Winding up and termination of an unincorporated nonprofit association shall proceed in accordance with the following rules:
(1) All known debts and liabilities shall be paid or adequately provided for.
(2) Any property subject to a condition requiring return to the person designated by the donor shall be transferred to that person.
(3) Any property subject to a trust shall be distributed in accordance with the trust agreement.
(4) Any remaining property shall be distributed as follows:
(A) As required by law other than this chapter that requires assets of an association to be distributed to another person with similar nonprofit purposes;
(B) In accordance with the association’s governing principles or, in the absence of applicable governing principles, to the members of the association per capita or as the members direct; or
(C) If subparagraph (A) or (B) of this paragraph does not apply, in accordance with the law of unclaimed property in the District.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.)
This section is referenced in § 29-1122 and § 29-1124.
Uniform Law: This section is based on § 29 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