31A-8-406. Distribution by nonprofit organizations.
A nonprofit organization may pay compensation in a reasonable amount to its members,
trustees, or officers for services rendered, may make reasonable incentive payments to its
providers, may confer benefits upon its members in conformity with its purposes, may pay
interest on certificates of indebtedness issued by it evidencing capital contributions, and upon
dissolution or final liquidation may make distributions to its members as permitted by Title 16,
Chapter 6a, Utah Revised Nonprofit Corporation Act, and no such payment, benefit, or
distribution shall be considered to be a dividend or distribution of income. Notwithstanding
Section 31A-8-105, and in addition to the powers granted in that section, a nonprofit organization
has all powers conferred upon it by Section 16-6a-302.
Amended by Chapter 300, 2000 General Session
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Last revised: Thursday, May 28, 2009