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/

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