Hi Amber:

There are a lot of issues here, and much depends on if they are a 501(c)(3). I agree that it would be a good idea for them to talk to an attorney.

However, it should be noted that friends groups, if incorporated as a Michigan non-profit (which all should be) and especially if they are also a 501(c)(3) are stand-alone private corporations separate from the library.

They need to engage their own attorney separate from the library’s attorney.

I can send you some general information on dissolution of non-profits and 501(c)(3) entities, but they will need to talk to an attorney to properly dissolve.

I hope that’s helpful!

Sincerely,

Clare

Clare D. Membiela, MLS, J.D.

Library Law Consultant

Library of Michigan

MembielaC@michigan.gov

517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.

From: Michlib-l <michlib-l-bounces@mcls.org> On Behalf Of Amber Alexander via Michlib-l
Sent: Wednesday, March 24, 2021 12:22 PM
To: 'BF Tammy Borden' <fretlb@llcoop.org>; michlib-l@mcls.org
Subject: Re: [Michlib-l] Friends Dissolution

CAUTION: This is an External email. Please send suspicious emails to abuse@michigan.gov

Thank you to everyone on your answers.

I did look into their bylaws and it is not good and they contradict their own Articles of Incorporation. They have English law cited and all assets to be donated to any governmental entity or charitable organization of their choosing or by the “Court of Common Pleas.” I will need a lawyer for this one for sure.

Amber Alexander,MLIS

Library Director

Presque Isle District Library

181 E. Erie Street

Rogers City, MI 49779

989.734.2477, 222

www.pidl.org

From: BF Tammy Borden <fretlb@llcoop.org>
Sent: Wednesday, March 24, 2021 11:56 AM
To: Amber Alexander <director@pidl.org>
Subject: Re: [Michlib-l] Friends Dissolution

Amber, Would you report your findings? Thanks, Tammy Borden, Freeport District Library

From: "Amber Alexander via Michlib-l" <michlib-l@mcls.org>
To: michlib-l@mcls.org
Sent: Tuesday, March 23, 2021 4:06:11 PM
Subject: [Michlib-l] Friends Dissolution

I have several Friends groups that do not have full Boards and a few have questions to what happens if they were to dissolve.

I have been to the United for Libraries site and not seeing an answer to these kind of questions.

If a Friends group dissolves, where do their funds go? One particular group feels that they can, as a 501, can donate to any organization they choose. Is there anywhere I can find resources to answer these kinds of questions?

Has anyone dealt with these kind of issues?

Thanks,