In the event of dissolution, to which entity are assets distributed?

• A. The government.
• B. A charity chosen by the board.
• C. A like nonprofit with similar purposes, per applicable law.
• D. The founders individually.

Answer: (C)

When a nonprofit dissolves, its remaining assets must go to another organization that shares a similar mission, under applicable law. This ensures the assets continue to serve a public benefit aligned with the original purpose and prevents private gain. The idea is often described as cy-près: if the exact charitable purpose can’t be carried out, assets should be distributed to a like nonprofit with similar purposes. That’s why the best choice is the option describing a like nonprofit with similar purposes, per applicable law. Distributing to the government, to a charity chosen by the board, or to the founders would not align with this principle and are not the standard directions for asset distribution in dissolution.