In Arizona, there is a process to follow in dissolving a nonprofit organization. This is to guarantee a correct closure of your organization and compliance with state laws. Here’s how to dissolve a nonprofit organization in the state of Arizona:

Board Resolution

Call a meeting of the nonprofit’s board of directors to start the dissolution process. Pass a resolution on the dissolution of the nonprofit. The meeting minutes must include:

• State the decision to dissolve the organization
• Include the dissolution date
• The board members who voted to dissolve must affix their names and signatures

Compliance with Obligations

Maintain that the organization meets all of its legal and financial requirements. This includes settling any unpaid taxes, debts, or contractual obligations.

Asset Distribution

Determine how the nonprofit’s residual assets, if any, will be allocated. Arizona law mandates that:

• A tax-exempt organization must be the recipient of residual assets
• Any residual assets must be used for a tax-exempt purpose

This step happens after meeting all the financial and legal obligations. This decision should be reflected in the board’s minutes.

File Dissolution Documents

• Complete the requisite dissolution documentation with the Arizona Corporation Commission (ACC). This is the state organization in charge of regulating nonprofits in Arizona. You can send these papers online or via mail. Required forms often include:
  1. Articles of Dissolution (Form NPO-03). This can be submitted online or by mail.
  2. The cover letter must detail the dissolution process. Provide the needed contact information.
• Pay the filing fee,. Attach the proof of payment to dissolution documents.

Notify Stakeholders

Notify major stakeholders of the dissolution. This includes workers, volunteers, funders, and vendors. Ensure that all applicable employment termination and contractual duties are satisfied.

Cancel State Licenses and Permits

Apply for the cancelation of any active state licenses and permits. It should include business licenses and charitable solicitation permits.

Notify the IRS

Notify the IRS of the dissolution if your organization maintains a 01(c)(3) tax-exempt status. Fill out the necessary IRS forms. Provide information on the dissolution and distribution of assets. Seek the help of a tax professional or a legal expert if needed.

Dispose of Records

Dispose of any non-essential data responsibly and save important documents in compliance with state and federal standards. Consult legal counsel for information on record retention obligations.

Publication Notice

Arizona law may compel you to post a notice of dissolution in a local newspaper. Publication must be within the nonprofit’s jurisdiction. Consult with a lawyer to see if this is necessary in your specific case.

Final IRS Filings

Send the IRS any final federal tax returns. Form 990 is an example. This is to document the dissolution and asset distribution.

Seek Legal and Accounting Guidance

Seek the help of legal and accounting experts throughout the dissolution process. This is to make sure you are adhering to all relevant local, state, and federal laws. These experts can help you avoid any legal and financial problems.

Document the Dissolution

Keep detailed records of every step involved in the dissolution process to prove compliance:

• Board resolutions
• Filings
• Correspondence
• Asset distribution

Dissolving a nonprofit organization in Arizona necessitates meticulous attention to detail and strict respect for legal protocols. Speak with a nonprofit law attorney to help you navigate through the entire process of dissolution.