Hi SAF -
Not sure that I agree that "scare tactics on 501(c)(3) are valid."
The post above says that AZinPA was told that IRS would immediately come in and take 30% of assets. That's flat-out untrue.
The accurate thing is that there are 501(c)(3) implications to dissolving. A 501(c)(3) is required to have dissolution language in its bylaws, and -- usually -- that language includes something about the assets of the 501(c)(3) going toward another 501(c)(3). It doesn't say it has to be immediate ("right this very second") and typical bylaws don't specify who that other 501(c)(3) is.
The IRS doesn't go back and re-assess "past" fundraisers. If those fundraisers were "OK" when they were done, they don't become "not OK" when you dissolve. That doesn't happen.
The "we're going to tell IRS on you" threat is only valid in the sense that a) IRS may check that you followed your dissolution clause when dissolving (though they're a bit busy
) and b) IRS may want to see that -- if there's a new group in place, the new group is following IRS rules on its funds. Of course, that's not a problem either for a new group that applies for its own 501(c)(3).
I've talked to a lot of IRS nonprofit specialists (they speak at our conferences) and they're amazingl;y helpful and they understand that small nonprofits don't have all kinds of staff and legal help to get them through these processes. If you make a well-intentioned mistake, they look to help (not hunt).
Just my $0.02.
Tim
