Here's the boilerplate language the IRS sent us to use:
Upon dissolution of this organization, after paying or adequately providing for the debts and obligations of this PTO, the remaining assets shall be distributed to {school name}. If {school name} ceases to exist, remaining PTO assets shall be distributed for one or more exempt purposes within the meaning of section 501 (c) (3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose.
The first time around we had just stopped with the distribution to the school. They made us add the second part about what would happen if the school also ceased to exist.
I'm sure there are many variations that will work, but this is what they suggested for us.
I am working on our incorporation application and I realize we must have dissolution language that fits what the IRS wants us to have. My question is this: Do we have to be specific or will this suffice:
Under the dissolution of XXX PTO, assets shall be distributed for one or more exempt purposes under the meaning of section 501 (c)(3) of the Internal Revenue Service code, or the corresponding section of any future federal tax code or shall be distributed to the federal government, or to a state or local government for a public purpose. Any assets not so disposed of shall be disposed of by a Court of Competent Jurisdiction in the county in which the principal office of XXX PTO is then located, exclusively for such purposes or to such organization or organizations as said Court shall determine, which are organized and operated exclusively for such purposes.
This is the language taken from publication 557. TIA!
