Dissolution of a Building Fund

by Dawn
(Aurora, CO)

We are a small church and the elder board has decided to dissolve the building fund. Are there any legal ramifications? What procedures need to be followed in order to do this?


Each contributor to the Fund has been asked if they want their money back upon dissolution, and each has declined. Can we transfer the money to the main checking? Do we need a letter from each contributor and do we need to file a form with the IRS in regards to this? Please help Thank you!

Answer

I believe all you need is the donor’s permission to transfer the monies to the general fund; however, I will contact a CPA and make for sure.




Church Accounting Package


www.freechurchaccounting.com

Comments for Dissolution of a Building Fund

Click here to add your own comments

Dec 14, 2009
On the Safe Side
by: CPA

I am unaware of any IRS restrictions on designated funds. I think - from the standpoint of accountability - I would get a letter from each donor as they proposed. This would help deal with any confusion that may arise later in the event someone became disgruntled.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Accounting.

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?