizations, the pandemic shifted everything: some missions were accomplished, others became unsustainable, and some simply can't continue in this environment. If you're facing the reality that closing might be the right decision, you're not alone. It's a difficult choice, but sometimes it's the responsible one.

The Two Steps

Step 1: Get Your Plan Approved

Create a dissolution plan

Your board needs to vote on a plan for closing. If you have voting members, they need to approve it too.

Where your money can go

Here's the key rule: your assets must go to other tax-exempt charities doing similar work. Animal rescue money goes to animal welfare organizations. Youth programs fund other youth programs. You get the idea.

For each organization receiving assets, you will need their corporate and financial information to confirm that they are qualified recipients.

Submit to the Attorney General

Once you have a plan and qualified recipients, a petition to the New York State Attorney General’s Office, Charities Bureau must be made.  They'll review it and either approve your plan or tell you what's missing. Note that if you're registered with the Charities Bureau, you need to be current on all filings first before the submission to the Attorney General can be made.

Step 2: Close Everything Down

Once approved, you will have a period to wrap things up, e.g., pay debts, distribute assets, etc.  Once things are finalized, you will have to update the Attorney General, obtain tax clearance, and make final filings.

Don't Forget

Behind on reports? File them and pay any fees before starting this process.

How Long?

Plan for several months from start to finish.

Final Thoughts

This process is bureaucratic, but it matters. It protects your board and ensures your assets keep doing good work. Take it step by step, keep good records, and make sure the Attorney General can reach you.

This is the final act of stewardship for your organization. Do it right.

This is general information, not legal advice. Consult an attorney for your specific situation.