Non-Profits

Non-profit organizations are essential pillars of our community, but they are not immune to financial distress. Whether caused by a decline in charitable giving, the loss of government grants, or rising operational overhead, insolvency can threaten a mission years in the making. At Gartland Thacker DelCotto PLLC, we believe that non-profits deserve the same level of sophisticated financial strategy as for-profit corporations, with the added sensitivity required to protect their reputation, mission and community impact.

Our attorneys understand that a non-profit is a business with a unique set of rules. We provide experienced guidance through consensual out-of-court workouts and Chapter 11 reorganizations, ensuring that the organization’s assets and mission are preserved whenever possible. When required, we assist in analyzing the most efficient options to address closing or selling operations. 

We assist boards and executives in navigating the complex legal landscape of non-profit insolvency, including:

• Fiduciary Duties of the Board – We advise directors and officers on their heightened responsibilities when an organization faces insolvency, helping to mitigate personal liability and protect the integrity of the mission.
• Restricted Assets & Trust Funds – We perform deep analysis of “property of the estate,” identifying which assets are held in trust or subject to donor restrictions that may limit their use or transfer.
• Asset Transfers & Mergers – If a standalone future is not viable, we facilitate the orderly transfer of assets or licenses to other mission-aligned entities to ensure the community continues to be served.
• Chapter 11 Feasibility & Strategy – We evaluate the unique application of bankruptcy rules to non-profits, including the technical aspects of plan confirmation and creditor priority.
• Regulatory Compliance – We manage the intersection of insolvency and regulatory requirements, particularly for non-profits in the healthcare or religious sectors.

Gartland Thacker DelCotto’s experience in the non-profit sector allows us to guide clients through high-stakes transitions and protect their interests in a complex, multi-party and mission-driven environment. To discuss your specific needs, call us today at 855-649-8289 or email our team to schedule a consultation.