Elementum

New-Structure and Spin-Off Setup.

Establish the reshaped organization or the new entity, legally and operationally, so the new shape is real rather than a plan on paper.

In Restructure or Spin Off, after deciding the new shape, with a nonprofit attorney.

Establish it legally, with an attorney

For an internal restructuring	For a spin-off
Governance and structural changes your bylaws require	Incorporate the new entity
Board and committee changes	Apply for its tax-exempt status
Updated governing documents	Establish its board and governing documents

For an internal restructuring

For a spin-off

Governance and structural changes your bylaws require

Incorporate the new entity

Board and committee changes

Apply for its tax-exempt status

Updated governing documents

Establish its board and governing documents

Legal steps completed and confirmed by the attorney

Set up its operations

For a spin-off: its own finances, systems, and leadership (route the systems setup to your operations work)

For a restructuring: the reorganized reporting and functions

The new shape is real when it is both legally established and operationally able to run. A spin-off that is incorporated but has no leadership, funding, or systems is not ready to stand on its own. Do not skip the legal establishment or attempt it without an attorney, because a mistake in incorporation, tax-exempt status, or asset transfer can create tax problems or liability. Feeds the Reshaping Transition Plan.

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