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.