By Shannon Thompson
In March of this year, the Iowa legislature adopted the "Revised Uniform Unincorporated Nonprofit Association Act", codified as Chapter 501B of the Iowa Code. The Act is effective as of July 1, 2010.
This Act applies to and governs unincorporated nonprofit associations. Small groups of homeowners are sometimes organized as "unincorporated associations" in condominium declarations and restrictive covenants. For instance, people living on a private street within a larger subdivision may be grouped together as an unincorporated association for the purpose of street maintenance and repair of the private street. The Act confers upon unincorporated nonprofit associations many of the benefits, rights and obligations of nonprofit corporations, such as the ability to sue and be sued, appoint a registered agent, and designate a manager. Among other things, the Act gives members of an unincorporated association the right to access records relating to the association's activities and financial condition.
Categories: Business Law