PTO Today Q&A

Question: Distribution of Assets for Dissolution of PTO

I am preparing to fill out our states Articles of Incorporation form and there is one section not covered in the sample form from the Start up Tool Kit. It reads as follows: "DISTRIBUTION OF ASSETS: In the event of dissolution, the net assets will be distributed as follows:" I have no idea how to answer that, and I don't want to enter the wrong answer. How should I answer this?


Asked by Anonymous

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Answers:

Advice from PTO Today

Liz L writes:
Hi - The dissolution clause says that if your organization ceases operation, its assets will be given to another charitable group or to a government entity (not to a for-profit company or any individuals). Check this IRS link - where it says "sixth" is some suggested language for the dissolution clause.
https://www.irs.gov/charities-non-profits/suggested-language-for-corporations-and-associations

-Liz from PTO Today


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