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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am trying to dissolve my non profit corporation that

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I am trying to dissolve my non profit corporation that originated in 2013. It never got off the ground, I could never find the proper help needed to move it forward. I haven't had a bank account for 3 years. I filed the 990n every year. However I have began the process and sent all necessary documents to the Attorney General. Yet, to finalize the dissolution the Attorney General has requested Financial statements consisting of at least a balance sheet and income and expense statement for the past 3 years of activity. I do not know how to create these or how to generate these statements. Not sure what to do or what to supply them with to satisfy this last step.

Hi. Great Question. If you have a bank statement for the group, I would take the cash account over the last 3 years and place the balances as cash on a "balance sheet" for 12/31 of the last 3 years. If you have not done anything with the non profit over the last 3 years(had expenses or money coming in), I would state that - therefore, the reason for the dissolution of the business.

Customer: replied 1 month ago.

I'm sorry I haven't had a bank account for 3 years, because the fees were absorbing the small amount of start up cash we had.

Is there a template for basic balance sheet that we need. The treasurer is disgruntled and hasn't had communication with me for 2 1/2 years. So, can I do the requested documents for the Attorney General.

I did explain the situation to the Attorney General, but still they required this last step. Is there a simple solution? Thank you

I can send you a balance sheet and income statement template

Customer: replied 1 month ago.

Are there special requirements when filling it out that the AG needs to see specifically. Otherwise it will be a bunch of zeros. Will they accept that?

Please advise. Thank you. Can you attach the balance sheet here?

I am not familiar with the AG, but have knowledge of the balance sheet. I will defer to an expert who would know more, concerning the Attorney General's expectations.

Hi. My name's Lane ... Looks like the last expert opted out for some reason.

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Yes, as long as the balance sheet correctly reflects reality (all zeros meaning absolutely no assets) then this is fine.

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I would footnote (and cover letter) that there have been no assets for the last three years ... that bank fees absorbed the last amount on hand on XX/XX/XXXX.

Oh, it looks like there was not balance sheet attached... First in the nonprofit world balance sheet is now typically called the “statement of financial position” (SOP).

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The idea and the calculations are essentially the same as any business balance sheet, however.

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You should take a look at this. By FAR the most explanatory and easy to understand piece I've see, regarding a balance sheet for a non-profit.

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IN the non-profit world the terminology is a little different:

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Assets (what you have or what you are owed) minus Liabilities (what you owe to others) equals Net Assets (what’s left over)

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In the for profit world it's Assets minus liabilities = owners equity

Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10149
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 2 other Finance Specialists are ready to help you

I've attached a good (more concise) Non-Profit "Cheat Sheet"

Customer: replied 1 month ago.

Also there are none of these things. We have no payroll, and no mortgage, no assets. So will they accept a bunch of ZEROS?

Yes. What matters is that you report reqality

(reality) ... the truth

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