Now that the Faribault County Development Corporation (FCDC) has dissolved, the board of directors will have to decide what to do with any remaining assets.
Reasons as to why the private, non-profit development group suddenly folded have not been made public.
Tripleanews.com has reached out to Mike Gustafson, FCDC board chairman, and has not received a response.
So what was the financial condition of FCDC before officials decided to cease operations?
County commissioner Bill Groskreutz says he has no idea.
“It’s a private group,” says Groskreutz. “They can keep their books closed.”
According to a website of an agency that monitors non-profit organizations, the last 990-EZ form filed with the IRS for 2015 shows FCDC had net assets totaling $168,928. Of that amount, $157,161 was listed as cash, savings and investments.
On the 990-EZ tax form FCDC is classified as a 501c3 organization and that could benefit the local area.
Phil Duran, incorporation service manager for Propel Non-profits in Minneapolis, says the IRS has certain requirements to follow.
Duran says any remaining assets must be distributed to one or more other 501c3 organizations or government entities.
“The IRS would not typically allow remaining assets to be distributed to its members, unless those members were themselves other 501c3 groups or government entities,” he adds.
Duran says if there are any remaining funds that are restricted, they may only be used for purposes specified by the original donor or grantor.