In 2024, a century-old church chose to close and sell its property, including its 40,000-square-foot facility, and give their earnings to charity.
Immanuel Baptist Church in Greenville, North Carolina disbanded last fall due to an aging congregation and declining attendance. The church used the building’s sale proceeds—about $1.5 million—to make significant donations to nearly 70 charities supporting causes like food security, education, hospice care, and domestic violence prevention. Recipients expressed profound appreciation, noting the funds would enable them to expand programs and help more people in need.
The church’s donation of its assets to other charities is a direct response to a federal mandate. Under Federal law, when a charitable nonprofit dissolves, it must direct any leftover resources solely to another tax-exempt organization or a government body for a public purpose. As a result, the dissolution process requires identifying appropriate nonprofit or government entities to receive the assets.
According to the National Council of Nonprofits, dissolution begins when a nonprofit’s board of directors formally adopts a plan that clarifies how liabilities will be settled and how any remaining assets will be distributed exclusively to other tax-exempt organizations or government entities.
The nonprofit must inventory its assets, address outstanding contracts, notify staff and stakeholders, and designate a spokesperson to ensure consistent messaging. Following state filings and required approvals, the organization must submit its final Form 990 (and Schedule N if assets have been transferred) to the IRS. These legal, financial, and communication measures ensure a transparent and compliant dissolution.
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The process also entails identifying appropriate recipients, creating an inventory of all assets (including cash, vehicles, office equipment, data, and intellectual property), and managing proper transfers and documentation, such as deeds, contracts, and trademark registrations.
Before distributing these assets, the nonprofit must settle all outstanding debts and disburse the remaining funds according to the organization’s purpose and state laws.
The process can vary depending on the tax-exempt category. For 501(c)(3) organizations, the IRS mandates that any leftover assets be directed to another 501(c)(3) entity or used for a charitable purpose. The IRS requires the provision to be stated in a 501(c)(3) ‘s Articles of Incorporation.
Other exempt organizations have different guidelines; for example, most 501(c)(7) groups distribute remaining assets to their members based on each member’s share of the organization.
Former Greenville Mayor Pat Dunn, who chaired Immanuel’s board of deacons, said no one approached the church asking for handouts. “Every member was invited to list eight places they would like to have the money go, and we ended up honoring all of those, “he said.” Whatever was mentioned, we never gave any organization less than $5,000.”
The church’s more significant donations included $150,000 to CareNet Counseling for mental health therapy, $60,000 each to scholarship programs at East Carolina University and Pitt Community College, and $25,000 each to the American Cancer Society’s McConnell-Raab Hope Lodge and JOY Community Center and Soup Kitchen. Pitt County Council on Aging also received a $50,000 contribution.
The church did not specify to each organization how they should spend their funds. A few exceptions were donations earmarked for nursing scholarships at PCC and health sciences scholarships at ECU.
Immanuel also donated money for denominational initiatives, such as Baptist Children’s Homes and the benevolence fund at Atrium Health Wake Forest Baptist Medical Center. Around 20% of the proceeds from selling the church was given to the Cooperative Baptist Fellowship, with $175,000 allocated to CBF of North Carolina’s college and young adult ministry. An additional $35,000 went to Oakmont Baptist Church for a refugee ministry.
Although Immanuel members grieved the loss of their church, Dunn said having the opportunity to contribute to so many other organizations “was a beautiful and powerful experience.”
“It’s very sad closing the church that’s been in operation for 109 years, but then you can take the money and spread it around to people that are doing great things in this community helping people,” she said. “It was a way to continue to bless people in this community, which is what the church is all about. The church is about loving people and sharing love.”
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