Ala. Code § 10A-17-2.04: Profit-Making Activities; Distribution Limitations.

(a) A decentralized unincorporated nonprofit association may engage in profit-making activities. 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), a decentralized unincorporated nonprofit association may not make distributions to its members or administrators.

(c) A decentralized unincorporated nonprofit association may do all of the following:

(1) Pay reasonable compensation or reimburse reasonable expenses to its members, administrators, and persons outside of the nonprofit association for services rendered, including with respect to the administration and operation of the nonprofit association, which may include the provision 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.

(4) Make distributions of property to members upon winding up and termination of the decentralized unincorporated nonprofit association to the extent permitted by Section 10A-17-2.26.