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FionaC (California)
Posts: 212
Posted:
It may seem trivial but most recently our HOA President made several small gift card purchases for our board members as a way of saying "Thank You" to them or rather us. I assumed the purchase was from a personal method.

It was clear that our $150 for petty cash was used. No board member was aware obviously. Our docs don't even mention use of petty cash.

I feel this is a conflict of interests. I don't want to appear ungrateful, but I'd rather not get my starbucks card from monies meant for other means for our community.

Please advise if I am wrong? Can Petty Cash if not mentioned in our docs be used for purchases as such, by an individual HOA Pres? I am not sure. I can't find anything about this anywhere.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
That depends.

Unless your state laws or your governing documents prohibit such activity, then it would depend on how your budget is set up.

If, for example, your president is authorized a specified amount or "discretionary fund" by the board for the year, then he or she can spend up to that amount in any way he or she chooses, provided it is for the benefit of the association and its members. I know some organizations that do this. For example, as secretary of one organization I belonged to I was given a certain budget each year which I could spend any way I saw fit for the benefit of the organization or its members. I needed to get board approval if I wanted to spend more, or to make very large purchases.

Otherwise, I would tend to think no. Every expenditure must be authorized by the board in advance.
FionaC (California)
Posts: 212
Posted:
I OFF THE RECORD did tell them I appreciate the thought, but would rather use the funds otherwise. I just don't now how our homeowner's would like to know the money set aside for purchases was spent at STARBUCKS for the board. Keeping it low, but will not accept gifts of this nature againg using hoa
funds.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
I don't know about the large-dollar gift certificate or cards, but gift cards on the order of $25-$50 would not be unreasonable. Most nice plaques fall into that price range.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Were these given to individuals or used for the board - like at a morning breakfast meeting?

I think it's weird, but if it is in the budget for descretionary use, then look for a motion to purchase in the minutes. Someone had to make the purchase, but that person should have had permission either by motion or policy.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Gift certificates should never be given. Its a form of compensation, leads to abuse and suspicion from homeowners. Stick to the core duties of the HOA and keep it simple.

If you must give a gift certificate, ask people for donations and buy it separate from the HOA.
JonD1
Posts: 2,350
Posted:
Fiona:

I agree with the first line in your op. This matter is trivial.

Your words "small gift cards" suggests a limited value or token amount which IMO is not worth discussing.

Most people feel better when they or their efforts are appreciated perhaps the Presdient was attempting to offer a gesture of thanks to those who serve on the Board while others sit by and do nothing.

And to suggest this serves as some form of compensation for 12 months of service over how many years is nonsense.

Just what is the total budget of your property? Just what is the total value of your property? Is the Board doing an acceptable job managing your property?
So a gift card for a cup of coffee is going overboard?

Then why would such a small amount of money even come into consideration when many properties are facing debt, foreclosures, non payment of CCs, short sales and flat real estate markets. This is not a problem or issue worth pushing.

What kind of job does the President do? Are you satisfied with their handling of their position? If so why woulod you now bring into question a simple gesture of thanks on behalf of those owners who are served by the Board.

If you feel this goes against YOUR morals what you should do is clear. Retrun the card and inform the President you will accept nothing from the property in the future. YOUR conscience would be clear without insulting the effrots of the President or those others serving who might have appreciated the thought.

There is no right answer for every property each is different and should handle making their own decisions on matters such as this. To suggest this type of behavior causes suspicion and raises questions IMO that would be the case only in the minds of people looking to find fault and questions the judgment of others.

I applaud the actions of your President at a time when so few are willing to serve perhaps their actions are serving the best interests of the property by showing appreciation and value to those who volunteer their time.

But feel free to make a mountain out of a mole hill.............

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
And to suggest this serves as some form of compensation for 12 months of service over how many years is nonsense.


Nothing to do with my morals, its a form of compensation which is illegal in some states and against CCR/Bylaws in most associations. Dislike my opinion if you will, but its true. Doesn't matter how little the gift certificate is for.

If you feel you can comply with CCR/Bylaws you agree with and violate ones you dont, its up to you.
JohnA10 (Illinois)
Posts: 8
Posted:
There is an option. Instead of using HOA funds for gifts, consider passing-the-hat among board members and/or around the community at large. This would eliminate any appearance, or act, of impropriety. You may find that, when folks are asked to give, they will be more generous than when they are forced to give via their HOA dues.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By JohnA10 on 07/21/2011 6:48 PM
There is an option. Instead of using HOA funds for gifts, consider passing-the-hat among board members and/or around the community at large. This would eliminate any appearance, or act, of impropriety. You may find that, when folks are asked to give, they will be more generous than when they are forced to give via their HOA dues.

The OP is about gifts to the BOD. It seems silly to me for the BOD to "pass the hat" amongst themselves to buy gifts for themselves. "Passing the hat" amongst the homeowners to buy gifts for the BOD would work, but it shouldn't be a board member or the president "passing the hat."

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