Monday, November 05, 2012

Dissolving a nonprofit: The lifespan of Event Committee Pittsburgh - Pittsburgh Post-Gazette

Dissolving a nonprofit: The lifespan of Event Committee Pittsburgh - Pittsburgh Post-Gazette: The attorney for K&L Gates handling Event Committee Pittsburgh's closure was unable to comment on the dissolution, according to the law firm's spokesman, Michael Rick.

However, John R. McGinley Jr., the attorney who spent six years working on the dissolution of St. Francis Hospital, said with revenues of $217, the cost of keeping Event Committee Pittsburgh exceeded the benefit of shelving the organization in case it might be needed again.

Mr. McGinley said there are hordes of zombie nonprofits (he called them "shell nonprofits," sort of like shell corporations) existing in name and incorporation, sitting on shelves in offices around the city but not doing anything.

"Operating small nonprofits can be very cost-intensive relative to the benefits," he said, adding that most are better off finding another nonprofit with a similar or the same mission and transferring their assets over, then dissolving.

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