Nonprofit Corporation Membership Exit and Termination in Oregon

Short answer An Oregon nonprofit member may resign at any time, but earlier obligations and commitments may survive. Membership and its rights generally cannot be transferred unless the articles or bylaws allow it. A public or mutual benefit corporation must use a fair, reasonable, good-faith procedure for expulsion, suspension, or termination; a challenge must begin within one year after the action takes effect.
State
Oregon
Statute checked
October 3, 2026
Sources
9 statutes

At a glance

Governing law and covered membersORS ch. 65; articles must state that corporation has members, or it has none (§ 65.137).
Documents, classes, and decision makerArticles/bylaws may create classes with different rights and obligations; authorized decision maker hears proposed exit (§§ 65.144(1), .167(2)).
Transfer of membership rightsNo transfer unless articles/bylaws allow; public/religious member generally cannot transfer for value (§ 65.147(1)–(3)).
Voluntary resignationMember may resign at any time; prior obligations/commitments remain (§ 65.164(1)–(2)).
Expulsion, suspension, and terminationPublic/mutual benefit: fair, reasonable, good-faith procedure; nonpayment can be grounds without hearing (§§ 65.154, .167(1)–(2)).
Notice and opportunity to respondDocument safe harbor: 15-day reasons notice, 5-day oral/written response to authorized person; contextual fairness also allowed (§§ 65.034, .167(2)).
Rights and records after exitMembership rights depend on class; corporation keeps a current member list and rights resolutions (§§ 65.144, .771(3), (5)).
Dues and prior commitmentsResignation preserves earlier obligations/commitments; expelled or suspended member may owe prior dues, assessments, fees (§§ 65.154, .164(2), .167(4)).
Challenge period and remedyProceeding, including defective-notice challenge, begins within one year after effective exit (§ 65.167(3)).

Requirements one by one

Covered members and transfers

Under § 65.137, articles must say the corporation has members for membership to exist. Articles or bylaws may create classes with different rights and obligations (§ 65.144(1)). Under § 65.147(1), a member cannot transfer a membership or a membership right unless the documents permit it, apart from proxies. Even when transfer rights exist, § 65.147(2) bars a public benefit or religious corporation member from transferring for value unless that member is itself a public benefit or religious corporation.

Resignation and involuntary exit

A member may resign at any time (§ 65.164(1)), while subsection (2) keeps earlier obligations and commitments in place. For public and mutual benefit corporations, § 65.167(1) requires a fair, reasonable, good-faith procedure before expulsion, suspension, or termination. Subsection (2) accepts a procedure that considers all relevant circumstances or the document-based notice and response route in the table. The person receiving a response must be authorized to withdraw the proposed action.

What trips people up

The 15-day notice and five-day response route in § 65.167(2) is one way to establish fairness, alongside a procedure fair and reasonable under the circumstances; it is not a universal fixed schedule. The notice must state the reasons and comply with § 65.034(2)–(3), (7). Under § 65.154, nonpayment can be grounds for exit without a hearing, but merely authorizing dues in a document or board resolution does not itself create a payment liability. Section 65.167(4) preserves possible liability for obligations incurred before an involuntary exit.

A challenge, including one alleging defective notice, must start within one year after the effective date of the expulsion, suspension, or termination (§ 65.167(3)). The statute fixes the filing window; it does not decide whether a particular procedure was fair.

Common questions

Can a corporation later restrict an existing transfer right? Under § 65.147(3), a new restriction does not bind a membership issued before its adoption unless both the members and the affected member approve it.

Does resignation erase dues already owed? Section 65.164(2) preserves earlier obligations and commitments. Section 65.154 says a dues provision or board resolution alone does not create payment liability, so the actual obligation needs separate review.

Where are class rights recorded? Under § 65.771(5)(c), the corporation keeps board resolutions about a class's characteristics, qualifications, rights, limitations, and obligations. Under § 65.771(3), it also keeps a current member record from which a class-by-class list can be prepared.

Statutes and sources

Source links

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

Or. Rev. Stat. § 65.137 · accessed 2026-10-03
Or. Rev. Stat. § 65.144(1) · accessed 2026-10-03
Or. Rev. Stat. § 65.147(1)–(3) · accessed 2026-10-03
Or. Rev. Stat. § 65.154 · accessed 2026-10-03
Or. Rev. Stat. § 65.164(1)–(2) · accessed 2026-10-03
Or. Rev. Stat. § 65.167(1)–(4) · accessed 2026-10-03
Or. Rev. Stat. § 65.771(3) · accessed 2026-10-03
Or. Rev. Stat. § 65.771(5)(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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