Alabama Decentralized Unincorporated Nonprofit Association Law

In force · Effective 2026-10-01 · Last verified 2026-09-26

The definition requires at least 100 members joined by mutual consent in digital activity under an agreement, for a common nonprofit purpose, including administering the affairs of a distributed ledger technology or network of smart contracts. A decentralized unincorporated nonprofit association is a legal entity separate from its members for the purposes of determining and enforcing rights, duties and liabilities in contract and tort.

Statutory text behind this summary

Official name

This article together with applicable provisions of Chapter 1 shall be known and may be cited as the Decentralized Unincorporated Nonprofit Association Law.

Code of Ala. 1975, §10A-17-2.01, Senate Bill 277, Enrolled (2026 Regular Session)
Sentence 1

Consists of at least 100 members joined by mutual consent in digital activity under an agreement, which may be in writing or inferred from conduct, for a common nonprofit purpose, including, but not limited to, administering the affairs of a distributed ledger technology or network of smart contracts.

Code of Ala. 1975, §10A-17-2.02(2)a., Senate Bill 277, Enrolled (2026 Regular Session)
Sentence 2

A decentralized unincorporated nonprofit association is a legal entity separate from its members for the purposes of determining and enforcing rights, duties, and liabilities in contract and tort.

Code of Ala. 1975, §10A-17-2.07(a), Senate Bill 277, Enrolled (2026 Regular Session)

Citation: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28

§10A-17-2.28 Principles of law and equity supplement this chapter unless displaced by a specific provision of this chapter.

Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)
Entity types: Decentralized unincorporated nonprofit association (commonly called DUNA)

DECENTRALIZED UNINCORPORATED NONPROFIT ASSOCIATION or NONPROFIT ASSOCIATION. An unincorporated nonprofit association that meets the following requirements:

Code of Ala. 1975, §10A-17-2.02(2), Senate Bill 277, Enrolled (2026 Regular Session)
Enacted: 2026-04-01

4-1-2026

Act 2026-325 (SB 277), Approved Date and Time, Legislative Act Detail: Act 2026-325 (SB 277)
Effective: 2026-10-01

This act shall become effective on October 1, 2026.

Section 3, Senate Bill 277, Enrolled (2026 Regular Session)
Official text: Senate Bill 277, Enrolled (2026 Regular Session)

Features

Select a feature to see the statutory text it comes from.

Name must include	The Law does not require a specific name suffix such as DAO or LAO. The source text does not address this. Checked: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)
Management	The Law does not require the association to have an administrator. No decentralized unincorporated nonprofit association shall be required to have an administrator, and the rights and duties of all administrators shall be established as part of the authorization of authority to act as an administrator. Code of Ala. 1975, §10A-17-2.23(c), Senate Bill 277, Enrolled (2026 Regular Session)
For profit or nonprofit	May engage in profit-making activities, but profits must be used for or set aside for the association's common nonprofit purpose. A decentralized unincorporated nonprofit association may engage in profit-making activities. Profits from any activities shall be used in furtherance of, or set aside for, the nonprofit association's common nonprofit purpose. Code of Ala. 1975, §10A-17-2.04(a), Senate Bill 277, Enrolled (2026 Regular Session)
Smart-contract identifier	The Law does not require a filed, publicly available smart-contract identifier. The source text does not address this. Checked: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)
Inactivity dissolution	The Law does not tie dissolution to a period of member inactivity. The source text does not address this. Checked: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)
Member and disclosure thresholds	Requires at least 100 members joined by mutual consent in digital activity for a common nonprofit purpose. Consists of at least 100 members joined by mutual consent in digital activity under an agreement, which may be in writing or inferred from conduct, for a common nonprofit purpose, including, but not limited to, administering the affairs of a distributed ledger technology or network of smart contracts. Code of Ala. 1975, §10A-17-2.02(2)a., Senate Bill 277, Enrolled (2026 Regular Session)
Liability (statutory text)	A person is not liable for a breach of the association's contract merely because the person is a member, an administrator, or someone authorized to participate in the association's management. A person is not liable for a breach of a decentralized unincorporated nonprofit association's contract merely because the person is a member, administrator, authorized to participate in the management of the affairs of the nonprofit association, or considered a member by the nonprofit association. Code of Ala. 1975, §10A-17-2.07(b), Senate Bill 277, Enrolled (2026 Regular Session)
Tax (statutory text)	The Law does not address taxation. The source text does not address this. Checked: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)
Government formation fee	The Law does not itself state a dollar formation fee. The source text does not address this. Checked: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)
Government annual fee	The Law does not impose an annual report fee. The source text does not address this. Checked: Code of Ala. 1975, §§ 10A-17-2.01 to 10A-17-2.28, Senate Bill 277, Enrolled (2026 Regular Session)

Amendments

None recorded.

Where to file

Alabama Secretary of State

Legal text behind this section

Filing body

A decentralized unincorporated nonprofit association may deliver to the Secretary of State for filing a statement appointing an agent authorized to receive service of process.

Code of Ala. 1975, §10A-17-2.10(a), Senate Bill 277, Enrolled (2026 Regular Session)

Optional filing: a statement appointing an agent to receive service of process.

A decentralized unincorporated nonprofit association may deliver to the Secretary of State for filing a statement appointing an agent authorized to receive service of process.

Code of Ala. 1975, §10A-17-2.10(a), Senate Bill 277, Enrolled (2026 Regular Session)

Sources

Senate Bill 277, Enrolled (2026 Regular Session), Alabama Legislature. Retrieved 2026-09-26. Archived copy.
Legislative Act Detail: Act 2026-325 (SB 277), Alabama Secretary of State. Retrieved 2026-09-26. Archived copy.

From the site operator

MIDAO, which operates this site, publishes a free guide to forming a DAO LLC in the Marshall Islands.

Cite this

daollc.org, "Alabama Decentralized Unincorporated Nonprofit Association Law," https://www.daollc.org/laws/us-al/duna/, verified 2026-09-26.