Steps to Take
When a Massachusetts nonprofit charitable corporation (a "public charity") merges or consolidates with another corporation, there are several steps that must be followed in order to assure that the reorganization is appropriately conducted and fully documented with the Attorney General's Non-Profit Organizations/Public Charities Division. Most importantly, if a Massachusetts public charity merges or consolidates then the surviving corporation must also be a public charity governed under M.G.L. c. 180, s. 10A(a).
Before the Merger or Consolidation
Prior to the merger or consolidation:
- Review M.G.L. c. 180, s. 10, to assure that the merger or consolidation will be conducted in accordance with its provisions.
- Review M.G.L. c. 12, s. 8E and 8F to assure that each merging or consolidating corporation that is a public charity is both registered with, and in compliance with its reporting obligations to, the AGO. If necessary, a public charity's compliance can be confirmed by calling the AGO at (617) 727-2200, ext. 2101.
After the Merger or Consolidation
Subsequent to the merger or consolidation:
- Provide the AGO with a copy of the articles of merger or articles of consolidation, as filed with the Secretary of State, within 30 days of such filing.
Note that the surviving corporation, as a public charity, is required by M.G.L. c. 12, s. 8F, to continue to file annual financial reports with the AGO. The AGO's records will note as "deactivated" those corporations that do not survive the merger or consolidation.