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HeleneN (Connecticut)
Posts: 84
Posted:
Our B.O.D. feels that it's alright to use condo fees to purchase gift cards, flowers, etc. as a way of saying 'thank you' to departing board members and committee chairs. PM says it's done all the time. I think it's an inappropriate use of funds and if board members feel compelled to gift they should reach into their own pockets. Some board members feel that they already contribute enough of their time to the community without compensation and shouldn't be expected to further shell out cash. They see this as way for the entire membership to say thank you(entire membership doesn't even know).
Do I need to lighten up here?! How do the rest of you handle something like this?
JeanneK3 (Maryland)
Posts: 562
Posted:
Helene:
You are correct; it is an inappropriate use of association money. Hold your ground and ask the others to contribute to the gift.
Jeanne
JonD1
Posts: 2,350
Posted:
Quote:
Posted By HeleneN on 01/10/2013 8:25 AM
Our B.O.D. feels that it's alright to use condo fees to purchase gift cards, flowers, etc. as a way of saying 'thank you' to departing board members and committee chairs. PM says it's done all the time. I think it's an inappropriate use of funds and if board members feel compelled to gift they should reach into their own pockets. Some board members feel that they already contribute enough of their time to the community without compensation and shouldn't be expected to further shell out cash. They see this as way for the entire membership to say thank you(entire membership doesn't even know).
Do I need to lighten up here?! How do the rest of you handle something like this?

Helene:

Everyone is entitled to their opinions I will share mine with you, knowing full well some of those who beleive in following the law to the letter might see differently.

People serving on the Board serve the community, the entire community, you included. Now if you have someone who has served and served well and for whatever reason might be leaving I see no reason to be against a "token" gift to serve as a gesture of thanks.

All to often in todays's world I see a complete lack of appreciation for people and what they do for others. And I would feel comfortable with making a reasonable "gift" to a retiring Board member as a way of saying thanks.

I look at it this way. In total your property is worth $__________. For some time this person has volunteered their time to manage and oversee that investment. To present them with a gift card or flowers IMO would be fine and in order.

Now to suggest the volunteer Board members pay out of their pockets to show appreciation for the services provided to the entire community makes no sense. The prooperty benefitted from their effrots not just the Board.

WE make gifts to several service providers on our property. Small $$$$ gifts to show our appreciation for their efforts. Maintenance, garbage men, post office lady, etc.

Perhaps you can see fit to allow this practice because in the end not really a huge deal.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I agree that the HOA funds should NOT be used to purchase these thank you gifts. It's NOT part of the operation costs the HOA money is there for. If they want to give, then YES it does need to come from their own pockets and NOT the HOA's. Plus there are possible tax ramifications for this as your HOA is a non-profit.

Wouldn't it be nice to do this for your volunteers? Yes, but it's NOT their money it is EVERY MEMBERS money. It is also VOLUNTEER. It's not time to put your hands in the till when the till is the water fountain at the mall...

Former HOA President
LauraR5 (Tennessee)
Posts: 220
Posted:
We have a line item in our budget for our community morale/social activities. It is not a large line item, but it is one, nonetheless. If you have one of those and that's where the money's coming from, then sure. If it's money that really probably ought to go to the landscapers, then no.

I would like to believe that when it's all said and done that homeowners think that the two (at least) years that we spend at their beck and call is worth a gift card to Applebee's. Not that I'm expecting one, but really it is a small token of appreciation, and whoever said those are lacking these days was right on.
JonD1
Posts: 2,350
Posted:
So lets see when someone cuts your hair do you tip them?
How about when someone delivers a new appliance to your home?
How about when someone serves you a meal?

Just who in your life do you feel should be thanked?

How about the men who pick up your trash each week?
How about the man who works around your property and has always treated you well?
How about the man or woman who delivers your mail whether sun, rain, shine, cold or hot?

Anyone deserve any thanks?

Then you have someone who managed your property, while you sat back and gave nothing, who attended meetings, took phone calls, made decisions about what was done and why, and they did his for nothing. In some cases for years.

So now their time serving comes to an end and in the opinions of some a gift card or flower arrangement is more than should be offered.

And while I understand everyone has the right to see things in their own way I certainly feel better knowing we here can put together a small effort to say thanks to people when it is warranted.

People give of their time to watch over your property while the vas majoriy sit back and do nothing but any thanks paid for from the funds of the property they served is not warranted. Makes no sense to me.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
NO ONE 'DESERVES' THANKS FOR DOING THEIR JOB

EVERYONE MERITS ADEQUATE SALARY FOR DOING THEIR JOB

IF ONE HAS VOLUNTEERED, A JOB WELL DONE IS THANKS ENOUGH

THERE ARE, IN FACT, PLACES WHERE TIPPING IS 'VERBOTEN'

Unless there is a line item in the member approved budget 'tipping' would consitute theft of funds bordering upon embezzelment (depending on $$$$ state law)

I am the treasurer for my hoa ~ if someone offered me a gift i would be insulted.

