Federal law requires that proceeds from the sale of assets of tax-exempt entities go to charity.
There are a number of ways this requirement can be met. One is the establishment of a foundation to benefit the community previously served by the nonprofit. While most conversion foundations are dedicated to healthcare, they typically have adopted a broad definition of health and sometimes support much wider community purposes. Conversion foundations are rapidly becoming major financial forces in their local communities and beyond. There is no one source for information about conversion foundations.