Thank you gift to board member

Started by BarbaraA7 • 8 replies • 1611 views

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BarbaraA7 (Florida)
Posts: 1

Posted:

We are having a lot of renovations done in our HOA and one particular board member has been overseeing sod installation sprinkler installation has been out there every day in the hot sun sometimes working alongside trying to make sure everything is done correctly the homeowners have all noticed it and wanted to give him a token of appreciation from everyone in the development. It was decided that anyone who wanted to could give a donation at the end of that. We decided to give him a gift card to the restaurant of his choice. When we went to give him this token which was paid for by everyone in the association that chose to donate we were told by the president that this was illegal and could not be done is this true

AugustinD
Posts: 5,144

Posted:

I think your and your neighbors' intent is great. Unfortunately, many HOA governing documents flat out disallow any form of compensation to board members. Once in awhile I have seen HOA governing documents that allow compensation of a board member but only by a members' vote. Check your HOA's governing documents to see what they say.

If you all feel strongly enough about this, then you could maybe try to amend the governing documents to allow a group gift from all members. Though amending the governing documents is a big deal legally, time intensive and expensive.

If all of you wrote a thank you card and also volunteered to help with certain HOA issues, that might be as valuable to this hard-working individual.

MichelleK5 (New York)
Posts: 161

Posted:

I would just take the gift card, go to the restaurant and use it on take out.
Then just bring the dinner/lunch to his home and say his neighbors appreciate all the work he's doing for the sprinkler installation and you're
all showing your thanks.

This doesn't have to be members buying board members dinners. It could just be a neighbor showing another neighbor their appreciation. Nothing wrong
or unethical about it.

BillH10 (Texas)
Posts: 1,217

Posted:

I don't see a problem with this as Association funds were not used and resources of the Association were (presumably) not used in any way to gather the funds. This is a group of neighbors extending their thanks to another neighbor who did something for the neighborhood, and who also happens to be a member of the Board.

Its no different than if I purchase a bottle of wine for my neighbor who assisted me with a project in my garage. The fact I am the President of the Board, and his wife is on the Landscape Committee, is immaterial.

This is not compensation. Compensation would be if Association funds were used.

DouglasM6 (Arizona)
Posts: 724

Posted:

What a load of crap. He was not doing "work" for the association. He was not doing anything his position calls for. He was volunteering. Tell the president to suck wind and give it to him anyway.
Acts of kindness should never be repaid like this.

SheliaH (Indiana)
Posts: 6,964

Posted:

As others have said, this gift wasn't used with HOA funds (and people VOLUNTARILY contributed to the gift), so there's nothing "illegal about this." If your president can't show you in writing where your documents or some state statute prohibits this, go ahead and give the man the gift card with the thanks of his neighbors.

If the president is still concerned, it may be enough to enact a board resolution stating gifts of, say $25 or less are acceptable as a thank you to association volunteers but may not be purchased with HOA funds. Since some vendors give gifts to their clients as a thank you for your business type of thing, you can make a similar resolution - perhaps stating the gift has to be shared among the entire board, like a box of chocolates, as opposed to singling out a specific board member.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DouglasK1 (Florida)
Posts: 2,046

Posted:

Most association docs disallow compensation to board members, but my take like others above is that this refers to compensation from the association. I can't see how you can limit personal gifts between people who live in a neighborhood.

We had this happen once ourselves, a former board member gave each current board member a thank you card with a $5 Starbucks gift card as a token of appreciation. We accepted them graciously and that was that.

Escaped former treasurer and director of a self managed association.

KerryL1 (California)
Posts: 14,550

Posted:

With (most) others, I think a voluntarily donated gift of appreciation from neighbors to this hardworking directors is completely appropriate.

It seems to me that the documents usually say that no compensation may be given out of Association funds to directors.

TimB4 (Tennessee)
Posts: 21,061

Posted:

I think the President is siding on caution and potential perception issues.

Providing that Association funds are not used, I don't see an issue (and this has been discussed several times on this forum).

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