Our HOA does hold an annual catered (in house) 'volunteer dinner' which is a dedicated and voted on line item in our budget.
HeatherC6 (Washington)
Posts: 19
Posted:
I agree that unless it was voted on by the membership to have funds set aside for that specific reason, then using funds from any other line item would be incorrect use of the funds.

If everyone agrees that these volunteers deserve a gift then they should vote on it, or individually donate funds for the persons giftcard.

I am fairly new to the HOA Board, but I would not dream of using the funds for anything that the members of my HOA had voted for before hand.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By HeatherC6 on 01/10/2013 2:11 PM
I agree that unless it was voted on by the membership to have funds set aside for that specific reason, then using funds from any other line item would be incorrect use of the funds.

If everyone agrees that these volunteers deserve a gift then they should vote on it, or individually donate funds for the persons giftcard.

I am fairly new to the HOA Board, but I would not dream of using the funds for anything that the members of my HOA had voted for before hand.

I agree with Heather.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:

Quote:
So lets see when someone cuts your hair do you tip them?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
How about when someone delivers a new appliance to your home?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
How about when someone serves you a meal?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
Just who in your life do you feel should be thanked?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
How about the men who pick up your trash each week?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
How about the man who works around your property and has always treated you well?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
How about the man or woman who delivers your mail whether sun, rain, shine, cold or hot?

Yes, but with my own money, not from HOA that do not belong to me.
Quote:
Anyone deserve any thanks?

Yes, but with my own money, not from HOA that do not belong to me.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
CarolR11 (Colorado)
Posts: 2,563
Posted:
As editor of our newsletter and a member of the Board, I think committee members publicly and by name at least once a year. If a committee has complete a special project, I'll point that out in the newsletter too.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Well, I THANK them. . . .
JohnB26 (South Carolina)
Posts: 1,569
Posted:
nooooooooo ~ you only think you thank them

but

you do appreciate them

JonD1
Posts: 2,350
Posted:
Quote:
Posted By JohnB26 on 01/10/2013 1:49 PM
NO ONE 'DESERVES' THANKS FOR DOING THEIR JOB

EVERYONE MERITS ADEQUATE SALARY FOR DOING THEIR JOB

IF ONE HAS VOLUNTEERED, A JOB WELL DONE IS THANKS ENOUGH

THERE ARE, IN FACT, PLACES WHERE TIPPING IS 'VERBOTEN'

Unless there is a line item in the member approved budget 'tipping' would consitute theft of funds bordering upon embezzelment (depending on $$$$ state law)

I am the treasurer for my hoa ~ if someone offered me a gift i would be insulted.

Our HOA does hold an annual catered (in house) 'volunteer dinner' which is a dedicated and voted on line item in our budget.

John much of what you said means little.

So just to be sure if you volunteer your time and do your job to benefit everyone you "deserve" no thanks?

If you are not paid and have no salary what sesne does you next comment make? None.

Tips are "verboten" some places. What does that have to do with anything?
Are your documents writen in German???? Do they speak to gifts? Of course they don't.

"bordering upon embezzelment" That line has to be a joke right. If not you have no idea of what constitutes a violation of the criminal code.

And lastly, a simple gift is a possible crime but having your meal paid by the property is just fine.

If required then add a line item to the budget for petty cash or whatever name you wish to call it and then you could avoid being jailed!

LauraR5 (Tennessee)
Posts: 220
Posted:
Whatever happened to just being nice? Has your neighbor ever done anything nice for you and you thanked them with a gift?
Like I said, a lot of HOA issues could be solved if people were just neighborly.

Do I think folks should abuse it? Of course not. I would say folks should just take up a collection, but some people either don't realize and/or care what the HOA does for them, to say the least.

Is there a bigger issue here? Are there other management/misuse issues?
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Its possible to be nice and give thanks without spending HOA money. If you are truly thankful, cook them a homemade meal, invite them to a bbq, offer to help them with something. If all you care about is giving them a gift card, or flowers with a card from your HOA, your "thank you" effort is faceless and meaningless.
FredB4 (Ohio)
Posts: 375
Posted:
It is one of those little things that can get complicated and out of hand, so best not to do it at all.
JonD1
Posts: 2,350
Posted:
Thankfully each Board can address this issue as they see fit.

And Laura perhaps you now might see just how minor, minimal issues can become sticking points with some people.

