Gift for departing board member

While I understand my opinion will be in the minority my view says YES a token gift within reason.

No it would not be appropriate to use HOA money for a gift. On the other hand, there is nothing to stop the other board members from dipping into their pockets and contributing.

No.

I do think that it is appropriate for the Board to put in personal funds to buy a gift or simply to have a cake at the individuals final board meeting.

My Association has had board members serve over 10 years. They were acknowledged at the annual meeting and received a round of applause.

So the entire HOA benefitted from their years of service.

But the board members should foot the bill alone.

Appreciation a quality severely lacking in today's word.

We give holiday tips to the people who remove refuse, deliver mail, and maintain the property.
But a volunteer who gives 10 years of their time deserves not even a gesture.

Sad....

While studying criminology years ago I was taught to see the difference between the letter of the law versus the meaning of the law.

IMO to many people live by the letter of the law never considering my standard what best serves the property.

No one does not like to be appreciated. And a small gesture paid for by the people who benefitted while most sat by and offered nothing
Is in my view not only permissible but the right thing to do and fair.

Sad it appears most are incapable of considering that.

Coming from an over 30 year background in law enforcement I have a different view.

Boards have a fiduciary duty to ensure that association funds are spent for the purposes intended. Those purposes are set out in the governing documents of the association. They also have a responsibility to ensure that there is not even an appearance of impropriety in their administration of association funds. Most governing docs prohibit compensation to board members for services rendered to the association - a strict interpretation of such a clause would mean that a gift paid out of association funds could be considered compensation.

It is a fact that as with most types of governance there are the folks who step up and volunteer, and those who do nothing. But it is also a fact that those who do and offer nothing have an absolute right to expect that those who step up and govern do so in an ethical manner, even if they didn't vote or attend a meeting - the BOD still represents them.

Perhaps folks see this as a grey area - I don't. Unless there is a specific provision for the use of association funds to pay for gratuities (and I don't believe some vague language like "or which they consider of general 1 benefit to the owners or occupants of the subdivision" should be so interpreted) I still say do not use association funds for gratuities.

Just agoogling around I found many instances of HOA boards improperly using association money - catering their meetings, awarding themselves gift certificates for "good work".

That's my opinion anyway (and you know what they say about opinions)

HELL that might set the HOA back $15-$20 ........

That's $1.50 to $2.00 for each year of service. There goes the budget.

When I stepped down last January (also after a decade of service!), the other board members chipped in and got me a gift card AND a bottle of wine (I'm a collector!)

While it would be a nice gesture for the HOA to show its appreciation with a small gift (no more than, say $25), I must agree that it's more appropriate for Board members to chip in for a gift.

Thank you all for your thoughtful and well considered responses. I still haven't decided which path to pursue. But I was wondering if the following information would change any of your responses:

Three years ago, we paid our MC $18k per year plus another $2k for nickel-dime charges. This year we are paying well under $10k. The difference is that we went from full service to financials-plus. The additional tasks that the MC no longer performs didn't just disappear. Board members stepped up to perform those responsibilities (without compensation of course).

The resigning director became our central repository for our records. She prints everything out and maintains our files using her own paper and toner. She has never put in for reimbursement of these expenses. We don't put in for mileage either, even though we drive to various places (like the post office and vendor offices) for HOA business.

We haven't done a board meeting in Hawaii for a while. Instead of paying for rooms, we hold all meetings at a township building (free) or in board member homes. When a meeting is held at hear house, she has food set out - Never reimbursed.

Especially, after hearing ALL those facts, in your case it's a no-brainer. I can't believe any board member or owner (in their right mind) would object or make an issue of it! Frankly, if they did, too bad! let them sue the HOA! IMO this is one of those cases which simply calls for the use good judgment, kindness and common sense. She obviously deserves it. IMO even if your governing documents specify a designated allowance for this purpose. If I were you I'd make it happen, the right thing to do!

We have recently transitioned from Declarant to owners and the BOD is going to give a plaque to the Declarant thanking him for his dedication and efforts. Each member of the BOD is going to chip in to pay for such.

IMO
Your showing appreciation for this woman would only send a good message out to your community about your HOA and may inspire more people to get involved.

I say do NOT use HOA money. If it means that much then no one should have an issue reaching into their own pocket. Is it fair to spend OTHER's money on their behalf?

