2012 Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 3 - Corporations And Associations
Chapter 28 - Nonprofit Organizations
Subchapter 6 - -- Revised Uniform Unincorporated Nonprofit Association Act. [Effective January 1, 2012.]
§ 4-28-626 - Distributions prohibited; Compensation and other permitted payments. [Effective January 1, 2012.]

(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.