Carmel City dissolves Promote Carmel amid governance and fiscal issues

The City Council of Carmel, Indiana, has officially dissolved Promote Carmel, a nonprofit organization that struggled financially and could no longer rely on city subsidies. The dissolution was confirmed on March 27, 2025, with the Secretary of State accepting the articles of dissolution filed earlier that week. The decision to close Promote Carmel was made by its board of directors, who recognized that the organization could not sustain its operations.

As part of the dissolution process, Promote Carmel's net assets, which include inventory from its retail store, will be distributed to the city or another nonprofit entity. This transition marks a significant shift in how the city will manage its affiliated organizations moving forward.

During the meeting, council members discussed the governance structure of Promote Carmel, highlighting issues that contributed to its failure. The board was primarily appointed by the mayor, which led to a lack of accountability and oversight. Council members expressed the need for a more balanced governance model that allows for greater independence and checks on executive control.

Experts consulted during the meeting suggested that the city should establish clearer guidelines for appointing board members, emphasizing the importance of selecting individuals with relevant experience in nonprofit management. The council acknowledged the necessity of implementing stricter reporting and accountability measures for any future affiliates to prevent similar issues.

The discussions underscored a commitment to learning from past mistakes and ensuring that future nonprofit organizations operate with transparency and effective governance. As Carmel moves forward, the city council aims to create a framework that fosters better oversight and aligns nonprofit operations with community needs.