Most state nonprofit corporation laws permit a conversion from for-profit to nonprofit. As an alternative, the for-profit may want to donate all of its assets to a new nonprofit entity and then formally dissolve. 

 

If you consider converting to a charity, you should also consider how the shareholders of the for-profit can get the maximum charitable contribution deduction in the transaction. In either case, you will have to file a separate application for exemption if you seek charitable exempt status.