Yet dissolving a California religious corporation is not as simple as locking the doors and handing over the keys. It’s a structured legal process, designed to protect the congregation, the public, and the charitable assets entrusted to the church. And it must be done correctly to avoid personal liability for board members, tax complications, or state enforcement actions.

This is where many churches stumble—not out of negligence, but because no one ever taught them what the end of a ministry looks like on paper.

The Decision to Dissolve:
The process begins long before any forms are filed. California requires that the church’s governing body—usually the board of directors or congregation—formally vote to dissolve. In many congregations, the bylaws also require a vote of the membership. These votes must be documented, preserved, and consistent with the church’s governing documents.

This moment is often the hardest. It’s not just a legal step; it’s a pastoral one. But it’s also the foundation for everything that follows.

Wrapping Up the Church’s Affairs:
Once the decision is made, the church enters what California calls the “winding up” phase. This is where the board shifts from ministry leadership to stewardship of the church’s remaining responsibilities.

During winding up, the church must:

• Settle outstanding debts and obligations
• Notify employees and contractors
• Close bank accounts and financial relationships
• Address copier leases, facility agreements, and vendor contracts
• Inventory all assets, from sound equipment to real property

This is also the stage where many churches discover obligations they didn’t know they had—especially long‑term equipment leases or automatic contract renewals.

Distributing the Church’s Assets:
California law is clear: the assets of a dissolving religious nonprofit must be transferred to another nonprofit with a similar religious or charitable purpose. They cannot be distributed to members, pastors, or board members.

This means the church must choose where its legacy will live on—another congregation, a denominational body, a mission organization, or a local charity aligned with its values.

Every transfer must be documented. Every asset must be accounted for. This is one of the most scrutinized parts of the process.

Filing With the State:
Only after debts are settled and assets are distributed can the church file its dissolution paperwork. In California, this typically involves:

• Filing a Certificate of Dissolution with the Secretary of State
• Notifying the California Attorney General’s Registry of Charitable Trusts

The state wants proof that the church followed the rules—proper votes, proper asset transfers, proper winding up. If anything is missing, the dissolution can be delayed or rejected.

The Final Chapter:
When the last form is accepted and the final confirmation arrives, the church’s legal existence comes to an end. What remains is the legacy: the people who were shaped, the ministries that were built, the lives that were changed.

For church leaders, the process can feel overwhelming. But handled correctly, dissolution is not just a legal requirement—it’s an act of integrity. It ensures that the church’s final chapter is written with the same care and faithfulness that marked its beginning.

Please see our other related articles

Selling Church Property
Copier Leases
Corporations in Suspension
Why Use Bushore Real Estate

Disclaimer: Every situation is different and particular facts may vary thereby changing or altering a possible course of action or conclusion. The information contained herein is intended to be general in nature as laws vary between federal, state, counties, and municipalities and therefore may not apply to any given matter. This information is not intended to be legal advice or relied upon as a legal opinion, course of action, accounting, tax, or other professional services. You should consult the proper legal or professional advisor knowledgeable in the area that pertains to your particular situation.