---
kind: "section"
citation: "36 U.S.C. § 220108"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "220108"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/220108"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 2201 — United Service Organizations, Incorporated"
---

# §220108. Restrictions

- (a) **Profit.—** The [corporation](/usc/36/220501.md?p=b-7) may not engage in business activity for profit unless the activity is substantially related to—
  - (1) the purposes stated in [section 220102 of this title](/usc/36/220102.md); or
  - (2) raising funds to accomplish those purposes.
- (b) **Stock and Dividends.—** The [corporation](/usc/36/220501.md?p=b-7) may not issue stock or declare or pay a dividend.
- (c) **Political Activities.—** The [corporation](/usc/36/220501.md?p=b-7) shall be nonpolitical and may not provide financial aid or assistance to, or otherwise promote the candidacy of, an individual seeking elective public office. A substantial part of the activities of the [corporation](/usc/36/220501.md?p=b-7) may not involve carrying on propaganda or otherwise attempting to influence legislation.
- (d) **Distribution of Income or Assets.—** The income or assets of the [corporation](/usc/36/220501.md?p=b-7) may not inure to the benefit of a governor, officer, member, or employee or be distributed to any person during the life of the [corporation](/usc/36/220501.md?p=b-7) or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer, employee, or other person or reimbursement for actual necessary expenses in amounts approved by the board of governors.
- (e) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) may not make a loan to a governor, officer, member, or employee.

## Source credit

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1461.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 220108(a) | 36:1304(b) (last sentence). | Dec. 29, 1979, Pub. L. 96–165, § 4(a), (b), (d), (e), 93 Stat. 1269, 1270. |
| 220108(b) | 36:1304(b) (1st sentence). |  |
| 220108(c) | 36:1304(a). |  |
| 220108(d) | 36:1304(d). |  |
| 220108(e) | 36:1304(e). |  |

In subsection (a), before clause (1), the word “pecuniary” is omitted as unnecessary.

In subsection (b), the words “any shares of capital” are omitted as unnecessary.

In subsection (c), the words “as an organization” are omitted as unnecessary.

In subsection (d) the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.