--- kind: "section" citation: "12 U.S.C. § 3051" title: "12" title_heading: "Banks and Banking" number: "3051" heading: "Nonprofit corporation" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/12/3051" units: - "Chapter 31 — National Consumer Cooperative Bank" - "Subchapter II — Office of Self-Help Development and Technical Assistance" --- # §3051. Nonprofit corporation - (a) **Office of Self-Help Development and Technical Assistance abolished; transfer of assets, etc.** - (1) Upon the incorporation of the nonprofit corporation described in [subsection (b)](#b), the Office of Self-Help Development and Technical Assistance is hereby abolished. - (2) - (A) If the nonprofit corporation described in [subsection (b)](#b) agrees to accept the liabilities of the Office, the Bank, notwithstanding any other provision of law, shall transfer all assets, liabilities, and property of the Office to such nonprofit corporation on the day on which such nonprofit corporation is incorporated. - (B) Such assets shall include all sums which are appropriated to the Office by the Congress and all sums which are contained in the Account established pursuant to [section 3042 of this title](/usc/12/3042.md). If any such sums are appropriated after the date on which the transfer described in [subparagraph (A)](#a-2-A) occurs, the Bank shall promptly transfer such sums to such nonprofit corporation. - (b) **Establishment; Board of Directors; functions, etc.** - (1) As soon as possible after August 13, 1981, the [Board](/usc/12/1861.md?p=b-3) shall establish a nonprofit corporation under the laws of the District of Columbia and, notwithstanding the laws of the District of Columbia, name the [directors](/usc/12/5481.md?p=10) of such nonprofit corporation. - (2) Notwithstanding the laws of the District of Columbia, the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of such nonprofit corporation shall— - (A) select an executive [director](/usc/12/5481.md?p=10) who shall be responsible for the administration of such nonprofit corporation; - (B) set the compensation of such executive [director](/usc/12/5481.md?p=10) and the other employees of such nonprofit corporation; - (C) promulgate and publish the policies of such nonprofit corporation and make such policies available at all times to eligible cooperatives; and - (D) perform the functions specified in subparagraphs [(A)](#b-3-A) and [(C)](#b-3-C) of paragraph (3). - (3) Such nonprofit corporation shall only perform— - (A) the functions which are authorized to be performed pursuant to sections [3043](/usc/12/3043.md) through [3048](/usc/12/3048.md) of this title and [section 3050 of this title](/usc/12/3050.md); - (B) such functions as are necessary to comply with the laws under which it was incorporated in the District of Columbia; and - (C) such functions as are necessary to remain qualified as an organization described in [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3). - (4) Notwithstanding any other provision of law— - (A) the Bank may provide administrative or staff support to such nonprofit corporation; and - (B) any member of the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of the Bank may serve as a member of the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of such nonprofit corporation. - (c) **Treatment for tax purposes—** - (1) Notwithstanding any other provision of law, such nonprofit corporation shall be deemed to be, and treated as, qualified as an organization described in [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3) from the date on which such nonprofit corporation is established under the laws of the District of Columbia until the date on which the Internal Revenue Service makes a final determination on the application which such nonprofit corporation will submit to the Internal Revenue Service seeking status as an organization qualifying under such section. - (2) When performed by such nonprofit corporation, the functions described in [subsection (b)(3)(A)](#b-3-A) shall be deemed to be performed for “charitable purposes” within the meaning of [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3). - (d) **Contributions from the Bank—** - (1) The [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of the Bank may make contributions to the nonprofit corporation in such amounts as the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of the Bank deems appropriate, except that— - (A) such contributions may be made only out of the Bank’s earnings, determined in accordance with generally accepted accounting principles; and - (B) the Bank shall set aside amounts sufficient to satisfy its obligations to the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury for payments of principal and interest on class A notes and other debt before making any contributions to such nonprofit corporation. - (2) During any period in which the nonprofit corporation described in [subsection (b)](#b) is qualified as an organization described in [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3), contributions made by the Bank pursuant to [paragraph (1)](#d-1) shall be treated as charitable contributions within the meaning of [section 170(c)(2) of title 26](/usc/26/170.md?p=c-2), and may be deducted notwithstanding the provisions of [section 170(b)(2) of title 26](/usc/26/170.md?p=b-2). - (3) During any period in which the nonprofit corporation described in [subsection (b)](#b) is qualified as an organization described in [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3), contributions to such nonprofit corporation by any [person](/usc/12/5481.md?p=19) shall qualify as charitable contributions, as defined in [section 170(c) of title 26](/usc/26/170.md?p=c), for purposes of the charitable contribution deduction provided for in [section 170(a) of title 26](/usc/26/170.md?p=a), and shall also qualify for the deductions for estate and gift tax purposes provided for in sections 2055 and 2522 of title 26. - (e) **Conflict of interest rules—** Notwithstanding the laws of the District of Columbia, the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of such nonprofit corporation shall adopt and publish its own conflict of interest rules which shall be no less stringent in effect than the conflict of interest provisions adopted by the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10) of the Bank pursuant to [section 3024 of this title](/usc/12/3024.md). ## Source credit (Pub. L. 95–351, title II, § 211, as added Pub. L. 97–35, title III, § 395(a), Aug. 13, 1981, 95 Stat. 437; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.) ## Notes ### Editorial Notes ### Amendments 1986—Subsecs. (b)(3)(C), (c), (d)(2), (3). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” wherever appearing, which for purposes of codification was translated as “title 26” thus requiring no change in text.