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Title 36, Patriotic and National ObservancesRelease 119-110

§220108 Restrictions

Title 36 › Subtitle II — Patriotic and National Organizations › Part B — Organizations › CHAPTER 2201 — UNITED SERVICE ORGANIZATIONS, INCORPORATED › § 220108

Last updated Sep 22, 2026|Official source

Summary

The corporation must not run a business to make a profit unless the work is closely tied to its stated goals or is done to raise money for those goals. It may not sell stock or pay dividends. It must stay nonpolitical, cannot give money or help to someone running for office, and a large part of its work cannot be propaganda or trying to influence laws. No governor, officer, member, or employee may get the corporation’s income or assets while it exists or when it ends. The group may pay reasonable wages or repay real expenses if the board of governors approves. The corporation may not lend money to a governor, officer, member, or employee.

Full Legal Text

Title 36, §220108

Patriotic and National Observances, Source: USLM XML via OLRC

(a)Profit.—
The corporation may not engage in business activity for profit unless the activity is substantially related to—
(1)the purposes stated in section 220102 of this title; or
(2)raising funds to accomplish those purposes.
(b)Stock and Dividends.—
The corporation may not issue stock or declare or pay a dividend.
(c)Political Activities.—
The corporation shall be nonpolitical and may not provide financial aid or assistance to, or otherwise promote the candidacy of, an individual seeking elective public office. A substantial part of the activities of the corporation may not involve carrying on propaganda or otherwise attempting to influence legislation.
(d)Distribution of Income or Assets.—
The income or assets of the corporation may not inure to the benefit of a governor, officer, member, or employee or be distributed to any person during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer, employee, or other person or reimbursement for actual necessary expenses in amounts approved by the board of governors.
(e)Loans.—
The corporation may not make a loan to a governor, officer, member, or employee.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 220108(a)36:1304(b) (last sentence).Dec. 29, 1979, Pub. L. 96–165, § 4(a), (b), (d), (e), 93 Stat. 1269, 1270. 220108(b)36:1304(b) (1st sentence). 220108(c)36:1304(a). 220108(d)36:1304(d). 220108(e)36:1304(e). In subsection (a), before clause (1), the word “pecuniary” is omitted as unnecessary. In subsection (b), the words “any shares of capital” are omitted as unnecessary. In subsection (c), the words “as an organization” are omitted as unnecessary. In subsection (d) the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.

Reference

Citations & Metadata

Citation

36 U.S.C. § 220108

Title 36, Patriotic and National Observances

Last Updated

Sep 22, 2026

Release point: 119-110