NY Community Trust Publishes Article on What Happens to a Bankrupt Nonprofit’s Assets

NY Community Trust Publishes Article on What Happens to a Bankrupt Nonprofit’s Assets

Sometimes, charities face serious financial peril, maybe leading to reorganization through a Federal bankruptcy proceeding, a receivership under state law, or even closure.

Loyal donors want to know: Will any assets be left after the creditors are paid and, if so, what happens to those assets? And in a wind-down scenario, will my true charitable intentions be honored, and who makes that decision? A substantial donor has to wonder: Is my gift in jeopardy?...