Charter Cancellation Checklist
Unit
NO Charter shall be considered for cancellation without the Unit first involving and working with the Department and/or District/County Revitalization Team.
After the Revitalization Team has exhausted all means to save the Unit, the following shall be followed.
A. ___ A Unit wanting to relinquish their charter for cancellation must send an advance written notice to their membership
B. ___ The Unit must vote to relinquish their charter for cancellation at a regular unit meeting.
C. ___ If the Unit ceases to function or its charter has been revoked or cancelled, the charter and all Unit records and funds must be forwarded immediately to Department Headquarters.
D. ___ Closing Financial Accounts: consider the appropriate timing for closing financial accounts. Determine who is authorized to close any checking or savings accounts on behalf of the unit.
E. ___ Social Media: Does your unit have a website? Facebook page? The unit should consider the timing for shutting down any websites or social media pages.
Federal & State Dissolution Requirements
*This checklist is not a substitute for legal advice from a competent attorney licensed in the state in which your unit operates. Obtaining legal advice concerning your unit’s specific circumstances is highly recommended if your unit is considering dissolution.
A. ___ The dissolution process must be conducted in accordance with regulations of the state in which the unit was organized. Review your state’s law. The state generally provides a form to be filed called the “certificate of dissolution” that should be reviewed. Usually the state requires certification (signature and date) by one or two officers on the dissolution form.
After the State has accepted (“filed”) the dissolution:
A. ___ Notify other applicable departments in your state, such as the Department of Taxation or Revenue, and/or the department responsible for charitable registrations/solicitation (the Attorney General’s Office in many states) by sending a letter enclosing the dissolution (as stamped “filed” and dated by the appropriate department in your State).
B. ___Notify the IRS by:
1. filing the IRS 990/990 EZ/990N for the final fiscal year of the unit’s operations (check the Final Return Box which will notify the IRS that this is the last return that will be sent) and
2. sending a letter, with the certificate of dissolution (as stamped “filed” and dated by the State) enclosed, to EO Customer Account Services:
Internal Revenue Service
TE/GE Customer Account Services
P.O. Box 2508
Cincinnati, OH 45201
Department
When Charter has been revoked or cancelled and all records received from the Unit:
A. ___ The Unit charter cancellation must be voted on by the Department Executive Committee and then forwarded to National Headquarters for vote by the National Executive Committee.
National Headquarters
When the list of unit/units is received in National Headquarters by mail or email:
A. ___ National Headquarters adds the unit to list to be voted on by the National Executive
