Advertising on HOA website

Started by DwightT • 2 replies • 1447 views

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DwightT (Idaho)
Posts: 664

Posted:

We've been approached by a local business (dentist's office) who wants to place an ad on our neighborhood website. While we don't allow advertising in the newsletter, the Board wouldn't be opposed to allowing ads on the website. The question has been raised though as to if we can/should charge for the ads? If we charge, would this be seen as a revenue stream and cause problems with our non-profit status?

One suggestion that one of the Board members had was that we don't charge directly for the ad, but instead we ask them make a donation for one of our community events. Any thoughts?

GloriaM (North Carolina)
Posts: 829

Posted:

Quote:

Posted By DwightT on 06/22/2007 8:39 AM
We've been approached by a local business (dentist's office) who wants to place an ad on our neighborhood website. While we don't allow advertising in the newsletter, the Board wouldn't be opposed to allowing ads on the website. The question has been raised though as to if we can/should charge for the ads? If we charge, would this be seen as a revenue stream and cause problems with our non-profit status?

One suggestion that one of the Board members had was that we don't charge directly for the ad, but instead we ask them make a donation for one of our community events. Any thoughts?

Dwight:

Charging for ads in newsletter or on a website would not interfer with your non-profit status. The cost of the ad would help defray the cost of the domain, website, or newsletter. Many HOA's advertise on the websites, as well as in newsletters, it helps pay for them.

BradP (Kansas)
Posts: 2,640

Posted:

Dwight:

As Gloria said it does not affect your non-profit status. We have advertised in our newsletter, helps defray the cost. I am not sure what an appropriate charge would be. If they are willing to do it then by all means go for it.

One of your other thoughts was not charging but accepting donations, that would work as well. Don't know if you have an all neighborhood function like national night out, but they could donate food, paper plates, etc. in lieu of cash.

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