What happens to organization assets if FBLA dissolves?

• A. Assets are distributed to a like nonprofit with similar purposes, per applicable law.
• B. Assets are returned to the founding members.
• C. Assets are transferred to the current officers.
• D. Assets are donated to any charitable cause chosen by the board.

Answer: (A)

When a nonprofit dissolves, the remaining assets must continue to serve a public benefit by going to another nonprofit with a similar purpose, in line with applicable law. This keeps the charitable intent intact and prevents private gain from the organization’s assets. That’s why the correct answer is assets distributed to a like nonprofit with similar purposes, per applicable law.

Distributing assets back to founding members or transferring them to current officers would create private gain, which nonprofits are designed to avoid. Donating to any charitable cause chosen by the board could bypass the requirement to support a like-purpose organization and may run afoul of donor restrictions and state law.