Reminds of the time I planned to purchase door mats for our property. In my mind common sesne to protect the carpeting and reduce the need for clean up. Fairly cut and dry in my mind. Not so. Some on the Board needed to nail down the cost. Exactly to the penny. Now I don't know off hand the cost of doormats. $15 or so maybe but a visit to Home Depot and this purchase certainly was not needing debate. Then one idiot needed to question TAX how much tax would be added to each mat? You've got o be kidding??? No they were not.

So she made a motion to authorize a certain amount but IF the mats exceeded that amount I would need to come back the following month to seek Board approval in case the price was .10 more.

I made a motion I would buy the mats, put them in the hallways and tell them what they cost next month. For some people rather simple actions become a real challenge.

Yes people who serve your community in whatever capacity deserve little.
Even when they volunteer their time. Any wonder why people come to he point when they have had enough?

But what amazes me most is the logic behind the beliefs. Tipping is "verboten" someplaces. That supports your view? People don't "deserve" thanks for doing their job. So in an HOA the UNPAID Board member is just doing THEIR job protecting your property and the owners need not appreciate that in any way shape or form.

Just what are we talking about a $25 or so expense? And the one that really was priceless to me was the comment there might be possible tax
ramifications to the HOA because they are non-profit. WHAT????? Just what are you talking about??? Obviously, you don't have a reasonable argument so now we might have a tax problem.

How about finding a way to say thanks to someone for doing something you benefitted from and that they were not required to do????

Or how about those words of wisdom when this now might be a criminal act??? Simply pure nonsense.

Yes if a gift were offered I would be insulted but having the property cover the ocst of a meal for me that's fine. And in the mind's of some there is a difference?

In my life it is important to establish perosnal relationships with people. In doing so appreciation goes a long way. Whether it be the lady who delivers the mail, the men who haul away the garbage. They don't haul away just MY garbage, the Board members just don't protect my property. Ahnd although it may be lost on most people the ocst of a gif card or some flowers IS a small price o pay IMO for someone acting in your best interest and that of the entire property.

I wonder as Board members (for those who actually now serve) when was the last time someone thanked you for what you did?

JohnB26 (South Carolina)
Posts: 1,569
Posted:
JonD1
(New York):

Of course my governing docs do not speak directly of gifts, do yours?
By that logic one can spent on anything not mentioned as opposed to only spending on what is AUTHORIZED.

(my docs permit 'outside' spending provided there is a line item in the proposed annual budget to be voted in/out by a super-majority of the members)

If the governing docs do not authorize an expenditure ... the expenditure is not authorized (regardless of 'membership wishes').

If the budget requires a membership vote @ the annual meeting and does not contain a 'line' for an expenditure ... the expenditure is not authorized.

The willful expenditure (unless a critical emergency situation) of unauthorized funds would be called ?

A simple unauthorized gift to you of my neighbor's money which he entrusted to me for safe-keeping would be called ?

What part of Fiduciary Duty do you not understand?

ps. I find the very concept of tipping to be abhorant!
JonD1
Posts: 2,350
Posted:


Of course my governing docs do not speak directly of gifts, do yours?
By that logic one can spent on anything not mentioned as opposed to only spending on what is AUTHORIZED.

Well then WHY did you feel the need to mention about in someplaces tipping is "verboten". What did that have to do wih anything?

(my docs permit 'outside' spending provided there is a line item in the proposed annual budget to be voted in/out by a super-majority of the members)

If the governing docs do not authorize an expenditure ... the expenditure is not authorized (regardless of 'membership wishes').

If the budget requires a membership vote @ the annual meeting and does not contain a 'line' for an expenditure ... the expenditure is not authorized.

The willful expenditure (unless a critical emergency situation) of unauthorized funds would be called ?

Embezzlement???? NO.

A simple unauthorized gift to you of my neighbor's money which he entrusted to me for safe-keeping would be called ?

How about MURDER??? Am I geting close???? ARSON? Battery, or is it a crime just in John's world???

What part of Fiduciary Duty do you not understand?

What I understand is this John. Setting aside your personal dislike for signs of appreciation of any kind. Your argument based on what your documents require does not apply to all properties. Including that of the OP. Nor does your suggestion the presenation of a gift card to a retiring Board member now can be seen as "embezzlement". And I find it "interesting" somehow, some way your property holds an annual dinner which it pays for and satisfies the requirments you say exist. And sitting there at the table willing to ACCEPT this appreciation that you certainly don't "deserve" would be YOU. Not insulted, not fearing criminal charges and able to overcome your views that people "deserve" nothing for doing their job. Just how do you see YOUR way clear in accepting and signing off on this "abhorant" event? Thanking people and all???

ps. I find the very concept of tipping to be abhorant!

