A nonprofit went quiet. Everyone got busy, the work stopped, and somewhere along the way it got "dissolved." Now you're ready to bring it back. Is that even possible?

Meghan and I tackle a layered listener question that delves into a really misunderstood issue in the nonprofit world. We also get into what really happens when a founder-led org goes dark, why so many nonprofits stall out in their first few years, and what it actually takes to bring one back from the dead.

Real Listener Question:

"I was an officer for a small nonprofit that the president unilaterally decided to dissolve about a year ago. The org had been on pause while the board was busy with life stuff, and the president just did the dissolution herself. I really want to get back to the work. How do I revive the corporation? And do we have a leg up on getting our 501(c)(3) status again since we've already done it once?"

Meghan and I dig into what "dissolved" actually means, how a nonprofit might secretly still be alive, and the people side of reviving a mission that someone else already laid to rest.

What You'll Learn:

• Why so many new nonprofits stall out in their first few years
• The difference between truly dissolving and just abandoning a nonprofit
• How to check if your org still exists with the state and the IRS
• Why you don't lose tax exemption for missing a single 990
• Why the IRS gives you no special leg up for having been approved before
• The messy interpersonal drama that can arise when you're dealing with passionate people

Bottom line: Startup energy doesn't last forever, and pausing or closing a nonprofit doesn't make you a failure. But before you reanimate a dissolved org, check what's actually still alive, and tread carefully with the people who were there the first time around.

Resources from this Episode

• Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct174-public-charity-private-foundation
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/10/CT175_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

You got your 501(c)(3) letter, so you're all set... right? Not so fast. There's a second designation buried in that letter, and if it's not correct it could derail your grant applications, your tax filings, and your whole plan.

Meghan and I break down one of the most misunderstood distinctions in the nonprofit world: public charity versus private foundation. Both are 501(c)(3)s, but the difference between them changes how you file, what grants you qualify for, and how you're allowed to operate. We tackle two listener questions from founders who accidentally ended up in the wrong bucket without even knowing it.

Real Listener Question:

"One founder gives a lot of money to the nonprofit they started because it makes financial sense, and now their CPA is warning that this could turn the org into a private foundation. What does that mean? Another founder did all the paperwork themselves, got their 501(c)(3) letter, and then had a grant application rejected because they're "not a public charity." They're confused. Doesn't the letter say 501(c)(3)?"

Meghan and I dig into the public support test, why funding your own nonprofit can accidentally make you a private foundation, and how to check your real status before it comes back to bite you.

What You'll Learn:

• What the 501(c)(3) status actually is and why it has subcategories
• The difference between a public charity and a private foundation
• What the public support test is and why you need a third of your money from public sources
• How to look up your real status using the IRS exempt organization search
• Why private foundations file a 990-PF, not a regular 990

Bottom line: It's not "public charity good, private foundation bad." It's about which one fits the work you're actually trying to do. Know your real status and don't let a DIY paperwork shortcut haunt you three years down the line.

Resources from this Episode

• Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct173-money-when-nonprofit-closes
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/09/CT174_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

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