Holiday Fund Disclosure

Well, I don't live in Florida and I do understand your concern, but why haven't you asked your board these questions, or have you? What do your documents say about using Association funds? Is the fund part of your annual budget - if so, the homeowners should know its purpose, how it's funded and where the money has gone (e.g. X amount was used last year to fund a community holiday party). If you're not getting a response or doublespeak, perhaps you and your fellow homeowners should elect new board members who will be more forthcoming.

Why did someone buy a new car? Seriously, no matter if they distributed the money fairly and honestly, it's always going to be suspect to someone. Like "The HOA uses the money for a Holiday Party but not everyone goes". Is this fair? or "I noticed the HOA President carried in a New TV into their house"... So they must be giving that money to line their pockets...

Should the HOA disclose the money in the "holiday fund"? Yes. It should be a budget item on the expense report. Which should show up in the monthly report for December. (Often distributed in January). How or why they do it should also be known. Is it a gift card for all their hard work? Typically board members are all volunteer. This may be a way members feel is a way to show appreciation.

If you already think your board is doing bad things with the money, then that will be the results your going to be looking for. Is it such a bad thing a board member goes to Ruby Tuesdays for a meal with a gift card? Or is that nefarious for you?

What the heck is a "holiday fund"?

YES! If the board uses HOA money to take themselves out to dinner, that is a bad thing. If there is a budget item for gifts to workers, that's okay, but it would be unethical for a board to give themselves gifts.

Jason,

I believe your HOA documents would outline how holiday funds are to be spent. If they don't outline this, then you should speak with the board to get clarity on how funds are spent and who decides how these funds are spent.

We have an budget line item for Community Events. But nothing in our documents outline how these funds are to be spent.

Our HOA never ever gave out gift cards or any other kind of monetary benefits for board members/general members. I am against that practice myself. I believe the board can indeed contribute amongst themselves with their own money to give a gift card if they want.

However, I have seen many other HOA's have the practice of giving out gift cards or other gift type items. Although it's against what I believe, still need to give advice providing for that practice for those who do it. The OP's HOA sounded like one such HOA that does give out or provides something special for the Holidays. If so, then I don't see anything wrong with a holiday fund IF it is disclosed and viewable. Definitely NOT going to say the board is doing something nefarious or wrong by dining out with their Ruby Tuesday's gift card.

Of course they don't. Its supposedly conducted by firstService management company, and it's a voluntary contribution. To those asking what a "Holiday Fund" is, residents contribute any amount they want into a pool of money that is supposedly distributed to employees as "bonuses". Its a scam, of course, because it's the management company's responsibility to pay the employees. That's why we pay them. However, if people want to contribute that's up to them. But with 0 accountability, such a fund is highly problematic.

Good grief. It's still a concern. if they keep any of the money it's a crime.

Our HOA board solicits funds for holiday checks to certain vendor's employees (we have no director employees)--our custodians, security officers and building engineer. None of their employers give holiday bonuses.

The amount to each depends on their length of service. Donations are voluntary. Some residents give, some don't as they prefer to give individual gifts to their favorites and some give nothing at all, I imagine.

Our PM sends out the letters to owners and handles the contributions. Flyers are posted in the elevators and mailroom with staffers' names and length off service. She lets residents know in our Jan. News how much was collected. I suppose she could cheat and take some $ for herself, but it doesn't seem likely. If someone wanted to know how much each of the 10 or so staffers received, I personally would give them the list of names months of service and total and tell them to do the math.

Not necessarily.

You can't see where the money goes because it's managed by the MC not the Association.

Basically it's a tip jar where the tips are divided among the employees of the company at a rate determined by the company.