What exactly does ‘dissolution’ mean?
Dissolution is a change in a nonprofit’s corporate status, which is governed by state law (Colorado state law for the ACVIM Foundation). In essence, it is a process to cease operations of the nonprofit by completing a series of actions and regulatory filings under the guidance of legal counsel.
Is a vote of the membership required for the dissolution of the ACVIM Foundation?
The Board of Regents approved a motion to dissolve the ACVIM Foundation on December 20, 2016. Per the Foundation’s Articles ohttp://www.acvim.org/Foundation/ACVIM-Foundation-Dissolutionf Incorporation, the ACVIM is the sole voting member of the Foundation (a nonprofit corporation). The purpose and business of the Foundation was intended “exclusively for the benefit of the American College of Veterinary Internal Medicine.” As such, the ACVIM Board of Regents is authorized to make decisions for the Foundation, including dissolution.
How is the news of the Foundation dissolution being communicated to stakeholders?
A detailed communications plan
has been developed and stakeholders are being contacted throughout the month of January. Information relevant to different stakeholders (e.g. donors, grant recipients) is being shared as quickly as possible.
What happens to the Foundation’s donations (and other assets)?
When a charitable nonprofit organization is dissolved, all outstanding financial obligations must be resolved first (similar to a bankruptcy). Federal law requires a tax-exempt charitable nonprofit that is dissolving to distribute its remaining assets ONLY to another tax-exempt organization. “Assets” can include cash, or tangible property, such as office equipment, and/or intangible property, such as the contents of a database, or intellectual property owned by the dissolving organization.
After resolving all outstanding financial obligations for the ACVIM Foundation, the remaining assets (including cash from donations) will be distributed to another tax-exempt organization with a similar focus. The transition team is actively working on the steps required to complete this ‘dissolving donation’ and will strive to preserve the donors’ intentions for the funds to the extent possible.
How does the College plan to continue to support the Foundation’s mission?
The newly approved 5-year strategic plan includes two major goals which align with the Foundation’s mission of supporting vital educational and scientific initiatives. Goal 2 - Improve Residency Training and the Certification Process includes strategies and tactics which focus on the development and alignment of resources and processes to continually assess and improve the credentialing process and quality of residency training programs. Goal 4 - Improve Research Facilitation includes strategies and tactics which focus on fostering, funding and promoting research, along with supporting Diplomates and residents in the research community.