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Pennsylvania Statutes Title 15 Pa.C.S.A. Corporations and Unincorporated Associations § 9132. Distributions prohibited;  compensation and other permitted payments

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) General rule.--Except as provided in subsection (b), a nonprofit association may not pay dividends or make distributions to a member or manager.

(b) Permitted payments.--A nonprofit association may:

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

(2) confer benefits on or make contributions to a member or manager in conformity with its nonprofit purposes;

(3) repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles;

(4) repay indebtedness to a member or manager;  and

(5) make distributions of property to members upon winding up and termination to the extent permitted by section 9135 (relating to winding up).

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Cite this article: FindLaw.com - Pennsylvania Statutes Title 15 Pa.C.S.A. Corporations and Unincorporated Associations § 9132. Distributions prohibited;  compensation and other permitted payments - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-15-pacsa-corporations-and-unincorporated-associations/pa-csa-sect-15-9132/

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