Nonprofit closures—A few recent examples

Image description: a row of candles burning. Photo by Eli Solitas on Unsplash

It is difficult to follow all the closures and restructuring that is happening in the nonprofit sector. Nonprofits that are forced to shut down may be overwhelmed with implementing the legal requirements to dissolve (learn more about these in NAWA’s Dissolving a Nonprofit Guide). Communications and learning from the experience can suffer as a result. There aren’t good statistics available about nonprofit closures. Here are some recent closures that I am aware of, with my comments.

Global Washington - The closure of Global Washington is being handled with grace. They are taking six months to wind down operations, communicating frequently with constituents, and working to ensure that some programs, assets, and networks can be carried forward. They are celebrating the great work that they have done over 16 years. Losing this organization is hard for the international development community here in Washington. It comes on top of severe distress caused by the dissolution of USAID. But at least opportunities to mourn together and affinity groups that will survive into the future are being created. This contrasts with abrupt closures that are happening to some other organizations (this example in the Midwest comes to mind). What makes the difference? Probably money. It takes resources to care for your people, communicate with participants, volunteers, and donors, and wrap up with less strain. Philanthropists take note—funding a good ending can be a great investment, ensuring that people don’t walk away from the cause entirely because of trauma surrounding the dissolution of the organization they worked or volunteered for. It can also ensure continuity of services as it gives time for programs to be transferred or thoughtful referrals made. For this reason, nonprofits need to act decisively when it becomes clear that there is not a viable path forward. This gives the organization more runway to close responsibly and more room for the mission to outlive the organization.

Tacoma Arts Live - Tacoma Arts Live is also shuttering after its 2025-2026 season. This announcement explains why the board reached the conclusion that they need to close, thanks the community, and speaks to the concerns of specific groups of constituents. Like Global Washington, they have planned an orderly process that allows them to meet obligation to ticket holders for this season. They also have a special challenge: ownership of the Tacoma Armory, which will be sold. This article speaks describes the process of receivership, through which Tacoma Arts Live will work with a court-appointed custodian “as a voluntary and quicker alternative to bankruptcy.”

National Novel Writing Month - Thanks to Caitlin Pontrella for writing about the demise of the National Novel Writing Month. This is a cautionary tale that unpacks some bad choices that led to the demise of a valued national nonprofit project. While I do believe that some nonprofits will be sunsetting without making egregious mistakes, it is also real that some organizations are driven to destruction by poor board or executive decisions, or even severe misunderstandings. We should find ways to learn from these experiences, so we don’t repeat our mistakes. This case study is helpful, and I look forward to seeing more in the future.

Earth Ministry – Earth Ministry, a Seattle-based national organization where I served as the Interim ED many years ago, quietly suspended operations in January citing financial challenges after 33 years of operations. The board turned stewardship of the organization over to a few volunteers who committed to “take over tending the bare minimum to keep the nonprofit status active until such time as new life springs forth.” A few months later, that small group laid down the work and is dissolving the organization. The end of the Earth Ministry era does not negate the transformative work they accomplished over three decades, which will have ripple effects for years to come due to the work they did to inspire thousands of people of faith to care for creation. I was struck when I received the first announcement that this seems to be the way that many nonprofits go—fading into the sunset slowly or entering a state of suspended animation in which a founder or dedicated board member continues to keep the organization alive, but without active programming.

NAMI Washington – The Washington chapter of the National Alliance on Mental Illness dissolved in March due to losing its charter from the national group. This article outlines grievances by local affiliates that came to a head following a “violation of inclusion and belonging” that took place in a training two years ago and was apparently not addressed well by leadership. This illustrates the importance of listening to constituents and taking concerns seriously. I’m glad to report that NAMI national is working with local affiliates in Washington state (there are 20 local chapters) to rebuild a state organization.

These examples illustrate that closures happen for a variety of reasons and are not always driven by financial struggles. Unfortunately, learning opportunities can be limited as people move on quickly, some of the facts may be confidential, and people prefer not to revisit difficulties.

Are you aware of other recent nonprofit closures? Please comment to help us all build a clearer picture of changes to our nonprofit sector.