(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.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.)
Uniform Law: This section is based on § 26 of the Uniform Unincorporated Nonprofit Association Act (2008 Act).
Structure District of Columbia Code
Title 29 - Business Organizations. [Enacted title]
Chapter 11 - Unincorporated Nonprofit Associations
§ 29–1103. Relation to other law
§ 29–1105. Legal entity; duration; powers
§ 29–1106. Ownership and transfer of property
§ 29–1107. Statement of authority as to real property
§ 29–1109. Assertion and defense of claims
§ 29–1110. Effect of judgment or order
§ 29–1111. Member has no agency power
§ 29–1112. Approval by members
§ 29–1113. Procedural requirements for member meetings
§ 29–1115. Admission, suspension, dismissal, or expulsion of member
§ 29–1116. Member’s resignation
§ 29–1117. Membership interest not transferable
§ 29–1118. Selection of managers; management rights of managers
§ 29–1120. Procedural requirements for manager meetings
§ 29–1121. Right of members and managers to information
§ 29–1122. Distributions prohibited; compensation and other permitted payments
§ 29–1123. Reimbursement; indemnification; advancement of expenses