West Virginia § 36-13-4 - 36-13-4. Profits; prohibitions on distributions and dividends; compensation and other permitted payments.
Full text of West Virginia West Virginia Code § 36-13-4 — 36-13-4. Profits; prohibitions on distributions and dividends; compensation and other permitted payments., with citation guidance and answers to common questions.
§ 36-13-4. 36-13-4. Profits; prohibitions on distributions and dividends; compensation and other permitted payments.
(a) A decentralized unincorporated nonprofit association may engage in profit-making activities, but profits from any activities shall be used in furtherance of, or set aside for, the nonprofit association's common nonprofit purpose.
(b) Except as provided in subsection (c) of this section, a decentralized unincorporated nonprofit association may not make distributions to its members or administrators.
(c) A decentralized unincorporated nonprofit association may:
(1) Pay reasonable compensation or reimburse reasonable expenses to its members, administrators and persons outside the nonprofit association for services rendered, including with respect to the administration and operation of the nonprofit association, which may include the provisions of collateral for the self-insurance of the nonprofit association, voting or participation in the nonprofit association's operations and activities;
(2) Confer benefits on its members and administrators in conformity with its common nonprofit purpose;
(3) Repurchase membership interests to the extent authorized by the nonprofit association's governing principles; and
(4) Make distributions of property to members upon winding up and termination of the decentralized unincorporated nonprofit association to the extent permitted by §36-13-26 of this code.
Source: official West Virginia text · Last verified 2026-08-27
Frequently Asked Questions About West Virginia § 36-13-4
What does West Virginia Code § 36-13-4 cover?
Section 36-13-4 ("36-13-4. Profits; prohibitions on distributions and dividends; compensation and other permitted payments.") is part of the West Virginia Code, the codified statutory law of West Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite West Virginia § 36-13-4?
A common citation format is "West Virginia Code § 36-13-4" (West Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of West Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the West Virginia official source linked on this page or consult a licensed West Virginia attorney.
How does West Virginia § 36-13-4 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in West Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in West Virginia.