Another little fact that has NOTHING to do with this discussion. Seems though you allow your personal views to affect your thought process except when it comes to your free meal! That's OK.
FredB4 (Ohio)
Posts: 375
Posted:
My personal feeling is that a board shouldn't do it, but keep in mind that the board is voted in to look after the association and its finances and with that vote comes some discretionary authority, unless it directly conflicts with some specific bylaw.
Most associations don't have anything specific on the subject of gifts. Basically when you vote in a board you are handing them the authority to manage your real estate investment and make decisions on your behalf, so it seems silly to get upset over such a trivial matter ... sounds like more sour grapes from some past dispute.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
My HOA by-laws are clear that no board member receive compensation for board service. So...."gift" = compensation.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By KellyM3 on 01/14/2013 11:29 AM
My HOA by-laws are clear that no board member receive compensation for board service. So...."gift" = compensation.

So Kelly lets follow this logic. Compensation is some form of pay or fee for work performed. Hourly rate or yearly salary or whatever amount and schedule is agreed to.

So..... in fact your equation of "gift" = compensation would require that a $25 gift card or perhaps a flower arrangement would now serve to
satisfy any Board member for their efforts. Now understanding most attend at least 12 meetings and whatever work they might engage in outside those meeting your rate of compensation would provide pay of $25?

In no stretch of ones imagination could this compensate any Board member for their efforts. Lets take me, I have served for 25 years I won't bother to detail what I have done, when leaving your equaion would have us believe a token gift compenstates me for my 25 years of effort?

Hardly. So "gift" does NOT = compensation
FredB4 (Ohio)
Posts: 375
Posted:
Whether technically correct or not, only the most petty of minds equates a simple thank you card or gift as being compensation. The board is often not the one receiving the card, gift etc. anyway.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am against using HOA funds to purchase gift cards, flowers, or give money etc in tokens of appreciation or even loss. If you want to give, then the money should come out of the individual's pockets who wish to contribute. Otherwise, don't take it out of the entire HOA's funds. Remember the HOA funds are not the boards money it is EVERY MEMBERS money. It is to be used in the operation and maintenenance of the HOA of which the board was elected/chosen to handle on an everyday basis.

Now am I against getting a gift card? Heck no. It's just the source should be from those who want to give and are appreciative. It means more to me that way knowing that I got a card/gift from those who really wanted to say "Thanks" than just because there's money available to do so.

An example: I volunteereed for Habitat for Humanity. Worked as an assistant team lead of sorts. Helped build the house and was on site as much as possible training and building with all the other volunteers. The day came that we had to dedicate the house. I showed up and there were women with a popcorn machine and all smiles. They were trying to get people to come over and have a little community "social". Mind you I had never seen these women at the job site till this point. It was a special women's build house. The next thing I know there are awards being given out with plaques. They were giving thanks and awards to these women! Whom I never seen reach for a hammer or a broom. Turns out they just gave the money to the project. Now me and a few other women are covered in mud/dirt/paint watching all of this. Not one word is said to us in thanks but we did get free popcorn!

Now did I stop volunteering? No. I kept on doing it. It is not about the thank you and awards for the work. It's about what makes you feel inside knowing that you did something. I didn't sit around in my HOA and let someone rip the association off and bring it down. No, instead I brought it up to standards and increased the sales values. You get out of volunteering what you put in. I didn't get any gift cards but I sure did get a bunch of neighbors and friends out of the deal. That's worth more than any token gift anyone could have given me.

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
Melissa, I do agree with you and personally am against it but if the majority of board members approve it then it is such a small issue that I don't find it worth figting over. There are just too many larger issues to deal with.
HeleneN (Connecticut)
Posts: 84
Posted:
Many thanks for all of your comments. I think we all agree that a thank you in recognition for a job well done is never out of order.

Though I respect all of your opinions mine has not changed and was never about whether we should thank someone or not.

Now let's put this rest.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
O-M-G ~ i agree with MelissaP
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Just for the record, I thought I would chip in with the tax ramifications.

1. Money spent by an HOA for gifts may not be included as an expense when calculating the 90%/10% expenditure requirement for qualifying to be able to file Form 1120-H. In other words, 90% of the HOA's total expenditures must be related to those expenses necessary for the care and maintenance of the association's real property, such as lawn care, snow removal, insurance, property management, etc. Money spent on gifts goes in the "other" column. The amounts spent in the "other" column cannot exceed 10% of the association's expenses. Realistically, money spent on gifts is not likely to amount to 10% of an association's total expenditures, but I mention this only so it will be understood how it must be accounted for.

2. The Connecticut law for non-stock corporations does not prohibit compensation for directors (Section 33-1092). However, an HOA's bylaws or articles of incorporation may prohibit such compensation. Using IRS rules, "de minimus" gifts, such as flowers, are not considered to be compensation. However, gift cards presented as consideration for one's services, in any amount, ARE considered to be compensation by the IRS and thus, may be considered to be a violation of any such prohibition.

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