
Episode #173
173: Let It Go! | What Happens to the Money When a Nonprofit Closes?
When a nonprofit closes its doors, it opens up a bunch of questions. What happens to the mission? Are there other organizations or groups doing this work? And a big one – what do we do with everything that's left over? No individual gets to keep the money or assets leftover when a nonprofit dissolves. So what happens now, and how do you honor everything your organization stood for? Meghan and I tackle a bittersweet listener question from an executive director who chose to close a nonprofit with dignity rather than run it into the ground. Now they're sitting on a substantial amount of leftover funds, ready to play Fairy Godmother. Real Listener Question: "Our nonprofit is dissolving, and I want to be a good steward of the leftover funds. I worked with an attorney to dissolve properly and now I'm ready to give away a substantial amount. How do I choose who to give the money to? Do I give a big gift to a few orgs or smaller amounts to many? What would you do?" Meghan and I dig into what the law actually requires when a nonprofit dissolves, why this ED already knows the answer, and why the paralysis they're feeling has a lot more to do with grief than with grant strategy. What You'll Learn: The legal requirements you need to follow in a nonprofit dissolution Why a bigger gift to fewer orgs makes a far greater impact What you actually need to check before giving Why over-vetting the successor organization is a common hurdle to dissolving nonprofits What makes that final gift ACTUALLY difficult (and it's not the reason you think) Bottom line: There is no perfect formula that will make the end of a nonprofit hurt less. Do your due diligence, give the best gift you can, and let yourself grieve. Resources from this Episode Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct172-board-basics-by-a-teenager Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/09/CT_Ep173_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts : Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Follow us on Facebook , Instagram , Twitter






