What exactly does ‘dissolution’ mean?
Dissolution is a change in a nonprofit’s corporate status, which is governed by state law (Maryland state law for the EC-LTRC). In essence, it is a process to cease operations of the nonprofit by completing a series of actions and regulatory filings under the guidance of legal counsel.
Is a vote of the membership required for the dissolution of the EC-LTRC?
The EC-LTRC Board of Directors approved a motion to dissolve the EC-LTRC on August 13, 2018.
How is the news of the Foundation dissolution being communicated to stakeholders?
A detailed plan has been developed and stakeholders are being contacted throughout the months of November and December. Information relevant to different stakeholders (e.g. donors, grant recipients) is being shared as quickly as possible.
What happens to the Foundation’s donations (and other assets)?
When a charitable nonprofit organization is dissolved, all outstanding financial obligations must be resolved first. Federal law requires a tax-exempt charitable nonprofit that is dissolving to distribute its remaining assets ONLY to another tax-exempt organization. “Assets” can include cash, or tangible property, such as office equipment, and/or intangible property, such as the contents of a database, or intellectual property owned by the dissolving organization.
After resolving all outstanding financial obligations for the EC-LTRC, the remaining assets (including cash from donations) will be distributed to another tax-exempt organization with a similar focus and is committed to flood recovery in Ellicott City . The transition team is actively working on the steps required to complete this ‘dissolving donation’ and will strive to preserve the donors’ intentions for the funds to the extent possible.
How can one continue to support the Ellicott City Recovery and the EC-LTRC’s mission?
Ellicott City Flood Recovery are being operated through the Howard County Recovery Plan, Howard County Recovery Manager, the CFHC Disaster Relief Fund with subsequent Advisory Board, as well as the Howard County Health, Housing and Human Services Committee. Please visit http://ecfloodrecovery.org for further information.