KRS 273A.115: Distribution prohibited -- Compensation and other permitted payments.

(1) Except as otherwise provided in subsection (2) of this section, an unincorporated

nonprofit association shall not pay dividends or make distributions to a member or

manager.

(2) An unincorporated nonprofit association may:

(a) Pay reasonable compensation or reimburse reasonable expenses to a member

or manager for services rendered;

(b) Confer benefits on a member or manager in conformity with its nonprofit

purposes;

(c) Repurchase a membership and repay a capital contribution made by a member

to the extent authorized by its governing principles; or

(d) Make distributions of property to members upon winding up and termination

to the extent permitted by KRS 273A.130.