Nonprofit Corporation Membership Exit and Termination in Nebraska

Short answer A Nebraska nonprofit member may resign at any time, while obligations and commitments made beforehand can survive. Mutual benefit memberships may transfer only with article or bylaw permission; public benefit and religious memberships cannot transfer. Public and mutual benefit corporations must use a fair, reasonable, good-faith exit procedure, and a challenge must start within one year after the action takes effect.
State
Nebraska
Statute checked
October 3, 2026
Sources
9 statutes

At a glance

Governing law and covered membersNebraska Nonprofit Corporation Act; corporation need not have members (§ 21-1940)
Documents, classes, and decision makerArticles/bylaws set admission and class differences; authorized person hears member under written procedure (§§ 21-1938, -1941, -1947(b)(1))
Transfer of membership rightsMutual benefit: permission in documents; public benefit/religious: no transfer; later restriction needs affected member approval (§ 21-1942)
Voluntary resignationMember may resign at any time; earlier obligations/commitments remain (§ 21-1946)
Expulsion, suspension, and terminationPublic/mutual benefit: fair, reasonable, good-faith procedure (§ 21-1947(a))
Notice and opportunity to respondDocument route: 15 days’ written reasons notice, hearing 5 days before effect; contextual alternative; first-class/certified mail (§ 21-1947(b)-(c))
Rights and records after exitMember record supports class-by-class voting list; mutual benefit buyout may follow document terms (§§ 21-19,165(c), -1948(b))
Dues and prior commitmentsEarlier obligations survive resignation; expelled/suspended member may owe prior dues, assessments, fees (§§ 21-1944, -1946(b), -1947(e))
Challenge period and remedyBegin challenge, including defective-notice claim, within 1 year after effective action (§ 21-1947(d))

Requirements one by one

Transfer and resignation

Under § 21-1942(a)-(c), a mutual benefit member may transfer only if the articles or bylaws permit it. A public benefit or religious member may not transfer membership rights. A later restriction on an existing transfer right requires member approval and the affected member's approval. A member may resign at any time without erasing prior obligations or commitments (§ 21-1946(a)-(b)).

Expulsion, suspension, and termination

Under § 21-1947(a)-(e), public and mutual benefit corporations must use a fair, reasonable, good-faith procedure. A written document procedure can qualify with 15 days' advance notice stating reasons and a chance to respond orally or in writing to an authorized decision maker at least five days before the effective date. A procedure fair under all relevant circumstances is an alternative. Mailed notice uses first-class or certified mail to the last known address in corporate records.

What trips people up

Under § 21-1944, a provision or board resolution imposing dues alone does not create member liability. Under § 21-1948(a)-(b), public benefit and religious corporations cannot buy memberships; a mutual benefit corporation may buy a departing membership on article or bylaw terms, subject to the statutory payment limit. The corporation maintains a class-by-class member record that supports a voting list (§ 21-19,165(c)).

Common questions

Can a nonprofit operate without members?

Yes. Members are not required (§ 21-1940). When there are members, § 21-1941 permits class differences set by the articles or bylaws, and § 21-1938(a)-(b) allows admission criteria while requiring consent.

When must a challenge begin?

Under § 21-1947(d), a proceeding, including a defective-notice claim, must begin within one year after the exit action's effective date.

Statutes and sources

  • Neb. Rev. Stat. §§ 21-1938, -1940, -1941, -1942, -1944, -1946, -1947, -1948: member scope, transfer, exit, and duties. Official Nebraska statutes, accessed 2026-10-03; individual section links are recorded above.
  • Neb. Rev. Stat. § 21-19,165(c): member list record. Official section, accessed 2026-10-03.

Source links

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

Neb. Rev. Stat. § 21-1938(a)-(b) · accessed 2026-10-03
Neb. Rev. Stat. § 21-1940 · accessed 2026-10-03
Neb. Rev. Stat. § 21-1941 · accessed 2026-10-03
Neb. Rev. Stat. § 21-1942(a)-(c) · accessed 2026-10-03
Neb. Rev. Stat. § 21-1944 · accessed 2026-10-03
Neb. Rev. Stat. § 21-1946(a)-(b) · accessed 2026-10-03
Neb. Rev. Stat. § 21-1947(a)-(e) · accessed 2026-10-03
Neb. Rev. Stat. § 21-1948(a)-(b) · accessed 2026-10-03
Neb. Rev. Stat. § 21-19,165(c) · 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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