Nonprofit Corporation Membership Exit and Termination in Illinois

Short answer Illinois permits nonprofit corporations to have one or more classes of members or none, with class qualifications and rights set in the articles or bylaws. Its general membership section does not prescribe a statewide resignation, expulsion, or suspension procedure. For a corporation holding assets for specified charitable or similar purposes, a membership certificate transfer cannot pay the transferor; a transfer violating that rule is void.
State
Illinois
Statute checked
October 3, 2026
Sources
2 statutes

At a glance

Governing law and covered members805 ILCS 105/107.03; nonprofit may have one or more member classes or none, as articles/bylaws state
Documents, classes, and decision makerArticles/bylaws set class qualifications and rights; § 107.03 does not name a general exit decision maker
Transfer of membership rightsFor specified charitable, religious, benevolent, or educational assets, certificate transfer cannot pay transferor; violating transfer void (§ 107.03(e))
Voluntary resignation§ 107.03 addresses membership and classes but gives no general resignation method; check articles/bylaws
Expulsion, suspension, and termination§ 107.03 addresses membership and classes without a general expulsion or suspension procedure; check articles/bylaws
Notice and opportunity to respond§ 107.03 states no exit-specific advance notice or hearing schedule; check governing documents
Rights and records after exitKeep voting-member names and addresses at registered/principal office; inspection right belongs to voting member (§ 107.75(a))
Dues and prior commitments§ 107.03 does not allocate dues after exit; review the member’s governing terms and commitments
Challenge period and remedy§ 107.03 has no exit-challenge period or remedy; a dispute requires applicable-law review

Requirements one by one

Membership and the ordinary exit path

Section 107.03(a) lets an Illinois nonprofit have one or more classes of members, or no members. The articles or bylaws must state each class's qualifications and rights (§ 107.03(b)); if there are no members, that choice must appear there too (§ 107.03(c)). When a matter has no voting members, the directors supply the member action otherwise required by the Act (§ 107.03(f)).

For an ordinary membership exit, identify the member's class and read the current articles, bylaws, and applicable commitments. Section 107.03 addresses membership status and a certificate-transfer limit, but does not specify a general resignation form, expulsion actor, hearing, notice lead time, surviving-dues rule, or challenge period. Article 7's member provisions likewise do not supply those exit mechanics. The governing documents and facts must be examined before describing the procedure for a particular member.

Section 107.75(a) requires a record of voting members' names and addresses at the registered or principal office. It gives a voting member a proper-purpose inspection right after a particularized written demand. Membership status and voting rights therefore matter for records access.

What trips people up

Section 107.03(e) regulates a transfer of a membership certificate where corporate assets are held for a charitable, religious, eleemosynary, benevolent, or educational purpose. The transferor cannot receive money or property consideration for that certificate transfer, and a violating transfer is void. That provision should not be recast as a general ban on every membership transfer.

Common questions

Can a nonprofit have no voting members for a matter?

Yes. Under § 107.03(f), the directors provide the notice, presence, vote, consent, or other action that the Act otherwise requires of members for that matter.

Does the member-record rule cover every nominal member?

Section 107.75(a) requires names and addresses of members entitled to vote. Its inspection right is also phrased for voting members. The class rights in § 107.03(b) determine which members have those rights.

Statutes and sources

The quotations come from current official Illinois General Assembly sections 107.03 and 107.75 of the General Not For Profit Corporation Act, accessed October 3, 2026.

Source links

Every statute quoted above, linked, with the date we checked it.

805 ILCS 105/107.03 · accessed 2026-10-03
805 ILCS 105/107.75 · accessed 2026-10-03
This page gives general information about ordinary nonprofit corporation membership law, not advice about a specific resignation, suspension, expulsion, or termination. Articles, bylaws, member class, specialized association law, and the facts of a particular decision may affect the result. A statutory procedure does not decide whether a particular decision was fair or lawful. Check current governing documents and official law with a licensed adviser before acting.

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