•4. Must not
distribute income to members
•An NPO
must not distribute or otherwise make available for the personal
benefit of a member any of its income unless the member is a
RCAAA
•No part of the income of an NPO, whether current or accumulated, can be paid to a member, nor may it declare and pay dividends out of income
•An NPO may fail to comply with this requirement on a winding-up, dissolution, or amalgamation resulting in tax liability
•Certain types of payments will not, in and by themselves, disqualify an NPO, such as reasonable salaries, wages, fees or honorariums for services rendered to the NPO