Question

A small grassroots organization has been running a food pantry for about five years. They are located in the community center of a local church. The church is its only major partner. They typically open about two days per week and provide food for local families that stop in. The hours of operation are a bit inconsistent. Most of their donations, of late, have come from the church. Sometimes, they collect hats, scarves and gloves to distribute during winter months. It's nothing formal. They collect whatever is donated and distributed to local families who can use it. For the first time in five years, the pantry is bare, no donations or contributions are coming in, and very few families are stopping by. The church is thinking that it may be time to end the partnership. You recently joined the board of directors to gain some exposure to nonprofits; and at your first board meeting, they mention that they may be shutting down the food pantry and the church may be ending its partnership. Based on your reading to date, what actions would you recommend that the organization take before closing?

Things to consider:

-What are some of the inconsistencies presented in this case study?

-What immediate actions should the board consider before closing the organization?

-What type of evaluation should the board consider and why?

-How is the organization funded?

Answer 1

Role of board of directors:

If the closure is voluntary, then it can be done through a vote by the board of directors. The following are the actions that I would recommend before closing:

• Intimation may be sent through the managers to the staffs who were working in the pantry about the closure.
• In case of any subscribers or members, they can be given the refunds.
• The donors of the pantry to be informed about the closure. The details on the remaining funds available. How will it be used like for paying any debts available or they may be going to any other nonprofit operations of the church or the recent donations can be refunded.
• The board must also ensure that all he debts of the pantry relating to anything to be settled to the suppliers of groceries, people who supplied vegetables etc. are taken care of.
• Deciding on the assets of the church. Whether to sell them and use the proceeds or returning back the assets would be appropriate.
• Ensure that the final returns if any are submitted to the IRS before closing the organization and also submitting form 990.
• It would also be necessary to hold a final board meeting before closure to vote on the dissolution.
• Informing the relevant state authorities about the closure of the pantry’s operations.