committee budgets

Our HOA has various committees who are given yearly budgets for thier operation. Some of the committees require purchasing items which cannot be charged so the committee chairperson uses their own credit card for the purchase and submits the bill for reimbursement. Our social committee would like to set-up another system where instead of being given a community budget for social events, they want to raise their own money through 50-50 collections and keep and use that money to finance the community socials. The Board sees this as problematic because there is no accountablilty for the expenditures and it operates outside the budget system. Any thoughts?

You said: The Board sees this as problematic because there is no accountablilty for the expenditures and it operates outside the budget system.

That is correct.

Are these social activities?

If so, set up a voluntary group to put on events. Try to get donations, if it is.

Our HOA allows $500 per year for social activites (one of our "purpose" statements in our bylaws)

A committee takes that and puts on all kinds of activities throughout the year. But they do it by also adding donations. They give a financial report to the board on how they spent the $500.

The social committee has historically been a committee of the board, as are all of our committees. However, they sponsor pot luck suppers once a month in a community center that is rented by the Association. We have liability insurance on the building and Directors, Officers and Committee Insurance coverage. We have given the committee a budget to use when they need to buy supplies, ie. paper plates,etc. However they do not want to use the budgeted money, instead they want to raise theri own money through a 50-50 raffle and spend the money as they need to. The Board wsants them to conform to the policy that all committees do and use their budgeted money so we can keep track of the expenditures and know how to budget for the next year. This committee is made up of homeowner volunteers and changes every year. We want a consistent and uniform policy for all committees. Any advice?

We have an entertainment committee. (I am the chair) When I moved here in 2008 there was money in the annual budget for entertaiment. Now there is no money in the annual condo budget for enterainment. I schedule entertainers and we take a free will offering to pay each entertainer. Some of our members do give an extra donation for the entertainment fund. You may already have a New Years Eve party, but we had our first one December 31, 2010. A free will offering was taken to replenish the entertainment fund. I am responsible for this fund and need to give a reoport at each annual meeting. I save all receipts I receive. I am thinking of having a garage sale for the entertainment fund, but am not certain if I will have it.

We have entertainment every other month. The months we don't have entertainment, we have a catered dinner and each person is charged a set price for the dinner. The price includes the amount for the dinner plus about 50 cents over to pay for supplies. We provide the coffee and pay for each new owner's meal. The chair of this committee gives the financial report for it at our annual meeting.

Thank you. I did check with our Department of revenue, Office of Charitable Gaming and since we are not a 501 (c) (3) organization we must qualify for a license under wone of the five exemptions. The only exemption remotely possible is "civic service association" but the director told me that he has never qualified an HOA under that exemption/exception. Even if we did qualify, we would be limited to raising $5000.00 per calendar year and satisfy all reporting requirements. So, our option seems to be dues, assessments, and investments. any ideas?