This reminds me of when people at work come around asking for money for a "birthday gift" or "Flowers for a funeral". I don't give unless I want to or can afford it. I think it means more collecting from those who care to than using blank funds. I don't find it fair to those members who may not like this person, just moved in, don't know them, or has no appreciation for the work they did to contribute.

It can hurt someone's feelings as well. My grandmother passed away and I had to drive over 700 miles to her funeral. My co-workers did not raise a dime for me. Don't even think I got a card. However, several other co-workers had relatives pass away and it was "give give give" and sign this card... My feelings were hurt because who determined they deserved it? I know if I was a general member, I would not like having my board tell me "so and so" deserved this when I may think differently.

Many associations have a budget for a "welcoming committee" or a "welcome kit" to present to new residents (two of the communities I lived in did, the one I live in now does not). We would present a potted plant, fresh fruit or some home baked goodies along with all HOA information. While we could have just handed them all the rules, we chose to send a kind message of "welcome aboard" in hopes to inspire them to be involved with caring about our community. (HOA funded this so it's hard to imagine, how if we all agreed to giving a gift to a stranger that anyone would have problem giving one to a person who sacrificed themselves and worked hard for 10 years?). Honestly, during the time I was on my board, I never encountered such a long term board member stepping down. So this has been an interesting topic for me. (We had a wonderful president of about 3 years move away, I do remember donating money towards a gift along with the rest of the members, we collected door to door (mine was a small, quaint neighborhood, very informal compared to many here it seems). My point being, I still feel that to make an exception for the person you describe as someone who when way beyond her job description, IMO shouldn't be considered a crime. Don't feel it would cause friction or grumblings of favoritism because, honestly, how many people actually serve for that long? and how much funds are we actually talking about here?

Jon,

I am not saying to give an interest free loan (however, I am aware it can be interpreted that way).
Late charges would be imposed.
If the member complies with the payment plan, the late charges would be waived (as authorized by our governing documents).

As I pointed out in the thread on that topic, the Association has precedence of waiving late charges when the Board believes the payment history warrants it. Therefore, it is not special treatment. It is a unique circumstance where the individual came to the Board prior to incurring late charges.


No. I just don't believe that the Board should use Association funds.

I'd be the first to reach into my own pocket and make the suggestion or, as I suggested, be the one to purchase the cake for the last board meeting without asking others to pitch in. I've done this in the past, and I'll do it in the future. Examples:

As President of the High School Orchestra Boosters, I spent my own funds and purchased gift cards for every officer that served and presented them at the final concert while publicly recognizing their service

In the Navy I often supported gifts to comrades when they retired or changed duty stations

Collections at work for Joys, concerns and bereavement.


Jon,

You and I often agree on issues. In this case, we will simply have to disagree.

Personally, I believe that it's a deeper expression of appreciation when I reach into my own pocket.

In my opinion, the above statement is the key issue for the whole discussion.

For my Association, I simply don't see where such an expenditure would be authorized. Here is what my CC&Rs specify about assessments [emphasis added]:

The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents in the properties (including administrative and overhead expense) and in particular for the improvement and maintenance of the Common Areas, services and facilities devoted to this purpose and related to the use and enjoyment of the said Common Area and of the homes situated upon the properties and more particular the Association shall be responsible to carry out the following named functions in and about said Subdivision.

(a) To provide for the orderly collection and disposal of trash and garbage in and about said Subdivision.

(b) To maintain, care for and preserve the Common areas in the subdivision including areas located between or adjoining the fences and alleys in said Subdivision and all sidewalks in said Subdivision including but not limited to maintenance of the lawns, pruning of trees and shrubs, hedges or other bushes, raking and disposal of leaves or dead vegetation and any and all acts necessary to maintain an attractive appearance in and about the said townhouse subdivision.

(c) To provide for the care, maintenance and preservation of all streets and common walks in said Subdivision.

(d) To maintain throughout said Subdivision at various places chosen by the Association lighting if selected by it, which lights shall be operated, if practicable, on one meter the cost of said lighting to be borne by the Association.

(e) To maintain and preserve the identification signs and to pay all costs and expenses in connection therewith, or, if the Association deems it advisable, to construct such other identification signs as it desires and pay all costs and expenses in connection therewith.

(f) To pay the real estate taxes and the premiums for liability insurance, if necessary or desirable.

