(a) Except as otherwise provided in subsection (b), an unincorporated nonprofit association may 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 contribution 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 § 4-28-629. Acts 2011, No. 202, § 2.
Arkansas Legal Code