{"id":590915,"date":"2022-06-15T11:47:22","date_gmt":"2022-06-15T15:47:22","guid":{"rendered":"https:\/\/joangarry.com\/?p=590915"},"modified":"2022-07-11T17:13:34","modified_gmt":"2022-07-11T21:13:34","slug":"how-to-dissolve-a-nonprofit","status":"publish","type":"post","link":"https:\/\/joangarry.com\/how-to-dissolve-a-nonprofit\/","title":{"rendered":"Before You Dissolve Your Nonprofit\u2026"},"content":{"rendered":"

A few weeks back, I got an email from a striving director.<\/p>\n

My organization is struggling. I’m making calls every single month to hold at least one vendor at bay or to negotiate a way to pay some<\/strong> of the bills that have piled up. Our development director just resigned for a better-paying position with another organization. I’m upset about it for sure, but I’m also conflicted. After all, at least now we’ll save money on that salary…<\/em><\/p>\n

She told me she had been here before and somehow managed her way through. She actually didn\u2019t seem burned out. In fact, her question was \u201cHow many times do we dig out of the ditch before we should really call the question?\u201d<\/em><\/p>\n

In case you\u2019re wondering, \u201cthe question\u201d is: When is the right time to dissolve a nonprofit?<\/strong><\/p>\n

A few board members she respected thought maybe now was time; most of the others just assumed the E.D. would pull yet another rabbit out of the hat\u2026<\/p>\n

In many cases like this, the question is called when there isn\u2019t enough money. Yep, it becomes all about the almighty dollar sign.<\/p>\n

As a result, the executive director spends a great deal of time focusing on money and asking board members to do more \u2014 which leads to a whole lot of tension and uncertainty.<\/p>\n

And because you spend so much time talking about money, conversations about non-financial success and impact start to take a back seat. Now all of a sudden your board begins to feel that the organization\u2019s impact does not always feel big enough to warrant the infrastructure investment.<\/p>\n

And so how do you know? How can you possibly abandon the work? The clients?<\/p>\n

Believe it or not, this is EXACTLY the time in the lifespan of your organization when you DO NOT<\/span> throw in the towel and dissolve your nonprofit.<\/strong><\/p>\n

It\u2019s actually the time you most need to dig deep, get strategic, ask tough questions, and be creative \u2014 and this post will help you have that kind of conversation with your board leaders and senior staff.<\/p>\n

So if the drumbeats of “maybe we should close shop” are getting louder, keep on reading. Following these steps will help you make a smart well-informed decision that puts your mission first \u2014 regardless of the choice you make.<\/p>\n

There is too much riding on this. The folks you serve deserve nothing less.<\/p>\n

<\/p>\n

The recipe demands that you all agree to spend a half-day together digging in and addressing this big hairy question wisely. It should be a high-level, generative meeting. And you need to set aside any issues of financial scarcity. Circulating financial statements or trends year-over-year tells only a part of the story and cannot drive your decision.<\/p>\n

BEFORE THE BIG MEETING<\/h2>\n

Two essential pieces of pre-work must be done and must be shared with your board and senior staff before you discuss whether it\u2019s time to dissolve your nonprofit organization.<\/p>\n