Distributions prohibited; compensation and other permitted payments. (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.) Editor's Notes Uniform Law: This section is based on § 26 of the Uniform Unincorporated Nonprofit Association Act (2008 Act).
District of Columbia Legal Code