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LegalText 36 U.S.C. § 220108 Restrictions us united_states_code code_section 36 PATRIOTIC AND NATIONAL OBSERVANCES, CEREMONIES, AND ORGANIZATIONS 2201 UNITED SERVICE ORGANIZATIONS, INCORPORATED 220108 36 U.S.C. § 220108 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc36@119-100.zip /us/usc/t36/s220108 data/legal/raw/us/code/title-36/usc36.xml 36cf797bcc4d033f0099f09d62f0ec9fe02125dd7640da883c192aa761910578 d8bb3c94f12bbd56e49d7a2bc029b1f4ab0bb8b69327e9ddbdf94d7adcac580d c4bf1b91b8ee27660bee5af28a7727833fd2f0eb0556264ef0f71a47c7b85baf 2026-07-04 official
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36 U.S.C. § 220108 - Restrictions

Text

(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.

(Pub. L. 105225, Aug. 12, 1998, 112 Stat. 1461.)

Notes

Historical and Revision Notes RevisedSectionSource (U.S. Code)Source (Statutes at Large) 220108(a)36:1304(b) (last sentence).Dec. 29, 1979, Pub. L. 96165, § 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.