In theory yes, but in reality, no. This type of gratuity will only inflame the 90% of HO who hate HOA's. It will never inspire someone to take on such a thankless job.

The person NPS describes has served for a decade and is described as exceptional and helping save much HOA money, by her services and never asking for reimbursement for using her own supplies. To me that makes a big difference and is rare. I feel it would be easy to explain or defend this "exception". I'd sleep very well at night knowing that I helped make it happen. We're discussing a small token of gratitude in HOA name. (I would reach into my pocket and give a gift from myself, I agree with Melissa and Tim that's more meaningful, but that's not what we've been asked to give our opinion about.) Ideally, there should be something specific within you guidelines for this small expense. Sorry not convinced this is ethically wrong, if it is, it wouldn't bother my conscience.

I hope your not right that 90% hate HOA's

correct - the more accurate statement would be:

97% dislike HOAs

Well said Shelia!

Excellent point to establish ground rules for the future too. Personally I don't think in this instance realistically any gripes will arise. It's a very common practice to recognize the dedication of service by volunteers.

Shelia

Obviously, you are one of the few who lacks morals and ethics.

Do you condone boards holding their monthly meetings in Hawaii too?

Probably so........

Disturbing to me when so many can list so many reasons why not and few have the ability to find a way.
If your goal in the end is to do the right thing than you should find a way around any and all obstacles.
Not take with both hands from a person like this for more than a decade and then simply state your morals and ethics are such as you can take but never give anything in return.

I hope NPS provides the ending to this quandary.

Jon,

On the flip side, one could say that it's disturbing when so many can list many reasons to justify using Association funds for gifts rather then reach into their own pocket to buy the gift.

I state this not for argument sake but to demonstrate that there are two sides to every coin.

I don't think the issue is about ethics. I don't think the issue is about if the person is deserving of such a gift.
I think it's an issue of complying with governing documents.

NPS, and anyone else who supports using Association funds for length of service gifts, if your Board wants to establish a resolution that allows for x amount to be spent on gifts, specifies when such gifts will be provided (as you need to be fair, even to the Board member or committee member that caused more issues than provided solutions). Then I think it would be appropriate to utilize Association funds for gifts. This way, there is a policy in place that can be followed and the membership is made aware of such a policy and can voice objections or support as desired.

If you don't have such a policy in place, then you should reach into your own pocket rather than spend association funds.

I'm not defending my view.

Just as you believe you are in the right, I also believe that my opinion on the proper use of association funds is the correct one. And lets face it, neither I nor you will convince one another that we are correct.

It really is quite simple, whether you believe it or not there is a fiduciary duty to ensure that the funds entrusted to your care are only spent for the purposes they were assessed. Usually, governing documents are quite specific as to what the purpose of the assessments are for.

I did not say that the use of association funds to pay for a gift to a board member would escalate into a further misuse of funds, neither did I accuse anyone of a lack of morals or ethics. What I did was to pose the question if it is ok to think outside the box in order to come up with a reason to use association funds, when in fact there is no specific provision to use the funds for the purpose contemplated - then what is next? Who determines what is appropriate and what is not appropriate.

As for providing gratuities for service providers at holidays, if it is allowed by your governing docs go right ahead. But if you are relying on some language in the governing docs that allows funds to be spent "for the benefit of the association" I say no. The reason is very simple - who determines what is a benefit. Who decides on the amount? The right thing to do is if there is no provision in the governing documents to provide gratuities to fellow board members or to service providers then change the documents using the methods provided for in those documents.

As for being disturbed that I am one of those who list so many reasons why not and don't have the ability to find a way - allow me to make two suggestions on how to honor and reward a long serving board member.

1. If the governing documents do not specifically provide for using association funds for a gift - the have the board members pay for the gift.
or
2. Use the procedures delineated in the governing documents to change or amend the section relating to the assessment and spending of association funds to allow for it.

In finding a way - there should be no thinking outside the box or grey areas when it comes to the duty of an HOA board to account for and spend association money appropriately.

Have you all met a "Witch Hunter?" in your HOA? If you have not, you eventually will... Believe me, a year, 2 years or 5 years down the line your going to get one. When you do, they will bring up this simple kind gesture as some treasonous act of the board poor spending habits... "Look here! The BOD spent XXX amount of dollars on gift cards for themselves"... Are you ready to defend that when the time comes? It will come... I promise no matter how well you run your HOA. Expenditures now don't always make sense to those of the future...