Iowa § 501B.26 Distributions prohibited — compensation and other permitted payments

Iowa Statutes

§ 501B.26 — Distributions prohibited — compensation and other permitted payments

Iowa § 501B.26

Title XIIBUSINESS ENTITIES

Ch. 501BREVISED UNIFORM UNINCORPORATED NONPROFIT ASSOCIATION ACT

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Bluebook

Iowa Code § 501B.26 (2026).

Text

1.Except as otherwise provided in subsection 2, an unincorporated nonprofit association may not pay dividends or make distributions to a member or manager.

2.An unincorporated nonprofit association may do any of the following:

a.Pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered.

b.Confer benefits on a member or manager in conformity with its nonprofit purposes.

c.Repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles.

d.Make distributions of property to members upon winding up and termination to the extent permitted by section 501B.29.

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1. Except as otherwise provided in subsection 2, an unincorporated nonprofit association
may not pay dividends or make distributions to a member or manager.
2. An unincorporated nonprofit association may do any of the following:
a. Pay reasonable compensation or reimburse reasonable expenses to a member or
manager for services rendered.
b. Confer benefits on a member or manager in conformity with its nonprofit purposes.
c. Repurchase a membership and repay a capital contribution made by a member to the
extent authorized by its governing principles.
d. Make distributions of property to members upon winding up and termination to the
extent permitted by section 501B.29.