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HRS §414D-232

When a nonprofit can give money or benefits

This section says when a nonprofit corporation can buy back memberships or give money or benefits to members or affiliates. It must stay able to pay its debts and have assets at least equal to its liabilities. Public benefit corporations have special rules for distributions.

everyone

The statute, as written — Authorized distributions

(a) A corporation other than a public benefit corporation may purchase its memberships if, after the purchase is completed: (1) The corporation would be able to pay its debts as they become due in the usual course of its activities; and (2) The corporation's total assets would be equal to at least the sum of its total liabilities. (b) Corporations may make distributions upon dissolution in conformity with part XIII. (c) The public benefit corporation, in conformity with its purposes, may make distributions to and confer benefits on a member or an affiliate that is another public benefit corporation if, after any distribution is completed: (1) The public benefit corporation would be able to pay its debts as they become due in the usual course of its activities; and (2) The public benefit corporation's total assets would be equal to at least the sum of its total liabilities.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.