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District of Columbia Code Division V. Local Business Affairs § 29-1122. Distributions prohibited; compensation and other permitted payments.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Except as otherwise provided in subsection (b) of this section, an unincorporated nonprofit association shall not pay dividends or make distributions to a member or manager.

(b) An unincorporated nonprofit association may:

(1) Pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;

(2) Confer benefits on a member or manager in conformity with its nonprofit purposes;

(3) Repurchase a membership and repay a capital contributions made by a member to the extent authorized by its governing principles; or

(4) Make distributions of property to members upon winding up and termination to the extent permitted by § 29-1125.

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Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 29-1122. Distributions prohibited; compensation and other permitted payments. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-29-1122/

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