Ohio § 1745.40 Distributions prohibited; compensation and other permitted payments

Ohio Statutes

§ 1745.40 — Distributions prohibited; compensation and other permitted payments

Ohio § 1745.40

Title 17Corporations-Partnerships

Ch. 1745Uniform Unincorporated Nonprofit Association Act

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Bluebook

Ohio Rev. Code Ann. § 1745.40 (2026).

Text

(A)Except as otherwise provided in division (B) of this section, an unincorporated nonprofit association may not pay dividends or distribute any part of its income or profits to a member, manager, officer, or other private person.

(B)An unincorporated nonprofit association may do any of the following:

(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;

(4)Make distributions of property to members upon winding up and termination to the extent permitted by section1745.52of the Revised Code.

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(A) Except as otherwise provided in division (B) of this section, an unincorporated nonprofit association may not pay dividends or distribute any part of its income or profits to a member, manager, officer, or other private person.

(B) An unincorporated nonprofit association may do any of the following:

(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;

(4) Make distributions of property to members upon winding up and termination to the extent permitted by section1745.52of the Revised Code.